Red Robin (NASDAQ: RRGB) Q1 2025 Earnings Breakdown | 5/30/2025 Highlights & Market Impact

Red Robin reported Q1 2025 total revenues of $392.4 million, up from $388.5 million in Q1 2024, driven by a 3.1% increase in comparable restaurant revenue (6.8% menu price increase offset by a 3.5% traffic decline). Restaurant-level operating profit margin improved to 14.3%, up 330 basis points, due to enhanced labor efficiency. Adjusted EBITDA rose to $27.9 million from $13.4 million, reflecting cost savings and menu pricing benefits. The company repaid $17.8 million in debt, ending with $171.7 million outstanding and $24.2 million in cash. FY 2025 guidance includes total revenue of $1.21-$1.23 billion, flat comparable sales, 12-13% restaurant-level profit margin, adjusted EBITDA of $60-$65 million, and $30 million in capex. New CEO Dave Pace, transitioning from former CEO GJ Hart, emphasized continuing the Northstar plan’s focus on operational excellence, guest experience, and loyalty program growth (15.3 million members). Priorities include sustaining operational gains, driving traffic growth through marketing (with new marketing leader Russ Klein), reducing debt, and reinvesting in restaurant facilities. Despite strong Q1 results, guidance was tempered due to expected ongoing traffic challenges and tariff-related cost pressures, with no planned menu price increases.