Red Robin Gourmet Burgers (RRGB) Q1 2025 earnings summary

Executive summary

• Q1 2025 total revenues were $392.4 million, up $3.8 million year-over-year, with comparable restaurant revenue rising 3.1%.

• Net income reached $1.2 million, reversing a $9.5 million net loss in Q1 2024.

• Adjusted EBITDA more than doubled to $27.9 million from $13.4 million year-over-year.

• Leadership transition to new CEO, with continuity in strategic direction and focus on operational improvements and guest experience.

• Three owned properties were sold for $5.8 million, with proceeds used to repay $17.8 million in debt.

Financial highlights

• Restaurant revenues were $385.8 million, franchise revenue $4.5 million, and other revenue $2.1 million.

• Restaurant-level operating profit margin improved to 14.3% from 11.0% year-over-year.

• Adjusted EBITDA was $27.9 million, up $14.5 million year-over-year.

• Net income per diluted share was $0.07, compared to a loss of $0.61 per share last year.

• Selling expenses dropped to $9.4 million due to reduced paid media spend.

Outlook and guidance

• FY2025 revenue guidance set at $1.21–$1.23 billion, slightly narrowed from prior guidance.

• Restaurant-level operating profit margin guidance maintained at 12%–13%.

• Adjusted EBITDA guidance of $60–$65 million and capital expenditures of about $30 million.

• Q2 comparable sales expected to decline about 3% due to loyalty program headwinds and reduced menu price benefit.

• No further menu price increases planned for 2025; company will absorb expected tariff impacts.