Red Robin Gourmet Burgers 2025 Q2 Earnings Profitable Turnaround with 142.1% Net Income Surge

Red Robin Gourmet Burgers reported its fiscal 2025 Q2 earnings on August 14, 2025. The company returned to profitability with a notable improvement in earnings despite a decline in revenue. Red Robin maintained its fiscal 2025 guidance for revenue and restaurant-level profit margin, reflecting confidence in its strategic initiatives.

Red Robin Gourmet Burgers reported total revenue of $282.49 million for the second quarter of 2025, a decrease of 5.4% compared to $298.74 million in the same period of 2024. Despite the revenue decline, the company returned to profitability with an EPS of $0.22 in 2025 Q2, reversing from a loss of $0.61 per share in 2024 Q2. The net income also showed a remarkable turnaround, reaching $3.99 million in 2025 Q2, a 142.1% positive swing from a net loss of $9.49 million in 2024 Q2.

The stock price of Red Robin Gourmet Burgers edged down 1.14% during the latest trading day but climbed 7.04% during the most recent full trading week and rose 4.47% month-to-date. However, the strategy of buying Red Robin shares 30 days after a quarterly earnings report with a revenue increase resulted in poor performance. The strategy generated a return of -25.40%, compared to a 65.47% return for the benchmark. The investment exposed investors to risk, with a Sharpe ratio of -0.14 and a maximum drawdown of 0.00%, indicating it failed to capitalize on the revenue increase.

Dave Pace, Red Robin’s President and CEO, emphasized the company’s execution of strategic initiatives under the First Choice plan, noting early signs of progress. He highlighted the success of the Big YUMMM Burger Deal in boosting traffic and expressed confidence in the multi-layered approach to sustainable growth. He also praised the team’s operational performance, which led to a significant increase in restaurant-level operating profit margin. He expressed optimism about using capital flexibility to accelerate investments while maintaining profitability.

The company updated its fiscal 2025 guidance, maintaining total revenue of approximately $1.2 billion, a restaurant-level operating profit margin of 12.0% to 13.0%, and Adjusted EBITDA of $60 to $65 million. Capital expenditures are expected to remain around $30 million. The CEO noted an anticipated 3% to 4% decline in comparable restaurant sales for the remainder of fiscal 2025. The company does not provide guidance for operating income or net income due to the unpredictability of non-core items.

Additional News:
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