Burger chain Red Robin's Q3 revenue declines, but beats estimates

Red Robin Gourmet Burgers

10/11/2025 21:39

Overview

Red Robin fiscal Q3 revenue decreases but beats analyst expectations

Company's adjusted EBITDA for Q3 exceeds analysts' expectations

Net loss improves to $18.4 mln from $18.9 mln last year

Outlook

Company maintains fiscal 2025 revenue guidance of approximately $1.2 bln

Red Robin anticipates 4th qtr comparable restaurant sales to decline ~3%

Company raises fiscal 2025 adjusted EBITDA guidance to at least $65 mln

Result Drivers

BIG YUMMM PROMOTION - Sequential traffic improvement driven by Big YUMMM promotion, per CEO Dave Pace

LABOR EFFICIENCY - Year-over-year restaurant-level operating profit margin improved by 90 basis points due to labor efficiency improvements

OPERATIONAL EFFICIENCIES - Improved topline and efficiencies led to adjusted EBITDA exceeding expectations

Key Details

Metric
Beat/Miss
Actual
Consensus Estimate
Q3 Revenue
Beat
$260.91 mln
$256.70 mln (4 Analysts)
Q3 Adjusted EPS
Beat
-$0.70
-$0.76 (4 Analysts)
Q3 EPS
-$1.03
Q3 Net Income
-$18.42 mln
Q3 Adjusted EBITDA
Beat
$7.60 mln
$4.41 mln (3 Analysts)
Q3 Income From Operations
-$12.11 mln


Analyst Coverage

The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 3 "strong buy" or "buy", 1 "hold" and no "sell" or "strong sell"

The average consensus recommendation for the restaurants & bars peer group is "buy"

Wall Street's median 12-month price target for Red Robin Gourmet Burgers Inc is $11.00, about 57.4% above its November 7 closing price of $4.69

Press Release: ID:nPn2ZhnFCa

For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact RefinitivNewsSupport@thomsonreuters.com.

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)