RRGB

It has been about a month since the last earnings report for Red Robin (RRGB). Shares have lost about 23.6% in that time frame, underperforming the S&P 500. But investors have to be wondering, will the recent negative trend continue leading up to its next earnings release, or is Red Robin due for a breakout? Well, first let's take a quick look at its latest earnings report in order to get a better handle on the recent catalysts for Red Robin Gourmet Burgers, Inc. before we dive into how investors and analysts have reacted as of late. Red Robin posted second-quarter fiscal 2026 results, with earnings missing the Zacks Consensus Estimate while revenues beat the same. Adjusted earnings of 12 cents per share missed the consensus estimate of 28 cents by 57.1%. The bottom line declined 53.8% year over year. Quarterly revenues of $277.64 million fell 2.1% year over year but beat the consensus mark of $276 million by 0.6%. Comparable restaurant revenues increased 1.3%, supported by a 1.5% increase in average guest check despite a 0.2% decline in traffic. Restaurant revenues were $272.62 million in the fiscal second quarter compared with $279.31 million in the prior-year period. Management stated that the decline in total revenues primarily reflected restaurant closures, partly offset by higher comparable sales.Franchise revenues increased to $3.64 million from $3.19 million a year ago. Other revenues rose to $1.38 million from $1.21 million. Management noted that the quarter marked the company’s best traffic performance since the first quarter of fiscal 2023. Restaurant-level operating profit was $40.08 million compared with $40.51 million in the year-ago quarter. Restaurant-level operating profit margin expanded 20 basis points to 14.7%, the highest second-quarter margin since 2022.The margin improvement primarily reflected higher average guest check, cost savings and labor efficiencies, which helped offset inflation. Management said labor efficiency initiatives generated approximately 50 basis points of year-over-year savings while guest satisfaction remained strong. Restaurant labor costs came in at $96.97 million compared with $99.71 million in the prior-year quarter. Cost of sales declined to $64.09 million from $65.16 million, while other operating costs decreased to $48.40 million from $49.60 million. Occupancy expenses fell to $23.08 million from $24.33 million.Selling expenses increased to $10.37 million from $6.35 million as RRGB invested behind the Big Yummm value platform and its localized First Choice marketing strategy. Adjusted EBITDA was $18.92 million compared with $22.43 million a year ago. Management attributed the decline primarily to the roughly $4 million year-over-year increase in marketing spending. As of July 12, 2026, Red Robin had cash and cash equivalents of $22.85 million compared with $19.92 million as of Dec. 28, 2025. Long-term debt was $163.36 million compared with $164.74 million at fiscal 2025-end. Inventories declined to $17.01 million from $25.73 million.Net cash provided by operating activities was $14.50 million during the first 28 weeks of fiscal 2026 compared with $29.51 million in the prior-year period. Purchases of property, equipment and intangible assets totaled $11.51 million compared with $18.50 million a year earlier. During the fiscal second quarter, RRGB announced three refranchising agreements covering 116 company-owned restaurants. The transactions are expected to generate approximately $96 million in gross proceeds and are anticipated to close during the third quarter, subject to customary closing conditions.The company plans to use the proceeds to reduce debt and strengthen its financial position. Management also continues to advance efforts to refinance its existing debt and expects the refranchising transactions to provide greater financial flexibility for its long-term strategic priorities. Red Robin reaffirmed its fiscal 2026 guidance. Comparable restaurant revenue growth, excluding deferred loyalty revenues, is expected between 0.5% and 1.5%. Restaurant-level operating profit margin is projected at approximately 13%.Adjusted EBITDA is anticipated between $70 million and $73 million, while capital expenditures are expected between $25 million and $30 million. The guidance excludes any impact from the announced refranchising transactions, and management expects to update the outlook following their completion. In the past month, investors have witnessed a upward trend in estimates revision. Currently, Red Robin has a strong Growth Score of A, though it is lagging a bit on the Momentum Score front with a B. Charting a somewhat similar path, the stock has a score of A on the value side, putting it in the top quintile for this investment strategy. Overall, the stock has an aggregate VGM Score of A. If you aren't focused on one strategy, this score is the one you should be interested in. Estimates have been trending upward for the stock, and the magnitude of this revision looks promising. Notably, Red Robin has a Zacks Rank #4 (Sell). We expect a below average return from the stock in the next few months. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Red Robin Gourmet Burgers, Inc. (RRGB) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Red Robin Gourmet Burgers, Inc. RRGB is preparing to refranchise 116 company-owned restaurants, a transaction set that could materially change its operating model. The deals are expected to generate $96 million in gross proceeds and expand the role of franchise revenues. The balance-sheet benefit is clear, but the earnings impact is less straightforward. Lower company-operated revenues, greater dependence on franchisees and the need to resize corporate costs will shape the post-transaction profile. Red Robin entered into three asset purchase agreements covering 116 of its 375 company-owned restaurants. The deals are expected to close in the fiscal third quarter, subject to customary closing conditions. Completion would increase the franchised restaurant base from 90 to 206 locations. The change would make franchisees a much larger part of the system and increase Red Robin's exposure to their operating and financial performance. Red Robin Gourmet Burgers, Inc. price-consensus-chart | Red Robin Gourmet Burgers, Inc. Quote The transactions are expected to generate approximately $96 million in gross proceeds. Red Robin plans to use the net proceeds primarily to repay outstanding borrowings under its credit facility and enhance financial flexibility. As of July 12, 2026, credit-facility borrowings totaled $167.2 million. Management is also working to refinance existing debt, making completion of the refranchising transactions an important step in the company's capital-structure plan. Red Robin expects total revenues to decline because company-owned restaurant sales will be replaced by franchise royalty income and advertising fund contributions. That will change the composition of reported revenues even though the locations continue operating under the Red Robin brand. Brinker International, Inc. EAT, a direct casual-dining peer, operates both company-owned and franchised Chili's and Maggiano's restaurants. At June 24, 2026, Brinker had 1,163 company-owned and 472 franchised restaurants, providing a useful comparison for how a mixed ownership model can affect revenue composition. Texas Roadhouse, Inc. TXRH, another casual-dining peer, also combines company and franchise operations. Texas Roadhouse spent $71.8 million on franchise acquisitions in the first half of 2026 while continuing to open company restaurants, showing that ownership mix remains an active capital-allocation lever across the restaurant group. Red Robin cautioned that the effect on operating income could be greater than the effect on revenues. Royalty and advertising contributions will replace restaurant-level operating profit, while a substantial portion of general and administrative expenses may not decline proportionately. That makes corporate cost reductions central to the strategy. If G&A does not fall in line with the smaller company-operated footprint, refranchising could pressure operating income even while improving liquidity and reducing debt. Fiscal 2026 guidance currently excludes the refranchising impact. Red Robin continues to expect comparable restaurant revenue growth of 0.5% to 1.5%, restaurant-level operating profit margin of approximately 13% and adjusted EBITDA of $70 million to $73 million. The company expects to update guidance after the transactions are completed. That update will be an important milestone because the current outlook does not yet reflect the announced shift in the restaurant portfolio. Refranchising could improve Red Robin's financial flexibility, but it also shifts more of the investment case toward franchise economics, cost resizing and execution. Until the transactions close and updated guidance is available, the post-transaction earnings structure remains uncertain. RRGB currently carries a Zacks Rank #3 (Hold). Its VGM Score of A, Value Score of A and Growth Score of B are favorable, while the Momentum Score of D is weaker. The mix supports a measured stance as investors assess the transition. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Red Robin Gourmet Burgers, Inc. (RRGB) : Free Stock Analysis Report Brinker International, Inc. (EAT) : Free Stock Analysis Report Texas Roadhouse, Inc. (TXRH) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Image source: The Motley Fool. Wednesday, Aug. 12, 2026 at 4:30 p.m. ET President and Chief Executive Officer - David A. Pace Chief Financial Officer - Mark E. Graff Operator: Good afternoon. Welcome to the Red Robin Gourmet Burgers Incorporated Second Quarter 2026 Earnings Call. This conference call is being recorded. During management's presentation and in response to your questions, they will be making forward-looking statements about the company's business. Outlook and expectations. These forward-looking statements and all other statements that are not historical facts reflect management's beliefs and predictions as of today. And therefore, are subject to risks and uncertainties as described in the company's SEC filings. Management will also discuss non-GAAP financial measures as part of today's conference call. These non-GAAP measures are not prepared in accordance with generally accepted accounting principles, but are intended to illustrate alternative measures of the company's operating performance that may be useful. Reconciliations of the non-GAAP financial measures to the most directly comparable GAAP measures can be found in the earnings release. The company has posted its second quarter 2026 earnings release on its website at ir.redrobin.com. On today's call, are David A. Pace, President and Chief Executive Officer and Mark E. Graff, chief financial officer. Now I would like to turn the call over to David A. Pace. David A. Pace: Good afternoon, everyone. Thank you for your interest in Red Robin. I am pleased to report that our momentum continued in the second quarter, significant progress across the business as we execute against our priorities under the First Choice plan. We have taken deliberate steps over the past year to strengthen the guest experience, improve hospitality and execution, and invest in traffic-driving platforms that we believe can increase frequency over time. We are seeing those actions translate into increased guest engagement elevated satisfaction scores, and improved restaurant level profitability. We also took major steps this quarter towards strengthening our balance sheet. We announced 3 refranchising agreements that will collectively generate approximately $96 million in gross proceeds upon closing. Our partners are seasoned multi concept operators who bring meaningful operating capabilities and resources and who share our hospitality first mindset, and core values. The proceeds received from these transactions which we expect to receive during the third quarter, will provide us with greater financial flexibility to refinance our existing debt and support our long term strategic priorities. This represents a step forward for our company and I appreciate the significant efforts expended by everyone on our team to drive this to a successful outcome. Taken together, the results in the quarter give us greater confidence and reinforces that the quarter. Comparable restaurant revenue grew 1.3% in the quarter, with traffic effectively flat at down 20 basis points. This traffic result outperformed the industry by 40 basis points as measured by Black Box and for the second quarter in a row represented our best traffic performance since Q1 of 23. In addition, we increased our share of visits by 80 basis points in trade areas where competitors are located. Our team has been working toward this inflection point for some time and it is encouraging to see it build and show up in the results. Value remains a key driver of this traffic performance, and the Big Yummm offer is delivering as expected. The platform continues to resonate with guests, especially against an economic backdrop where consumers are more discerning about where they spend. Big Yummm gives guests a clear, accessible entry point while preserving the full Red Robin experience that guests have come to expect. Combined with our targeted first choice marketing efforts, we are improving both reach and brand awareness. Helping us to engage guests more effectively to drive frequency. At the same time, we have remained disciplined on pricing. Our goal is to build traffic and frequency while protecting the value guests associate with Red Robin. Q2 was the fourth consecutive quarter in which our average check increase was below the industry. Turning to profitability. The top line momentum combined with disciplined cost management, enabled us to drive 4 wall efficiency including a 20 basis point increase in restaurant level operating margin to 14.7%. This represented the highest second quarter margin in 4 years. Adjusted EBITDA was in line with our high expectations and sets us up well to deliver against full year financial commitments. With that as a backdrop, let me walk you through where we stand on each of our First Choice priorities and how we are thinking about our strategic focus for the balance of the year. First, let's start with hold serve. Our hold serve pillar is about sustaining the operational progress we have made and then building on it. And that is exactly what our team continued to do in the second quarter. Our labor efficiency initiatives delivered 50 basis points of year over year savings. A key enabler has been the accountability and ownership embedded in our managing partner model. Which rewards our partners directly for the improvements they drive in their own restaurants. We are continuing to achieve these efficiencies while still providing high satisfaction scores that remain at the strong levels we have established over the past year. This continues to demonstrate that operational discipline and genuine hospitality reinforce 1 another. Our operators keep finding smarter ways to run efficient shifts, while providing great hospitality and that discipline has been showing up quarter after quarter. Moving to our Drive Traffic pillar, our value innovation platforms continue to gain traction with guests, and Big Yummm remains central to that story. The platform is mixing at healthy levels, and strengthening our relevance with value seeking guests. We continue to see improving traffic and trials since launched last year. Importantly, every Big Yummm meal still includes our signature bottomless sides and beverages, contributing to the compelling value our guests are asking for. Our objective is to generate traffic through attractive platforms rather than depend on broad based discounting. We continue to use a deliberate barbell approach to the menu, pairing accessible value with more premium and indulgent options so guests can choose Red Robin across different occasions and spending levels. We believe this approach is building a more sustainable foundation for long term traffic generation. To that end, we introduced our towering double cheeseburger sliders LPO, during the quarter. Giving guests a more indulgent option. We also recently broadened our bone in chicken wing lineup with new 8, 12, and 16 count options. That expansion was paired with the nationwide launch of garage beer. Making Red Robin the first national restaurant chain to offer the Kelsey Brothers owned brand across its system. For the social occasions our guests already come to Red Robin for. While it is still early, the reception so far has been encouraging. On the marketing front, our data driven first choice strategy continues to see the benefit of a more precise locally relevant approach to how we reach guests in each trade area. This is to prove the efficiency of our spend, helps build awareness and frequency over time. We expect to keep iterating and building on that this discipline as the year progresses. Turning to our Find Money pillar, I am pleased to update you on the progress we have made on our balance sheet objectives. As I mentioned at the beginning, since our last call, we have announced 3 refranchising agreements. Hotburgers with 69 restaurants across 8 states in the Southeast, Mid Atlantic, and Midwest, evergreen dining with 30 restaurants in Washington and Western Idaho, and 17 restaurants in Oregon, and Washington. Altogether, we expect to receive roughly $96 million in proceeds following the close of these transactions which we will use to pay down debt and further strengthen our balance sheet. We are excited about the new franchise partners we have gained through this process we are confident they will be strong stewards of the Red Robin brand in their respective markets. In parallel with the signing of these transactions, we further advanced our efforts to refinance our existing debt which comes current later this year. We continue to work with an experienced group of advisers to facilitate this process and have made considerable progress. While I do not have any additional details to provide at this point in time, I can tell you that we see this as an important step in giving the company more financial flexibility over the long term. And we will keep you updated as the process progresses. Turning to our Fix Restaurants pillar, we continue our 2026 light-touch refresh program. The goal is straightforward. Improve the guest facing elements that matter most to the dining experience, while maintaining a disciplined approach to capital. We recently refreshed 7 restaurants in the Saint Louis market, The updated elements modernized the ambiance and aesthetics and are designed to complement the improvements we have made in food, hospitality, and service execution. In addition to our facility refreshes, we are in the middle of rolling out replacement devices for our server handhelds, and we will shortly introduce an upgraded version of our Ziosk tabletop devices. We believe these investments will improve order accuracy, server efficiency, and overall speed of service, helping us return the gift of time that has historically been an important part of the Red Robin experience. Lastly, I will address the Win Together pillar. I continue to be proud of the sense of ownership and pride I am seeing across our restaurants and our support center. Our team members are rising to the occasion, putting guests first in everything we do, and actively bringing forward ideas that improve both restaurant operations and the guest experience. We continue to see strong adoption of the enterprise version of ChatGPT that we rolled out last fall across the organization. Adoption has been particularly strong in the field. Where our managing partners are putting these tools to work to optimize labor scheduling, manage food costs, and improve how we deliver guest service. We view this as 1 more tool that can help our operators make faster, better informed decisions. All of which is showing up in the operational efficiencies behind our results. On the people side, our commitment to building a supportive work environment continues to pay off. Hourly and restaurant management turnover remain at historically low levels. And employee engagement scores are tracking above industry benchmarks. That stability matters because experienced, engaged team members are better positioned to deliver a consistent guest experience. In addition, greater stability means lower recruitment and training costs further contributing to our improving restaurant level operating profits. As we move through 2026, we remain focused on building an environment where great people can grow meaningful careers while helping us strengthen execution and differentiate Red Robin in the marketplace. To the entire Red Robin team, thank you for your continued commitment to our guests and to each other. Your focus discipline, and guest first mindset are the foundation of the progress we are making. With that, I will turn the call over to Mark to review our second quarter financial results. Mark E. Graff: Thanks, David, and good afternoon, everyone. I would like to start by providing a recap of our financial performance for the fiscal second quarter of 2020. Total revenues in Q2 were $278 million, a decrease of $6.1 million from the prior year. This change in revenue was primarily due to the impact of restaurant closures offset by an increase in comp sales. Comp sales, excluding the impact of deferred loyalty revenue, were up 1.3% in the quarter. Q2 comp sales included a 1.5% increase in average check offset by flat traffic. This was our best traffic performance since Q1 of 2023. The 1.5 increase in average check consisted of a 3.3% increase in price offset by a 1.8% decrease in mix and discounts, driven largely by the impact of our Big Yummm value offerings. This is consistent with our strategy of maintaining compelling value while pricing prudently. As it relates to other aspects of our Q2 financial performance, restaurant level operating margin was 14.7%, an increase of 20 basis points compared to the second quarter of 2020. Benefits from average check, cost savings, and labor efficiencies was partially offset by inflation. As it relates to our commodity basket, as of the end of the second quarter, we were approximately 60% locked on our 2026 commodity needs. General and administrative costs were $17.6 million as compared to $17.4 million in the prior year quarter. The $200 thousand increase is primarily due to stock based compensation partially offset by reduced people costs from our corporate efficiency initiatives. Selling expense was $10.4 million compared to $6.4 million in the second quarter of 2020. The increase reflects our decision to invest behind the Big Yummm! Value platform and our personalization efforts to improve local market awareness and reach. Adjusted EBITDA was $18.9 million, down $3.5 million versus the second quarter of 2020. This was primarily driven by the $4 million year-over-year increase in marketing spend. We view that spend as an intentional investment behind the traffic driving initiatives David discussed. As it relates to our balance sheet and capital structure, we ended the second quarter with $23 million of cash and equivalents, and $10 million of restricted cash. Total liquidity was $48 million, consisting of cash and equivalents plus $25 million of available borrowing capacity, under our revolving credit facility. Turning to our outlook. We are maintaining our 2026 guidance. First, we expect comparable restaurant revenues to be between 0.5% and 1.5%, excluding the impact of deferred loyalty revenue. Second, restaurant level operating margin of approximately 13% Third, we expect adjusted EBITDA of between $70 million and $73 million Finally, we expect capital expenditures to be between $25 million and $30 million Please note that our outlook does not include any impact from the tactical refranchising initiatives David discussed earlier. In summary, our second quarter performance reflects continued improvement in the core operating fundamentals of the business. As we look ahead to the remainder of 2026, our priorities remain disciplined in executing against the First Choice plan, prudent investment in traffic driving initiatives, and continued progress in strengthening the company's financial foundation. David, I will now turn the call back to you. David A. Pace: Thanks, Mark. Second quarter results reinforce our belief that the First Choice plan is working. it is working because our team is executing on it with focus and discipline. Our labor efficiencies have continued and guest satisfaction has remained strong right alongside them. That combination continues to prove that hospitality and operational discipline reinforce each other rather than compete with each other. Big Yummm keeps performing as designed. And we supplemented it this quarter with real menu innovation. Combined with the continued sharpening of our first choice marketing, we believe we now have multiple layers of comp driving initiatives rather than relying on a single platform to carry the load. As we look forward, we also feel good about our new product development pipeline and ideas that we have for 2027. As we referenced, we have made real progress on our balance sheet initiatives with our 3 new refranchising agreements in the process we are engaged in to complete a refinancing and reduce our level of outstanding debt. Our restaurant refresh program and our technology implementations are showing up in the guest experience. And our team continues to execute across the system every single day. Putting it all together, we believe Red Robin has built real momentum. While we still have work ahead of us, we like the direction we are headed, and we believe the plan we have in place will make Red Robin a place that guests choose first team members are proud to be a part of, and shareholders can count on. With that, we are happy to take your questions. Operator, please open the lines. Operator: Thank you. We will now be conducting a question and answer session. If you would like to ask a question, please press star 1 on your telephone keypad. A confirmation tone will indicate your line is in the queue. You may press star 2 if you would like to remove your question from the queue. For participants using speaker equipment, it may be necessary to pick up your handset before pressing the star keys. 1 moment, please, while we poll for questions. Our first question is from Todd Brooks with StoneX. Please proceed with your question. Todd Brooks: Congratulations on a really solid quarter. It was great to see. So well done. Thank you. If I could dig in on a few questions, then I can jump back in queue. But I have got a number of them for you. Mark, can you give us any sense of how same store sales progressed across the quarter? And I do not know if you want to frame up any qualitative or quantitative commentary about how Q3 has started from a same store sales standpoint? Mark E. Graff: Yes, sure. So as we think about the quarter, we continue to see progression specifically on traffic as we got through the quarter. Where we ended our last period 7 with actually positive traffic in the period. So we felt like that had really good momentum. As a reminder, you know, we were kinda coming up on the expiration of our Big Yummm platform that we launched last year. So we feel like know, the marketing, the personalization was very much working behind that. So love to see that momentum. As it relates to, you know, the quarter, obviously, we are we are a little gunshined just given intra quarter results, but I think fair to say at a high level, we like the momentum we are seeing. As you see that reflected in the guidance. Todd Brooks: Okay. Great. And was there any meaningful lift in the business from the World Cup? In the quarter? David A. Pace: No. We did not we did not see much change in the business from the World Cup. Todd Brooks: Okay. Perfect. Thank you. I just wanna I was just reading the release, and I just wanted to see the language With the upside results in the quarter, the only reason that you are not raising guidance at this point is just the outstanding refranchising transaction right? it is not commentary about forward outlook for the second half. it is just you are in this weird place waiting for the transaction to close, and that is what is keeping the guidance reaffirmed. David A. Pace: Yeah. Look, think it is a little bit of that. We are trying to be cautious about what we put out given where we are. I mean, we are we are close to having all that resolved. And so like to keep the focus on getting that resolved. You know, as Mark said, second half of the year, we start to lap our Big Yummm initiative that we introduced last year in the middle of the year. And so, you know, I think what we see, we feel good about, but I just we do not wanna get out of over our skis, quite frankly. Understood. Understood. Todd Brooks: And I was a little conservative in my modeling on the selling cost side, and it seems like you had good results from the investment. In Q2. Is there any thoughts or any way to frame that up for how we should be thinking about selling costs in the second half of the year? David A. Pace: Yeah. I mean, look, I think selling costs you know, will be relatively consistent as we think about the second half of the year. But if you just for context on this, if you go back if you recall in Q2 of 25, we were basically without a chief marketing officer for most of that quarter. And so we kinda dialed back spend as a result, and that is when Russ came in. Russ and I actually both came in, and we kind of sorted out what do we wanna do, where do we wanna put our intention, and where do we wanna put our focus. While we were doing that, we were know, kinda putting any of the planned spending on hold just to keep the dry powder for what we wanted to do. So that was a little bit of the overlap. There. Okay. Todd Brooks: And then a final 1 for me, I will jump back in. Obviously, great success, 3 partners, $96 million in gross proceeds once the deal is closed. David, if you think about a digestion period where you and the team are gonna have to really focus on those transactions going well and those restaurants transitioning seamlessly to the new partners, you think we have created a pause here before we see further refranchising activity where we need to digest? Or what do you think is that when should we be looking for kind of further activity beyond this first 3 deals? Thank you. David A. Pace: Yeah. Look, thanks. I think nailed it. I mean, our focus is on making sure we do these right. So our teams are engaged right now, both getting to the finish line on closing the transactions and then setting up the transitions with the new partners so that we can kinda have as much of a seamless handoff as we can. What I would tell you is there is a lot of expressed interest from the outside that we have kind of said, look. Let's let's just kinda get through this. Let's make sure we hand these over the right way, and then revisit this. So exactly what you said, which is you know, I think the pause is to ensure that we execute the right way. Okay. Great to hear. Todd Brooks: Thank you both. David A. Pace: Thank you. Mark E. Graff: Thank you. Operator: Our next question is from Jeremy Hamblin with Craig Hallum Capital. Please proceed with your question. Jeremy Hamblin: Thanks. I will add my congratulations on the results. And the positive traffic, the improvement in traffic overall. Best in a few years. that is awesome. Just in terms of I think when you had guided back in May or kind of provided some direction, you expect Q1 to be, somewhat close to what you did I am sorry. Q2 to be somewhat close to what you did in Q1. Obviously, you were almost 200 basis points better, and it leads me to believe that you finished the quarter on a strong note. Seems like maybe you even have A little bit more momentum here at the start of Q2. But I just wanted to see if you could provide maybe a little bit more hint at that. And then as we look at comparisons, obviously, tougher comparison in Q3, versus what you had in Q2 before it eases again in Q4. So as you look at what is embedded in your guidance today for the year, should we be assuming that Q4 is gonna outperform Q3? Is that what your internal expectations are? David A. Pace: I think that is right on a couple of fronts. I think your point about momentum through the quarter is, as Mark said a minute ago, we feel good that we are kind of building momentum as we move through the quarter. Which gave us good confidence in particularly in the back half of the quarter. As we get into Q3, you had tougher laps as We come into the back half of the year, but I think, you know, the expectation is, as you said, Jeremy, we will be, you know, looking for Q4 to be stronger. Mark E. Graff: Yeah. And so, Jeremy, just to dimensionalize, I think we think traffic right, can keep the momentum a little bit stronger than it was in the first half. From a pricing perspective, obviously, we are pretty consistent there. that is no change. Really comes to the mix component, and that is really a function of just the Big Yummm and first half, right, the headwind. That starts to unwind. And so you get a nice benefit on check-in the back half. And so the combination of those pieces, you will see a little bit of same stores momentum in the back half. David A. Pace: You know, we also think we have got some good offers out there on the marketing side. You know, with our dinner value bundle. Yeah. Jeremy Hamblin: To that point, just a quick follow-up on what you expect menu pricing to be in the back half of the year. And then you see, you have got, like, the new dinner double feature. You talked about the towering double cheeseburger LTO as strong. It does seem like, you know, menu innovation and LTO innovation has been a net positive, but anything more you can share on that? Mark E. Graff: Yes. I will answer the pricing piece real quick and I will turn it to David to cover some of the marketing pieces. So we are still on that, we are just above 3% You know, we are at, 3.2, 3.3. That starts to know, that is that is about where it is been pretty flat all year. So it is it is been pretty consistent. So I will turn it to David for the marketing. David A. Pace: Yeah. On the on the promotional activity, Jeremy, the dinner double feature idea was to for, laser target our dine-in dinner business The Big Yummm has had a great effect on the business, but it is been skewed toward the lunch business, and our lunch business has accelerated pretty aggressively. Not as much on the dinner business, although the slope is the same. And I think we think there is an opportunity to further close that traffic gap with a targeted offer at the dinner dine in business. And so that is that is what is behind the dinner double feature idea. But the rest of the work that we have done, we feel good about. You know, some things work better than others as we have moved through the year. But we feel like, you know, the brand is now able to innovate introduce ideas that capture the guest's attention. I mean, the slider stuff was really unique. We got a lot of commentary back about that. And we have got other things planned as we exit the year and head into 2027. So I think, you know, we are we are feeling pretty good about the pipeline that we have got. And I think, you know, it is more specifically about the dinner double feature. it is targeted at a specific part of the business. Got it. Jeremy Hamblin: And then just a couple other quick hitters here. Commodity expectation in the back half of the year, particularly what you might be seeing on beef prices? And then know, the other 1 is really you know, post getting these refranchising deals across the finish line, which I think is gonna span mostly the month of October. I am guessing you probably have already met with some bankers about the refinancing. Can you give us a sense for what you think your future interest rates might look like or kind of a range? I think you guys are paying still about mid teens today. I would imagine that might come down to, you know, 7% to 8%, something like that, given where your net debt to EBITDA would be post refranchising cash flow. David A. Pace: Yeah. I mean, so Jeremy, I think, again, directionally you are right where we are. I think, you know, we wanna get these closed. We are in discussions with the bankers. We are looking at various options I do not wanna I do not wanna get too far ahead of our skis again on interest rate projections. But you know, I think our feeling is that we certainly can do better than where we are right now and we are working toward that as an objective. How much better we will see as we work through this. But we still have a we still have some wood to chop to get through that. But I think, you know, directionally, the tone and the direction you are thinking is where we are. And I will let Mark talk a little bit about the commodity question part of your question. Yeah. Mark E. Graff: On the commodity side, we have been running, you know, call it, almost 5% in the front half. That will be more deflationary in the back half. Kinda closer to a blended 3%. The biggest drivers there being beef and poultry you know, kinda coming down over time. Beef's obviously still inflationary, but just not as inflationary as it was in the front half. Thanks so much for the color. Jeremy Hamblin: Appreciate it. David A. Pace: Thanks, Jeremy. Operator: We have reached the end of the question and answer session. I would like to turn the floor back over to David A. Pace for closing comments. David A. Pace: Yes, just quickly, thanks everybody for jumping on the call. We appreciate the interest. Hopefully you got a sense of our enthusiasm and our optimism as we move through the year and as we head toward the back half of the year. Feel really good that the First Choice plan is working, and you know, we look forward to continuing with that. And talking to you again at the end of Q3. So thanks, and that is it for us. Operator: Thank you. This concludes today's teleconference. You may disconnect your lines at this time. Thank you for your participation. Before you buy stock in Red Robin Gourmet Burgers, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Red Robin Gourmet Burgers wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $419,408!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,348,694!* Now, it’s worth noting Stock Advisor’s total average return is 966% — a market-crushing outperformance compared to 213% for the S&P 500. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built by individual investors for individual investors. See the 10 stocks » *Stock Advisor returns as of August 19, 2026. This article is a transcript of this conference call produced for The Motley Fool. While we strive for our Foolish Best, there may be errors, omissions, or inaccuracies in this transcript. As with all our articles, The Motley Fool does not assume any responsibility for your use of this content, and we strongly encourage you to do your own research, including listening to the call yourself and reading the company's SEC filings. Please see our Terms and Conditions for additional details, including our Obligatory Capitalized Disclaimers of Liability. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. Red Robin (RRGB) Q2 2026 Earnings Call Transcript was originally published by The Motley Fool

This article first appeared on GuruFocus. Total Revenues: $278 million in Q2 2026, a decrease of $6.1 million from the prior year, primarily due to restaurant closures offset by an increase in comp sales. Comparable Restaurant Sales: Increased 1.3% in the quarter, excluding the impact of deferred loyalty revenue. Traffic: Effectively flat at down 20 basis points, outperforming the industry by 40 basis points and representing the best traffic performance since Q1 2023. Average Check: Increased 1.5%, consisting of a 3.3% increase in price offset by a 1.8% decrease in mix and discounts. Restaurant-Level Operating Margin: 14.7%, an increase of 20 basis points compared to the second quarter of 2025, representing the highest second-quarter margin in four years. Adjusted EBITDA: $18.9 million, down $3.5 million versus the second quarter of 2025, primarily driven by a $4 million year-over-year increase in marketing spend. General and Administrative Costs: $17.6 million, compared to $17.4 million in the prior year quarter. Selling Expense: $10.4 million, compared to $6.4 million in the second quarter of 2025, reflecting investment behind the Big Yum! value platform and personalization efforts. Cash and Liquidity: Ended the second quarter with $23 million of cash and equivalents and $10 million of restricted cash; total liquidity was $48 million. Refranchising Proceeds: Announced three refranchising agreements expected to generate approximately $96 million in gross proceeds upon closing. Labor Efficiency Savings: Delivered approximately 50 basis points of year-over-year savings in the second quarter. Warning! GuruFocus has detected 5 Warning Signs with RRGB. Is RRGB fairly valued? Test your thesis with our free DCF calculator. Release Date: August 12, 2026 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Same-store sales grew 1.3% in Q2 with traffic effectively flat, marking the best traffic performance since Q1 2023 and outperforming the industry by 40 basis points. Restaurant-level operating margin increased 20 basis points to 14.7%, the highest second-quarter margin in four years, driven by labor efficiency savings of approximately 50 basis points. Announced three refranchising agreements expected to generate approximately $96 million in gross proceeds, which will be used to pay down debt and strengthen the balance sheet. Big Yum! value platform continues to drive traffic and guest engagement, with the company maintaining disciplined pricing (average check increase below industry for the fourth consecutive quarter). Menu innovation, including the towering double cheeseburger sliders and expanded bone-in chicken wing options with Garage Beer, is gaining traction and supporting traffic growth. Total revenues decreased by $6.1 million year-over-year to $278 million, primarily due to restaurant closures. Adjusted EBITDA declined by $3.5 million to $18.9 million, driven by a $4 million increase in marketing spend. Average check increase was only 1.5%, with a 1.8% negative impact from mix and discounts due to Big Yum! value offerings, pressuring profitability. The company faces a tougher comparison in Q3 as it laps the launch of Big Yum! from the prior year, potentially impacting sales growth. Commodity costs remain inflationary, particularly for beef, though expected to moderate in the back half of the year. Q: Can you provide any sense of how same-store sales progressed across the quarter and how Q3 has started?A: Mark Graff (CFO) noted continued progression in traffic throughout the quarter, with the final period of Q2 actually achieving positive traffic. He attributed this momentum to the effectiveness of the marketing and personalization efforts behind the Big Yum! platform. While cautious about providing intra-quarter specifics, he affirmed that the company likes the momentum it is seeing, which is reflected in the maintained guidance. Q: With the upside results in the quarter, is the only reason you're not raising guidance the outstanding refranchising transactions, rather than a commentary on the forward outlook?A: David Pace (CEO) confirmed that the decision to maintain guidance is partly due to the pending refranchising deals and a general sense of caution. He explained that as the company begins to lap the Big Yum! initiative in the second half of the year, they feel good about the outlook but do not want to "get out over our skis." The focus remains on successfully closing the transactions. Q: As we look at tougher comparisons in Q3 versus Q2, should we assume Q4 will outperform Q3 based on your internal expectations?A: David Pace (CEO) agreed with this assessment, noting that momentum built through Q2 gives confidence for the back half. Mark Graff (CFO) added that while traffic can maintain its momentum, the mix headwind from the Big Yum! value platform will begin to unwind in the back half, providing a benefit to average check. This combination, along with new marketing offers like the dinner value bundle, supports the expectation for stronger performance in Q4. Q: Can you give us a sense of what your future interest rates might look like post-refranchising, given the significant debt paydown?A: David Pace (CEO) stated that while the company is in discussions with bankers and exploring various options, he did not want to project specific interest rates. However, he affirmed that the company's objective is to secure better terms than its current mid-teens rate, and the direction of the analyst's thinking is aligned with their own. He emphasized that there is still work to be done to finalize the process. Q: What are your commodity expectations for the back half of the year, particularly regarding beef prices?A: Mark Graff (CFO) reported that commodity costs ran at almost 5% inflation in the first half, but the company expects a more deflationary environment in the back half, closer to a blended 3%. The biggest drivers are beef and poultry costs coming down over time, with beef still inflationary but at a lower rate than in the first half. Q: Is there any meaningful lift in the business from the World Cup in the quarter?A: Mark Graff (CFO) stated that the company did not see much change in the business from the World Cup. Q: How should we think about selling costs in the second half of the year, given the significant investment in Q2?A: David Pace (CEO) indicated that selling costs will be relatively consistent in the second half. He provided context that the year-over-year increase was partly due to a low base in Q2 2025, when the company was without a Chief Marketing Officer and had dialed back spending. The current level reflects intentional investment behind traffic-driving initiatives. Q: Do you think we've created a pause here before we see further refranchising activity, or when should we look for more deals beyond the first three?A: David Pace (CEO) confirmed that the immediate focus is on executing the current three transactions correctly, ensuring a seamless handoff to the new partners. While there is significant external interest, the company has deliberately paused further activity to ensure the current deals are done right before revisiting additional refranchising opportunities. Q: What is your expectation for menu pricing in the back half of the year, and can you share more on the new menu innovation like the dinner double feature?A: Mark Graff (CFO) stated that pricing remains consistent at just above 3%. David Pace (CEO) explained that the dinner double feature is a targeted offer to close the traffic gap in the dinner daypart, which has lagged the lunch business driven by Big Yum!. He expressed confidence in the innovation pipeline, noting the success of items like the towering double cheeseburger sliders and plans for more ideas heading into 2027. For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Interested in Red Robin Gourmet Burgers, Inc.? Here are five stocks we like better. Comparable sales rose 1.3% in the second quarter, with traffic effectively flat and restaurant-level margins improving to 14.7%, a four-year high for the period. Revenue fell to $278 million and adjusted EBITDA declined to $18.9 million, largely because restaurant closures reduced sales and marketing spending increased by $4 million year over year. Red Robin expects approximately $96 million from three refranchising deals to help reduce debt and support refinancing, while maintaining its full-year outlook for 0.5%–1.5% comparable-sales growth and $70 million–$73 million in adjusted EBITDA. Red Robin's Comeback: Q1 Earnings Spark Investor Hopes Red Robin Gourmet Burgers (NASDAQ:RRGB) reported second-quarter 2026 comparable sales growth and improved restaurant-level margins as the casual-dining chain continued to invest in value offerings, marketing and operational efficiency under its “First Choice” plan. Chief Executive Officer Dave Pace said same-store sales increased 1.3% during the quarter, while traffic was effectively flat, down 20 basis points. The traffic result outperformed the industry by 40 basis points, according to Black Box Intelligence, and represented the company’s best traffic performance since the first quarter of 2023. → SoundHound AI Sends a Loud Signal After Its Q2 Earnings Beat Can CAVA, Red Robin, and Cracker Barrel Match Chipotle's Q1 Win? Pace said Red Robin increased its share of visits by 80 basis points in trade areas with competitors. He attributed part of the performance to the Big Yummm Burger Deal, a value platform that includes the company’s bottomless sides and beverages, as well as targeted marketing intended to improve local awareness and guest frequency. Total second-quarter revenue was $278 million, down $6.1 million from the prior-year period. Chief Financial Officer Mark Graff said the decline primarily reflected restaurant closures, partly offset by the increase in comparable restaurant sales. → AST SpaceMobile Earnings Just Reminded Investors How Risky Space Can Be Toast Sets New Standard in Restaurant Management Platforms Comparable sales, excluding deferred loyalty revenue, rose 1.3%. The result reflected a 1.5% increase in average check and flat traffic. The average-check gain included a 3.3% price increase, offset by a 1.8% decline in mix and discounts, which Graff said was driven largely by the Big Yummm Burger Deal. Management said it has sought to maintain value for guests while using pricing cautiously. Pace said the second quarter marked the fourth consecutive quarter in which Red Robin’s average-check increase trailed the industry. → First Solar’s Profit Engine Faces a New Policy Test in Washington Restaurant-level operating margin increased 20 basis points from the prior year to 14.7%, the company’s highest second-quarter margin in four years. Graff said higher average check, cost savings and labor efficiencies partly offset inflation. Adjusted EBITDA was $18.9 million, down $3.5 million from the prior-year quarter. The decline was primarily due to a $4 million year-over-year increase in marketing spending. Selling expense rose to $10.4 million from $6.4 million a year earlier as Red Robin invested in the Big Yummm Burger Deal and personalization efforts. Pace said labor-efficiency programs produced approximately 50 basis points of year-over-year savings. He pointed to the company’s managing partner model, which directly rewards restaurant leaders for improvements at their locations, as an important contributor to those savings. The company said guest satisfaction scores remained strong while it pursued efficiencies. Pace also said hourly and restaurant-management turnover remained at historically low levels, while employee engagement scores were above industry benchmarks. Red Robin continued to broaden its food and beverage offerings during the quarter. The company introduced Towering Double Cheeseburger Sliders as a limited-time offering and expanded its bone-in wing lineup with eight-, 12- and 16-count options. The wing expansion coincided with the nationwide launch of Garage Beer, making Red Robin the first national restaurant chain to offer the brand owned by the Kelce brothers, according to Pace. Management also discussed a targeted Dinner Double Feature offer aimed at dine-in dinner occasions. Pace said the Big Yummm Burger Deal has particularly helped lunch traffic, and the new offer is intended to help narrow the traffic gap in dinner business. Graff said menu pricing is expected to remain just above 3% in the second half, or about 3.2% to 3.3%. Commodity costs, which ran at nearly 5% inflation in the first half, are expected to become more favorable in the back half, with blended inflation closer to 3%, aided by easing beef and poultry costs. Beef is still expected to be inflationary, but less so than in the first half. Red Robin announced three refranchising agreements expected to generate approximately $96 million in gross proceeds upon closing. The agreements cover 69 restaurants with Op Burgers across eight Southeastern, Mid-Atlantic and Midwestern states; 30 restaurants with Evergreen Dining in Washington and western Idaho; and 17 restaurants with Kuber Dining in Oregon and Washington. The company expects to receive the proceeds in the third quarter and use them to pay down debt and support a refinancing of existing debt that becomes current later in 2026. Pace said Red Robin has made “considerable progress” in the refinancing process but did not provide details on potential terms. At the end of the second quarter, Red Robin held $23 million in cash and equivalents and $10 million in restricted cash. Total liquidity was $48 million, including $25 million of available borrowing capacity under its revolving credit facility. Pace said the company intends to focus on completing and smoothly transitioning the three announced refranchising transactions before considering additional refranchising activity, despite receiving outside interest. Red Robin maintained its fiscal 2026 guidance, which excludes the effect of the refranchising initiatives. The company continues to expect: Comparable restaurant revenue growth of 0.5% to 1.5%, excluding deferred loyalty revenue; Restaurant-level operating margin of approximately 13%; Adjusted EBITDA of $70 million to $73 million; and Capital expenditures of $25 million to $30 million. Management said it expects comparable-sales momentum to improve in the second half, with the fourth quarter anticipated to be stronger than the third quarter. Pace said the company will face more difficult comparisons as it laps the mid-2025 introduction of the Big Yummm Burger Deal but remains encouraged by traffic trends, new menu offerings and marketing initiatives. Red Robin Gourmet Burgers, Inc, trading on NASDAQ under the ticker RRGB, is a leading casual dining restaurant company headquartered in Greenwood Village, Colorado. The company specializes in offering a diverse menu centered on gourmet burgers, bottomless steak fries, salads, sandwiches and a selection of alcoholic beverages. Red Robin operates restaurants under its flagship Red Robin® brand, serving guests through both dine-in and off-premises channels, including delivery and carry-out. The company also leverages technology and loyalty programs to enhance the guest experience and drive repeat visits. Founded in 1969 in Seattle, Washington, Red Robin began as a small tavern before evolving into a family-friendly restaurant concept focused on premium burgers. This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected]. The article "Red Robin Gourmet Burgers Q2 Earnings Call Highlights" was originally published by MarketBeat. View MarketBeat's top stocks for August 2026.

Our analysts just identified a stock with the potential to be the next Nvidia. Tell us how you invest and we'll show you why it's our #1 pick. Tap here. Achieved a significant traffic inflection point with comparable restaurant revenue grew 1.3%, while traffic was down 20 basis points, outperforming the industry traffic metric by 40 basis points. The 'Big Yummm' value platform continues to drive guest frequency and engagement by providing an accessible entry point without relying on broad-based discounting. Restaurant-level operating margin expanded to 14.7%, the highest second quarter margin in four years., driven by labor efficiencies and disciplined cost management under the managing partner model. Strategic refranchising of 116 restaurants is expected to generate $96 million in gross proceeds to strengthen the balance sheet and facilitate debt refinancing. Maintained a 'barbell' menu strategy, pairing value platforms with premium LTOs like towering double cheeseburger sliders to capture diverse dining occasions. Operational discipline and hospitality are reinforcing each other, evidenced by high guest satisfaction scores alongside 50 basis points of labor savings. Management reaffirmed 2026 guidance, assuming comparable restaurant revenue growth between 0.5% and 1.5% and adjusted EBITDA of $70 million to $73 million. Expectations for the second half of 2026 include building momentum in traffic while lapping the initial launch of the Big Yummm initiative. The 'Dinner Double Feature' is being introduced to specifically target and close the traffic gap in the dine-in dinner segment, which has lagged lunch growth. Commodity inflation is expected to ease from 5% in the first half to a blended 3% in the second half as beef and poultry pressures moderate. Proceeds from refranchising transactions, expected to close in the third quarter, are earmarked for debt reduction and improving financial flexibility. Announced three major refranchising agreements covering 116 units across multiple states, shifting toward a more asset-light model. The company is currently in active negotiations to refinance existing debt that becomes current later this year, aiming for more favorable interest rates. Marketing spend increased by $4 million year-over-year as an intentional investment to support the Big Yummm platform and local market awareness. Technology upgrades are underway, including new server handhelds and Ziosk tabletop devices to improve order accuracy and speed of service. One stock. Nvidia-level potential. 30M+ investors trust Moby to find it first. Get the pick. Tap here. Management noted that traffic momentum improved throughout the second quarter, ending the final period with positive traffic. While cautious about 'getting over their skis,' leadership expressed confidence in the current trajectory reflected in the reaffirmed guidance. The company will enter a 'pause' period for refranchising to ensure the seamless transition of the 116 restaurants to new partners. Management confirmed significant outside interest for further deals but emphasized execution of current transactions as the immediate priority. Management declined to provide specific interest rate targets but acknowledged that current rates in the mid-teens are the baseline they aim to improve upon. The goal of the refinancing is to leverage the improved balance sheet post-refranchising to secure better terms and financial flexibility.

ENGLEWOOD, Colo., Aug. 12, 2026 /PRNewswire/ -- Red Robin Gourmet Burgers, Inc. (NASDAQ: RRGB) ("Red Robin" or the "Company"), a casual dining restaurant chain serving an innovative selection of high-quality gourmet burgers in a family-friendly atmosphere, today reported financial results for the fiscal second quarter ended July 12, 2026. Chief Executive Officer Comments "Our second quarter delivered meaningful operating and financial improvement as we continue our disciplined execution of our First Choice plan," said Dave Pace, Red Robin's President and Chief Executive Officer. "Our restaurant teams remained focused on delivering exceptional hospitality and operational excellence, resulting in the strongest second quarter traffic and restaurant-level operating profit margins in three years." Mr. Pace continued, "During the quarter, we announced three refranchising agreements, representing a significant capital infusion of $96 million in gross proceeds, which provides us financial flexibility to refinance our debt and support our long-term strategic priorities." Second Quarter 2026 Financial Summary: The following table presents financial results for the fiscal second quarter 2026, compared to results from the same period in 2025 ($ in millions except per share data): Second Quarter 2026 Commentary Comparable restaurant revenue increased 1.3%. This included a 0.2% decrease in guest traffic, and a 1.5% increase in average guest check, representing our best quarterly traffic results since the first quarter of 2023. Restaurant level operating profit margin of 14.7%, a 20 basis point improvement from the second quarter of 2025 and the highest second quarter margin since 2022. This improvement was primarily driven by higher average guest check and the benefits of efficiency initiatives offsetting the impact of inflation. Adjusted EBITDA of $18.9 million for the second quarter of 2026, driven by increased selling expenses supporting our Big Yummm value platform through our First Choice marketing strategy. Balance Sheet and Liquidity As of July 12, 2026, the Company had outstanding borrowings under its credit facility of $167.2 million and liquidity of approximately $47.8 million, including cash and cash equivalents and available borrowing capacity under its credit facility. Refranchising Update During the second quarter, the Company announced three separate refranchising agreements with experienced franchise operators for the sale of 116 company-owned restaurants, expected to generate $96.0 million of gross proceeds. The transactions are expected to close during the third quarter, subject to customary closing conditions, and represent continued execution of the Company's First Choice plan, strengthening the balance sheet, reducing debt, and supporting critical investments. Outlook for Fiscal 2026 and Guidance Policy The Company is reaffirming its previously issued fiscal 2026 guidance, presented below. This guidance does not contemplate any impacts from the announced refranchising transactions due to uncertainty with the timing of the completion of the transactions. The Company expects to update guidance upon completion of these transactions. The projections are as of this date and the Company assumes no obligation to update or supplement this information. Comparable Restaurant Revenue growth, excluding deferred loyalty revenue, of 0.5% to 1.5%; Restaurant level operating profit of approximately 13.0%; Adjusted EBITDA of $70 million to $73 million; Capital expenditures of $25 million to $30 million. Providing income (loss) from operations and net income (loss) guidance is potentially misleading and not practical given the difficulty of projecting event-driven transactional and other non-core operating items. As such, we do not present a reconciliation of forecasted non-GAAP measures to the corresponding GAAP measures. Investor Conference Call and Webcast Red Robin will host an investor conference call to discuss its second quarter of 2026 results, and outlook for fiscal 2026 today at 4:30 p.m. ET. The conference call can be accessed live over the phone by dialing 201-689-8560, which will be answered by an operator or by clicking Call Me. The conference call should be accessed at least 10 minutes prior to its scheduled start. A replay will be available from approximately two hours after the end of the call and can be accessed by dialing 412-317-6671; the conference ID is 13761113. The replay will be available through Wednesday, August 19, 2026. The call will be webcast live and later archived from the Company's Investor Relations website. Red Robin Gourmet Burgers, Inc. (NASDAQ: RRGB) Red Robin Gourmet Burgers, Inc. (www.redrobin.com), is a casual dining restaurant chain founded in 1969 that operates through its wholly-owned subsidiary, Red Robin International, Inc., and under the trade name, Red Robin Gourmet Burgers and Brews. We believe nothing brings people together like burgers and fun around our table, and no one makes moments of connection over craveable food more memorable than Red Robin. We serve a variety of burgers and mainstream favorites to guests of all ages in a casual, playful atmosphere. In addition to our many burger offerings, Red Robin serves a wide array of salads, appetizers, entrees, desserts, signature beverages and Donatos® pizza at select locations. It's easy to enjoy Red Robin anywhere with online ordering available for to-go, delivery and catering. Sign up for the royal treatment by joining Red Robin Royalty® today and enjoy Bottomless perks and delicious rewards across nearly 500 Red Robin locations in the United States and Canada, including those operating under franchise agreements. Red Robin… YUMMM®! Forward-Looking Statements Forward-looking statements in this press release and in today's conference call regarding the Company's future performance; our "First Choice" plan, momentum, and the anticipated impacts thereof; our expectations regarding our targeted marketing strategy and ability to drive sales and traffic; pricing and value offerings; anticipated capital deployment initiatives; our capital structure initiatives including refinancing; our pending refranchising transactions and initiatives; our ability to gain and sustain efficiency in our G&A, labor, and operations to deliver growth in profitability; changes to our restaurant portfolio; our restaurant refresh program and technology investments; and statements under the heading "Outlook for Fiscal 2026 and Guidance Policy," including with respect to comparable restaurant revenue growth, restaurant level operating profit, capital expenditures and Adjusted EBITDA; and all other statements that are not historical facts are made under the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. These statements are based on assumptions believed by the Company to be reasonable and speak only as of the date on which such statements are made. Without limiting the generality of the foregoing, words such as "expect," "believe," "anticipate," "intend," "plan," "project," "could," "should," "will," "outlook" or "estimate," or the negative or other variations thereof or comparable terminology are intended to identify forward-looking statements. Except as required by law, the Company undertakes no obligation to update such statements to reflect events or circumstances arising after such date and cautions investors not to place undue reliance on any such forward-looking statements. Forward-looking statements are subject to various risks and uncertainties that could cause actual results to differ materially from those described in the statements, including but not limited to the following: the effectiveness of the Company's strategic initiatives, including our "First Choice" plan, labor and service models, and operational improvement initiatives and our ability to execute on such strategic initiatives; the global and domestic economic and geopolitical environment; our ability to effectively compete in the industry and attract and retain guests; our ability to extend or refinance our maturing indebtedness; the adequacy of cash flows and the cost and availability of capital or credit facility borrowings; our ability to service our debt and comply with the covenants in our credit facility; a privacy or security breach or a failure of our information technology systems; the effectiveness and timing of the Company's marketing and branding strategies and impact on reputation, including the loyalty program and social media platforms; changes in consumer preferences; costs associated with our lease obligations, including those incurred through closures and sale-leaseback transactions, as well as potential contingent lease liability; changes in cost and availability of commodities and the uncertain impact of tariffs or other potential disruptions in the supply chain; interruptions in the delivery of food and other products from third parties; pricing increases and labor costs; changes in consumer behavior or preference; aging technology infrastructure; our ability to successfully complete tactical refranchising initiatives, including our pending refranchising transactions, and on favorable terms; maintaining and improving our existing restaurants; potential acquisitions, dispositions, or refranchising of our restaurants; our geographic concentration in the Western United States; the retention of our management team; our compensation strategy including availability of equity-based compensation for our management team; our ability to recruit, staff, train, and retain our workforce; operating conditions, including adverse weather conditions, natural disasters, pandemics, and other events affecting the regions where our restaurants are operated; actions taken by our franchisees that could harm our business or reputation; negative publicity regarding food safety or health concerns; protection of our intellectual property rights; changes in laws and regulations affecting the operation of our restaurants; volatility in our stock price; and an increase in litigation or legal claims by team members, franchisees, customers, vendors, stockholders, and others. These factors should not be construed as exhaustive and should be read in conjunction with other cautionary statements and risk factors described from time to time in the Company's Form 10-K, Form 10-Q, and Form 8-K reports (including all amendments to those reports) filed with the U.S. Securities and Exchange Commission. Comparable Restaurant Revenue The following table presents the percentage change in comparable restaurant revenue in the second quarter of fiscal 2026: Reconciliation of Non-GAAP Results to GAAP Results In addition to the results provided in accordance with accounting principles generally accepted in the United States of America ("GAAP") throughout this press release, the Company has provided certain non-GAAP measures, which present operating results on an adjusted basis. These are supplemental measures of performance that are not required by or presented in accordance with GAAP and include the following: (i) Restaurant level operating profit, (ii) net income (loss) before interest expense, net, income taxes, and depreciation and amortization ("EBITDA"), (iii) adjusted EBITDA, and (iv) adjusted net income (loss) and adjusted net income (loss) per share - diluted. We believe that our use of non-GAAP financial measures permits investors to assess the operating performance of our business relative to our performance based on GAAP results and relative to other companies within the restaurant industry by isolating the effects of certain items that may vary from period to period without correlation to core operating performance or that vary widely among similar companies. Management believes this supplemental information will assist with comparisons of past and future financial results against the present financial results presented herein. Restaurant Level Operating Profit The Company believes restaurant level operating profit is an important measure for management and investors because it is widely regarded in the restaurant industry as a useful metric by which to evaluate restaurant level operating efficiency and performance. The Company defines restaurant level operating profit to be income from operations less franchise revenue and other revenue, plus other (gains) charges, net, selling, general and administrative, and depreciation and amortization. The measure includes restaurant level occupancy costs that include fixed rents, percentage rents, common area maintenance charges, real estate and personal property taxes, general liability insurance, and other property costs, but excludes depreciation and amortization expense, substantially all of which is related to restaurant level assets, because such expenses represent historical sunk costs which do not reflect current cash outlay for the restaurants. The measure also excludes costs associated with selling, general and administrative functions, as well as other (gains) charges, net because these costs are non-operating and therefore not related to the ongoing operations of its restaurants. Restaurant level operating profit is not a measurement determined in accordance with GAAP and should not be considered in isolation, or as an alternative, to income (loss) from operations as an indicator of financial performance. Restaurant level operating profit as presented may not be comparable to other similarly titled measures of other companies in the Company's industry. The following table reconciles income (loss) from operations to restaurant level operating profit in thousands, except as noted, and in percent of total revenue for the periods presented: EBITDA and Adjusted EBITDA We define EBITDA as net income (loss) before interest expense, net, income taxes, and depreciation and amortization. Adjusted EBITDA is EBITDA, further adjusted to exclude the impact of non-operating items including changes in estimates, asset impairments, litigation contingencies, gains (losses) on debt extinguishment, restaurant and office closure costs, gains (losses) on restaurant sales, severance and executive transition costs, stock-based compensation expense and other non-cash or discrete items. EBITDA and adjusted EBITDA are supplemental measures of our performance that we believe give the reader additional insight into the ongoing operational results of the Company. The following table reconciles net income (loss) to adjusted EBITDA in thousands for the period presented: The following table reconciles net income (loss) to adjusted EBITDA for each quarter of fiscal 2026 to date: Adjusted Net Income (loss) Per Diluted Share We define adjusted net income (loss) per diluted share as net income (loss) excluding the impact of non-operating items including changes in estimates, asset impairments, litigation contingencies, gains (losses) on debt extinguishment, restaurant and office closure costs, gains (losses) on restaurant sales, severance and executive transition costs, stock-based compensation expense and other non-cash or discrete items; net of income tax impacts. Adjusted net income (loss) per share - diluted is a supplemental measure of our performance that we believe gives the reader additional insight into the ongoing operational results of the Company. The following table reconciles net income (loss) to adjusted net income (loss) and adjusted net income (loss) per share - diluted for the period presented: View original content:https://www.prnewswire.com/news-releases/red-robin-gourmet-burgers-inc-reports-second-quarter-of-fiscal-2026-results-302849964.html

Red Robin Gourmet Burgers, Inc. RRGB is scheduled to report second-quarter fiscal 2026 results on Aug. 12, after the closing bell.RRGB’s earnings beat the Zacks Consensus Estimate in two of the trailing four quarters, and missed on the remaining two occasions, the average surprise being 32.4%. The Zacks Consensus Estimate for fiscal second-quarter earnings per share (EPS) is pegged at 28 cents, indicating a rise of 7.7% from 26 cents reported in the year-ago quarter. Red Robin Gourmet Burgers, Inc. price-eps-surprise | Red Robin Gourmet Burgers, Inc. Quote For revenues, the consensus mark is pegged at $276.1 million. The metric suggests a decline of 2.7% from the year-ago quarter’s figure.Let us take a look at how things might have shaped up in the quarter to be reported. Red Robin’s fiscal second-quarter performance is likely to have benefited from continued traction in its First Choice strategic plan, particularly initiatives aimed at driving traffic through value offerings, menu innovation and targeted marketing. Management highlighted improving underlying traffic trends in the previous quarter and noted that its value-focused initiatives were supporting incremental traffic and trial despite a challenging consumer environment.The Big Yummm value platform is likely to have remained an important traffic driver in the quarter under review. The expanded platform offers guests a range of meal choices across different price points and includes burgers, chicken sandwiches, Donatos Pizza and wraps, along with bottomless sides and beverages. The platform’s emphasis on affordability and variety is likely to have helped Red Robin remain relevant among value-conscious consumers and support guest visits.Menu innovation is expected to have supported quarterly performance. Red Robin’s barbell strategy, combining value offerings with premium products, along with a strong response to Towering Sliders and continued product innovation, is likely to have aided engagement, frequency and average check. Additionally, targeted marketing is also likely to have supported traffic and brand engagement. Red Robin’s data-driven First Choice strategy, including locally relevant messaging and higher marketing spending, is expected to have improved awareness, engagement and customer acquisition.However, revenues are likely to have been hurt by a smaller company-operated restaurant base. Restaurant closures were a key reason for the revenue decline in the fiscal first quarter, and management indicated that closures would continue at a relatively similar pace through the remainder of fiscal 2026. The reduced number of operating restaurants is therefore expected to have remained a major drag on fiscal second-quarter sales. Also, soft guest traffic and a challenging consumer environment may also have weighed on revenues. For the quarter to be reported, our model predicts restaurant revenues to decrease 2.9% year over year to $271.3 million.MarginsOn the profitability front, continued operational discipline and labor-efficiency initiatives are expected to have supported restaurant-level margins. The company’s managing-partner model, improved scheduling practices and tighter labor management have contributed to better restaurant-level efficiency while management has remained focused on protecting guest satisfaction. In addition, Red Robin has been leveraging AI tools to assist managing partners with labor scheduling, food-cost management and guest-service delivery. For the fiscal second quarter, our model expects total costs of sales to decrease year over year by 2.8% to $63.3 million.However, commodity inflation is likely to have remained a significant margin headwind. Although Red Robin has locked a portion of its commodity requirements, major categories such as beef and dairy remain exposed to market-price fluctuations. Elevated input costs may therefore have partly offset benefits from labor efficiencies, pricing and other cost-saving initiatives. Our proven model doesn’t predict an earnings beat for Red Robin this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. Unfortunately, this is not the case here, as you will see below.RRGB’s Earnings ESP: Red Robin has an Earnings ESP of 0.00%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.RRGB’s Zacks Rank: Red Robin currently has a Zacks Rank #3. Here are a few stocks from the Zacks Retail-Wholesale sector, which, according to our model, have the right combination of elements to post an earnings beat this reporting cycle.CAVA Group, Inc. CAVA currently has an Earnings ESP of +8.33% and a Zacks Rank of 3. You can see the complete list of today’s Zacks #1 Rank stocks here.In the to-be-reported quarter, CAVA’s earnings are expected to increase 12.5% year over year. CAVA’s earnings beat the Zacks Consensus Estimate in three of the trailing four quarters and missed on one occasion, with the average surprise being 16.6%.Brinker International, Inc. EAT currently has an Earnings ESP of +0.12% and a Zacks Rank of 3.In the to-be-reported quarter, Brinker’s earnings are expected to register a 23.3% year-over-year decline. EAT’s earnings surpassed estimates in all of the trailing four quarters, with the average surprise being 6.8%.Cracker Barrel Old Country Store, Inc. CBRL currently has an Earnings ESP of +133.33% and a Zacks Rank of 3.In the to-be-reported quarter, Cracker Barrel’s earnings are expected to register an 83.8% year-over-year decline. Cracker Barrel’s earnings surpassed estimates in three of the trailing four quarters and missed on one occasion, with the average surprise being 128.6%. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Red Robin Gourmet Burgers, Inc. (RRGB) : Free Stock Analysis Report Cracker Barrel Old Country Store, Inc. (CBRL) : Free Stock Analysis Report Brinker International, Inc. (EAT) : Free Stock Analysis Report CAVA Group, Inc. (CAVA) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). 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This article first appeared on GuruFocus. Total Revenue: $378 million, a decrease of $14 million from 2025. Same-Store Sales: Down 0.6%, with a 1.0% increase in average check and a 1.6% decrease in traffic. Restaurant Operating Margin: Improved by 50 basis points to 14.8%, the highest Q1 margin in five years. Labor Efficiency: Achieved 130 basis points of year-over-year savings, with labor percentage at 35.7%. Adjusted EBITDA: $27.3 million, a decrease of $0.6 million from the first quarter of 2025. General and Administrative Costs: Reduced to $23 million from $27 million in the first quarter of 2025. Selling Expenses: Increased to $13 million from $9 million in the first quarter of 2025. Cash and Equivalents: $24 million, with $10 million in restricted cash and $17 million available borrowing capacity. Capital Expenditures Outlook: Expected to be between $25 million and $30 million for 2026. Warning! GuruFocus has detected 4 Warning Signs with RRGB. Is RRGB fairly valued? Test your thesis with our free DCF calculator. Release Date: May 19, 2026 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Red Robin Gourmet Burgers Inc (NASDAQ:RRGB) reported its strongest traffic performance since Q1 2023 and highest Q1 restaurant operating profit margin since 2021. The Big Young Value platform continues to resonate with guests, contributing to high satisfaction scores and strong results across the system. Operational discipline and targeted marketing efforts are improving reach and brand awareness, driving guest engagement and frequency. Labor efficiency initiatives resulted in approximately 130 basis points of year-over-year savings, with labor percentage at its lowest in three years. The company is seeing meaningful adoption of AI tools, optimizing labor scheduling, managing food costs, and enhancing guest service delivery, contributing to operational efficiencies. Same-store sales were down 0.6%, with a 1.6% decrease in traffic despite a 1.0% increase in average check. Total revenues in Q1 decreased by $14 million from 2025, primarily due to restaurant closures and a decrease in comp sales. Adjusted EBITDA decreased by $0.6 million versus the first quarter of 2025. The company is facing inflationary pressures and lower traffic, which offset some of the benefits from cost savings and labor efficiencies. The economic environment remains challenging, requiring a deliberate focus on highlighting value and disciplined approach to average check. Q: Can you elaborate on the acceleration in same-store sales and traffic trends, particularly the impact of the Big Yum! deals and targeted marketing efforts? A: David Pace, CEO, explained that the Big Yum! menu launch performed better than expected, contributing to strong sales. Christopher Meyer, Interim CFO, added that increased marketing spend year-over-year, with a focus on targeted marketing, has been effective and will continue throughout the year. Q: How are labor efficiencies progressing, and is there room for further improvement? A: David Pace, CEO, credited the operations team for managing labor efficiently. He noted that while they are approaching optimal levels, they will continue to seek efficiencies without compromising guest satisfaction. Christopher Meyer, Interim CFO, mentioned that they started seeing benefits from labor efficiencies in Q2 of the previous year. Q: What are your expectations for menu pricing and innovation for the rest of 2026? A: Mark Graff, CFO, stated that pricing will remain in the 3% to 3.5% range. David Pace, CEO, emphasized a balance between value offerings and new product innovations, such as the slider tower, to maintain consumer interest and drive traffic. Q: Can you provide insights into store closures and their impact on revenues and EBITDA? A: Mark Graff, CFO, reported six store closures in Q1, with a total of about 20 expected for the year. The closures are anticipated to impact sales by approximately $40 million, but the effect on restaurant-level operating profit (RLOP) is expected to be neutral. Q: How are you managing commodity costs, particularly beef, and what is the outlook for inflation? A: Mark Graff, CFO, mentioned that 60% of their commodity needs for 2026 are locked, excluding beef, which remains a floating cost. The overall basket inflation is expected to be around 3.5%. For the complete transcript of the earnings call, please refer to the full earnings call transcript.