Red Robin Gourmet Burgers (RRGB) Q4 2025 earnings summary

Executive summary

• Fourth quarter 2025 results reflect steady momentum from the First Choice plan, with comp sales down 3.3% and full-year comp sales down 0.3% excluding deferred loyalty revenue.

• Launched the First Choice strategic plan in mid-2025, resulting in steady business improvement and a significant year-over-year increase in Adjusted EBITDA.

• December traffic outpaced the Black Box Intelligence Casual Dining Index for the first time since Q3 2024, with momentum continuing into January before weather disruptions.

• Labor efficiency initiatives and targeted marketing drove profitability and guest engagement, with hourly turnover at its lowest since 2017.

• Focused on price-value, labor efficiency, and targeted marketing to drive operational excellence and market share gains.

Financial highlights

• FY2025 total revenues were $1,210.2M, down from $1,248.6M in FY2024; Q4 revenues were $269M, down $16.2M from 2024 due to lower comp sales and restaurant closures.

• Comparable restaurant revenue (excluding deferred loyalty revenue) decreased 0.3% year-over-year, with a 3.8% decline in guest traffic and a 4.2% benefit from net menu pricing.

• Restaurant-level operating profit margin improved to 12.7% for FY2025, up 190 basis points from FY2024.

• Adjusted EBITDA rose 53% to $69.7M for FY2025, driven by higher operating profit and cost control.

• Net loss for FY2025 was $23.3M, improved from a net loss of $77.5M in FY2024.

Outlook and guidance

• FY2026 guidance: comparable restaurant revenue growth (excluding deferred loyalty revenue) of 0.5% to 1.5%.

• Restaurant-level operating profit margin expected at approximately 13%.

• Adjusted EBITDA projected between $70M and $73M; capital expenditures planned at $25M to $30M.

• Full-year pricing impact expected to be 3.2% due to new menu rollout.

• Selling expense expected to increase in 2026 to support micro-targeted marketing.