Latest news with #RedRobin
Yahoo
8 hours ago
- Business
- Yahoo
Longtime Burger Chain Red Robin Closing 15 Locations Across the U.S.
There's something comforting and familiar about dining at a longtime burger restaurant. The U.S. has plenty of established burger chains, and those restaurants make sure the traditional hamburger is available to Americans nationwide. There are 84,336 burger restaurants in the U.S. as of 2025, according to IBIS World, so there's a lot of competition in that space. Also, the number of burger restaurants in the U.S. grew 0.9% per year on average between 2019 and 2024, IBIS World states. So, the burger industry is a competitive one, and now, one longtime burger chain has announced that it's closing restaurants across the U.S. this year. Red Robin Gourmet Burgers has already closed six of its company-owned restaurants in the first quarter and one franchise location. Now, the company plans to close down eight more company-owned spots in 2025, Todd Wilson, executive vice president and chief financial officer, announced on May 29 during an earnings call. On the company earnings call, Wilson said Red Robin currently has 401 company-owned restaurants and 90 franchise locations. By the end of the year, he expects that number to be 393 company-owned restaurants. Wilson did not state which locations are scheduled to close or reveal any plans of closing more franchise locations. Also, Red Robin, which was founded in 1969, did not open any new locations in the first quarter of 2025 or 2024, the earnings report stated. In April, Red Robin Gourmet Burgers named a new president and CEO in David A. Pace. He commented that Red Robin is making a "comeback," but it's not there yet. "We are far from claiming victory and there is still more work to be done as we continue the comeback journey of Red Robin," Pace said. On a positive note, Wilson said that he doesn't expect any additional menu price increases for 2025. "We anticipate absorbing the current expected impact of tariffs as we prioritize maintaining value for our guests," he said. In the same earnings report, Red Robin also posted unexpected profit, which is a good sign for the Burger Chain Red Robin Closing 15 Locations Across the U.S. first appeared on Men's Journal on May 31, 2025
Yahoo
2 days ago
- Business
- Yahoo
Red Robin ‘far from claiming victory' despite comps growth
This story was originally published on Restaurant Dive. To receive daily news and insights, subscribe to our free daily Restaurant Dive newsletter. Red Robin had a strong first quarter as the casual dining chain posted 3.1% comparable restaurant revenue growth, according to an earnings release. Despite the strong showing, 'we are far from claiming victory,' CEO and President David Pace said in the release, adding there "is still more work to be done as we continue the comeback journey." This strong growth was driven by long-term investments in labor, loyalty and equipment, GJ Hart, former CEO and current advisor, said on the brand's earnings call. Hart, who announced his resignation last month, led the brand through the first years of a turnaround plan. Pace said Red Robin's operational foundations are strong, but the brand needs to extend and consolidate changes that have included new flat-top grills, increased staffing and efforts to encourage managers to visit more tables. The CEO also said Red Robin still has room to improve the guest experience and will focus on marketing in the coming year. Kevin Mayer, the brand's CMO, departed in February, according to SEC filings. The brand has taken measures to fill Mayer's shoes. 'Recently, Russ Klein has joined our team for a one year term to help us build our marketing foundation and strategy,' Pace said. 'Russ brings us a widely recognized track record of success in effectively reconnecting well known brands with their customer bases.' Klein is the former CEO of the American Marketing Association, and held previous leadership posts at Arby's and Burger King, according to his LinkedIn profile. A firm marketing strategy will be particularly important for the brand. Casual chains, most notably Chili's, have done very well in the current, value-focused environment by marketing themselves as affordable competitors to QSRs. Chili's massive traffic leaps of late followed several quarters of solid same-store sales growth, also driven by a long turnaround effort. There is some evidence from recent quarters that many consumers are looking to dine more on weekends and special occasions. This is especially true for on-premise dining, and consumers are trading up from QSRs to more experiential restaurant formats, which offer a form of value that's not captured neatly in pricing. Red Robin's strong performance in the quarter pushed its net income to $1.2 million, up from a $9.5 million loss in the year-ago quarter. The brand sold off three company-owned restaurants for $5.8 million, using the proceeds to pay down debt. Still, the brand's leaders sought to manage expectations for the rest of the year, with CFO Todd Wilson noting that Q2 will lap the relaunch of its loyalty program last year. This means same-store sales growth will face a 240 basis point headwind next quarter, making it unlikely that Red Robin will repeat its comps growth in the near future. Recommended Reading GJ Hart resigns as Red Robin CEO Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
3 days ago
- Business
- Yahoo
Why Red Robin (RRGB) Stock Is Trading Up Today
Shares of burger restaurant chain Red Robin (NASDAQ:RRGB) jumped 66.2% in the afternoon session after the company reported impressive first quarter 2025 results which blew past analysts' sales, EPS and EBITDA expectations. In addition, its full-year EPS guidance trumped Wall Street's estimates. Comparable restaurant revenue rose 3.1%, supported primarily by menu price increases that offset a dip in traffic. Restaurant-level operating profit margin climbed nearly 30% compared to last year, helped by reduced food and labor costs. This expansion in profit margin was a key reason the company's adjusted earnings per share swung from a loss to a gain. Despite the upbeat quarter, Red Robin trimmed its full-year revenue forecast, pointing to softer sales expectations ahead. Zooming out, this was a strong quarter as nearly all investors expected an earnings per share loss. Is now the time to buy Red Robin? Access our full analysis report here, it's free. Red Robin's shares are extremely volatile and have had 58 moves greater than 5% over the last year. But moves this big are rare even for Red Robin and indicate this news significantly impacted the market's perception of the business. The previous big move we wrote about was 3 days ago when the stock gained 6.6% after the major indices rebounded (Nasdaq +2.0%, S&P 500 +1.5%) as President Trump postponed the planned 50% tariff on European Union imports, shifting the start date to July 9, 2025. Companies with substantial business ties to Europe likely had some relief as the delay reduced near-term cost pressures and preserved cross-border demand. Red Robin is down 10.1% since the beginning of the year, and at $5.10 per share, it is trading 42.6% below its 52-week high of $8.89 from June 2024. Investors who bought $1,000 worth of Red Robin's shares 5 years ago would now be looking at an investment worth $367.70. Here at StockStory, we certainly understand the potential of thematic investing. Diverse winners from Microsoft (MSFT) to Alphabet (GOOG), Coca-Cola (KO) to Monster Beverage (MNST) could all have been identified as promising growth stories with a megatrend driving the growth. So, in that spirit, we've identified a relatively under-the-radar profitable growth stock benefiting from the rise of AI, available to you FREE via this link. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Bloomberg
3 days ago
- Business
- Bloomberg
Stock Movers: Dell, Gap, Red Robin
On this episode of Stock Movers: - Dell Technologies (DELL) is higher this morning after reporting a profit outlook for the year that beat analysts' estimates. The company reported a significant increase in orders for servers to run AI networks, with $12.1 billion in AI orders in the quarter ended May 2, surpassing the entirety of shipments in all of FY25. Dell expects profitability to improve in its computer and servers-and-storage businesses, and has accelerated share repurchases, which will boost profit on a per-share basis. - Gap (GPS) is sinking on a tariff warning. The company predicted a tariff impact of up to $300 million and revealed weakness at Banana Republic and Athleta. Gap warned of a $250 million to $300 million hit from tariffs, but kept its guidance stable and said it has strategies to mitigate more than half of that cost. - Costco (COST) shares nudged higher after the bell Thursday after the big-box retailer posted third quarter earnings per share that beat the average analyst estimate. The company is working well to soften tariff exposure and can gain further market share moving forward, according to some analysts. - Red Robin (RRGB) shares are soaring this morning after the burger chain reported adjusted earnings per share of 19c for the first quarter, whereas analysts were expecting a loss of 51c per share. The company also reaffirmed its adjusted Ebitda guidance for the full year.
Yahoo
3 days ago
- Business
- Yahoo
Compared to Estimates, Red Robin (RRGB) Q1 Earnings: A Look at Key Metrics
For the quarter ended March 2025, Red Robin (RRGB) reported revenue of $392.35 million, up 1% over the same period last year. EPS came in at $0.19, compared to -$0.80 in the year-ago quarter. The reported revenue represents a surprise of +1.28% over the Zacks Consensus Estimate of $387.4 million. With the consensus EPS estimate being -$0.57, the EPS surprise was +133.33%. While investors closely watch year-over-year changes in headline numbers -- revenue and earnings -- and how they compare to Wall Street expectations to determine their next course of action, some key metrics always provide a better insight into a company's underlying performance. Since these metrics play a crucial role in driving the top- and bottom-line numbers, comparing them with the year-ago numbers and what analysts estimated about them helps investors better project a stock's price performance. Here is how Red Robin performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts: Number of restaurants - Total: 491 compared to the 497 average estimate based on three analysts. Comparable restaurant revenue - YoY change: 3.1% versus 3.1% estimated by three analysts on average. Number of restaurants - Franchised: 90 versus 93 estimated by two analysts on average. Number of restaurants - Company-owned: 401 compared to the 405 average estimate based on two analysts. Revenues- Restaurant revenue: $385.81 million versus the three-analyst average estimate of $376.61 million. The reported number represents a year-over-year change of +1.9%. View all Key Company Metrics for Red Robin here>>>Shares of Red Robin have returned +14.4% over the past month versus the Zacks S&P 500 composite's +6.7% change. The stock currently has a Zacks Rank #3 (Hold), indicating that it could perform in line with the broader market in the near term. 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 Investment Research
