Red Robin (RRGB) Q4 2025 Earnings Call Transcript
The Motley Fool
by newsfeedback@fool.com (Motley Fool Transcribing)February 25, 2026
AI-Generated Deep Dive Summary
Red Robin Gourmet Burgers (RRGB) reported mixed financial results for its Q4 2025 earnings call, with comparable restaurant sales declining 3.3% due to reduced customer traffic, despite a modest 0.3% increase in average check prices. Total revenues fell by $16.2 million to $269 million, driven by lower comparable sales and temporary restaurant closures. However, the company achieved significant adjusted EBITDA growth, reaching $11.8 million for the quarter (down $2.6 million year-over-year) and $69.7 million for the full year—a 53% increase compared to fiscal 2024.
The company’s operational efficiency initiatives played a key role in mitigating challenges. Labor costs were reduced by 250 basis points for the year, with labor efficiency contributing 180 basis points to restaurant-level margins. Red Robin also invested in technology, deploying ChatGPT AI and upgrading server devices to optimize labor management and improve order accuracy. These efforts helped maintain a restaurant-level operating margin of 11.4%, though it declined slightly by 10 basis points year-over-year due to inflation and traffic declines.
Looking ahead, Red Robin’s 2026 guidance projects comparable restaurant revenues to grow between 0.5% and 1.5% (excluding deferred loyalty revenue) and targets a 13% restaurant-level operating margin. Adjusted EBITDA is expected to range between $70 million and $73 million, with capital
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Originally published on The Motley Fool on 2/25/2026