Red Robin Gourmet Burgers (RRGB) Q1 2026 earnings summary

Executive summary

• Achieved strongest traffic performance since Q1 2023 and highest Q1 restaurant operating profit margin since 2021, driven by guest engagement, operational initiatives, and new menu launch.

• Big Yummm value platform, targeted marketing, and menu innovation supported guest satisfaction, incremental traffic, and check growth.

• Operational discipline and labor efficiency initiatives resulted in significant cost savings and enhanced guest experience.

• Net loss was $2.2 million, compared to net income of $1.2 million in Q1 2025, reflecting a $3.4 million decrease.

• Adjusted EBITDA was $27.3 million, a 2.1% decrease year-over-year.

Financial highlights

• Q1 2026 total revenues were $378.3 million, down $14.1 million (3.6%) year-over-year due to restaurant closures and lower comp sales.

• Restaurant-level operating margin improved by 50 basis points to 14.8%, the highest Q1 margin in five years.

• Comparable restaurant revenue decreased 0.6%, with a 1.0% increase in average check and a 1.6% decrease in traffic.

• Adjusted net income per diluted share was $0.13, down from $0.19 in Q1 2025.

• General and administrative costs decreased by $4 million to $23 million, while selling expenses increased to $13 million.

Outlook and guidance

• Fiscal 2026 guidance reaffirmed: comparable restaurant revenue growth of 0.5%–1.5%, restaurant-level operating margin around 13%, and Adjusted EBITDA between $70 million and $73 million.

• Capital expenditures projected at $25–$30 million for the year.

• Guidance excludes potential impact from refranchising initiatives.

• Management expects current cash, future cash flows, and borrowing capacity to be sufficient for anticipated needs over the next 12 months.