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Oct 05
Red Robin Q3 2025 Earnings Report
Red Robin Gourmet Burgers, Inc. reported its financial results for the fiscal third quarter ended October 5, 2025.
Key Takeaways
Red Robin Gourmet Burgers, Inc. experienced a decrease in total revenues but showed significant improvements in net loss and adjusted EBITDA for the fiscal third quarter of 2025. The company's 'First Choice plan' and 'Big YUMMM promotion' contributed to sequential traffic improvement and enhanced restaurant-level operating profit margin, primarily due to labor efficiency.
Total revenues for Q3 2025 were $265.1 million, a decrease of $9.5 million compared to the prior year.
Net loss improved by $0.5 million, reaching $18.4 million in Q3 2025 compared to $18.9 million in Q3 2024.
Adjusted EBITDA increased by 81% to $7.6 million in Q3 2025, up from $4.2 million in Q3 2024.
Restaurant-level operating profit margin improved by 90 basis points year-over-year, reaching 9.9% in Q3 2025.
Red Robin
Red Robin
Red Robin Revenue by Segment
Revenue by Segment
Restaurant Revenue
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CapyFin.com Forward Guidance
Red Robin provided updated guidance for fiscal 2025, maintaining total revenue expectations while raising projections for restaurant level operating profit and Adjusted EBITDA. The company anticipates a decline in comparable restaurant sales for the fourth quarter.
Positive Outlook
- Total revenue guidance for fiscal 2025 remains approximately $1.2 billion.
- Restaurant level operating profit guidance increased to at least 12.5% from the prior 12.0% to 13.0% range.
- Adjusted EBITDA guidance raised to at least $65 million from the prior $60 million to $65 million range.
- Capital expenditures guidance increased slightly to approximately $33 million, indicating continued investment.
- The company entered into a fourth amendment to its credit agreement, extending the maturity date to September 2027, providing additional financial flexibility.
Challenges Ahead
- Comparable restaurant sales are anticipated to decline approximately 3% in the fourth quarter of fiscal 2025.
- The company does not provide guidance for income (loss) from operations and net income (loss) due to the difficulty of projecting non-core operating items.
- The company's liquidity was approximately $50.7 million, including cash and cash equivalents and available borrowing capacity, which is a reduction in outstanding borrowings from year-end fiscal 2024.
- The company has retained Jefferies LLC to support refinancing efforts for its long-term debt, indicating ongoing debt management needs.
- The forward-looking statements highlight various risks and uncertainties, including economic conditions, competition, and commodity costs, that could impact actual results.