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Red Robin Gourmet Burgers Inc. Q3 2025 Financial Overview

Red Robin Gourmet Burgers, Inc. (NASDAQ: RRGB), a well-known full-service restaurant chain, recently disclosed its financial performance for the fiscal third quarter ending on October 5, 2025. This report offers critical insights into the chain's revenue trajectories, operational efficiencies, and overall market positioning amidst challenging economic conditions.

Financial Highlights

In this latest quarterly report, Red Robin revealed several key financial metrics:

• - Total revenues reached $265.1 million, a decrease of $9.5 million compared to the previous year.
• - Comparable restaurant revenue registered a slight decline of 1.2% after considering deferred loyalty revenue recognition. If excluding this deferred impact, the decrease stands at 1.3%.
• - The company recorded a net loss of $18.4 million, reflecting an improvement of $0.5 million from the net loss of $18.9 million reported in Q3 of 2024.
• - Notably, Adjusted EBITDA increased by 81%, reaching $7.6 million, up from $4.2 million year-over-year.

Year-to-Date Performance

For the year-to-date period of fiscal 2025, Red Robin noted:

• - Total revenues were $941.2 million, showing a decrease of $22.2 million.
• - Comparable restaurant revenue remained unchanged when accounting for deferred loyalty revenue. Excluding this, it indicated a 0.6% increase.
• - The company's year-to-date net loss narrowed to $13.2 million, significantly better than the $37.8 million loss in the same period last fiscal year.
• - Adjusted EBITDA for the year to date was $58.0 million, marking an 86% increase from $31.2 million last year.

Operational Insights

Dave Pace, President and Chief Executive Officer, provided an optimistic outlook regarding the company’s operational performance. He stated, "The initial results from our First Choice plan have started to materialize, particularly highlighted by the Big YUMMM promotion, which exceeded our expectations. This initiative led to a sequential traffic boost of around 250 basis points during mid-week dining and lunch periods."

Pace further emphasized the operational achievements by saying, "Our team's continued efficiency enhancements have paid off, yielding a 90-basis point improvement in our restaurant level operating profit margin, largely attributed to labor efficiency enhancements. Our strategic adjustments in the topline metrics, paired with these operational efficiencies, have resulted in adjusted EBITDA surpassing our projections. While we acknowledge that our transformation journey is still in its infancy, we remain confident that the progress within our First Choice plan is establishing us as the preferred option for our guests, team members, and stakeholders."

Third Quarter Financial Summary

The table below encapsulates the financial performance for Q3 2025 compared to Q3 2024:

Balance Sheet and Liquidity

As of October 5, 2025, Red Robin’s liquidity stood at approximately $50.7 million, which includes cash reserves and the available borrowing capacity under its credit facilities. The reductions in outstanding borrowings under its credit line amounted to $177.7 million, down $11.8 million from the fiscal year's end.

Red Robin has amended its credit agreement to extend the maturity date to September 2027, providing additional flexibility essential for executing its First Choice plan’s objectives. They have also enlisted Jefferies LLC to facilitate the refinancing of long-term debt under the credit agreement.

Future Outlook

Looking ahead, Red Robin has provided updated financial guidance for fiscal year 2025:

• - Total Revenue projected around $1.2 billion
• - Restaurant Level Operating Profit expected at at least 12.5%
• - Adjusted EBITDA forecasted at at least $65 million
• - Capital Expenditures estimated at approximately $33 million

The company anticipates a decline in comparable restaurant sales of about 3% for the upcoming fourth quarter of fiscal 2025.

Conclusion

In conclusion, Red Robin's latest financial report paints a picture of a company striving to initiate transformation amidst headwinds. Although the results show certain declines, the improvements in adjusted EBITDA and operational efficiencies highlight a pivotal transition towards enhancing shareholder value and guest experience. The company’s focus on strategic initiatives, such as the First Choice plan, continues to set the foundation for ongoing recovery and growth in the competitive restaurant landscape.