Red Robin Narrows Losses Despite Revenue Dip

TL;DR

**Red Robin is still bleeding cash, and while losses are narrowing, the revenue dip is a red flag for this struggling burger chain.**

AI Summary

RED ROBIN GOURMET BURGERS INC (RRGB) reported a net loss of $18.419 million for the twelve weeks ended October 5, 2025, a slight improvement from the $18.876 million net loss in the prior-year period. For the forty weeks ended October 5, 2025, the net loss was $13.177 million, a significant improvement from the $37.825 million loss in the same period last year. Total revenues decreased to $265.128 million for the twelve weeks, down from $274.638 million, primarily due to a decline in restaurant revenue from $270.605 million to $260.909 million. However, franchise revenue saw a modest increase from $3.007 million to $3.265 million in the twelve-week period. The company's total assets decreased from $641.314 million at December 29, 2024, to $574.219 million at October 5, 2025, while total liabilities also decreased from $725.583 million to $670.309 million. Stockholders' deficit widened from $84.269 million to $96.090 million. Cash and cash equivalents declined from $30.651 million to $21.671 million during the period.

Why It Matters

Red Robin's continued net losses and declining revenue signal ongoing challenges in a highly competitive casual dining market, impacting investor confidence and potentially future expansion plans. The widening stockholders' deficit to $96.090 million indicates a deteriorating financial position, which could make it harder to secure financing or attract new capital. For employees, sustained losses could lead to cost-cutting measures, including layoffs or reduced benefits. Customers might see fewer promotions or menu changes as the company tries to optimize profitability. Competitors like Chili's or Applebee's, if showing stronger performance, could further pressure Red Robin's market share.

Risk Assessment

Risk Level: high — The company reported a net loss of $18.419 million for the twelve weeks ended October 5, 2025, and a total stockholders' deficit of $96.090 million, indicating a precarious financial position. Cash and cash equivalents decreased from $30.651 million to $21.671 million, and total current assets declined from $99.434 million to $79.884 million, suggesting liquidity concerns.

Analyst Insight

Investors should exercise extreme caution and consider divesting RRGB shares given the persistent net losses, declining revenues, and widening stockholders' deficit. Focus on companies demonstrating consistent profitability and revenue growth in the restaurant sector.

Financial Highlights

debt To Equity

-6.98

revenue

$941.182M

operating Margin

N/A

total Assets

$574.219M

total Debt

$172.353M

net Income

-$13.177M

eps

-$0.74

gross Margin

N/A

cash Position

$21.671M

revenue Growth

-2.3%

Revenue Breakdown

Key Numbers

• $18.419M — Net Loss (12 weeks) (Improved from $18.876M in prior year)
• $13.177M — Net Loss (40 weeks) (Improved from $37.825M in prior year)
• $265.128M — Total Revenues (12 weeks) (Decreased from $274.638M in prior year)
• $941.182M — Total Revenues (40 weeks) (Decreased from $963.333M in prior year)
• $96.090M — Total Stockholders' Deficit (Widened from $84.269M at December 29, 2024)
• $21.671M — Cash and Cash Equivalents (Decreased from $30.651M at December 29, 2024)
• 17,964,459 — Shares Outstanding (As of November 6, 2025)
• $574.219M — Total Assets (Decreased from $641.314M at December 29, 2024)
• $670.309M — Total Liabilities (Decreased from $725.583M at December 29, 2024)
• $1.03 — Basic Net Loss Per Share (12 weeks) (Improved from $1.20 in prior year)

Key Players & Entities

• RED ROBIN GOURMET BURGERS INC (company) — parent company
• RRGB (company) — ticker symbol
• Bloomberg (company) — publisher
• SEC (regulator) — filing authority
• Nasdaq (Global Select Market) (company) — stock exchange
• Financial Accounting Standards Board (company) — accounting standard setter
• Red Robin International, Inc. (company) — subsidiary
• One Big Beautiful Bill Act (other) — tax legislation
• Chili's (company) — competitor
• Applebee's (company) — competitor

FAQ

Risk Factors

• Dependence on Franchisees [medium — operational]: The company relies on its franchisees for a significant portion of its revenue. Any failure of franchisees to operate successfully or maintain brand standards could negatively impact RRGB's financial performance and reputation. The decrease in franchise revenue in the forty-week period to $10.940M from $12.635M indicates potential challenges in this area.
• Stockholders' Deficit [high — financial]: RRGB continues to operate with a significant stockholders' deficit, which widened from $84.269M to $96.090M. This indicates that liabilities exceed assets, potentially limiting the company's ability to secure financing and impacting investor confidence.
• Declining Cash Position [high — financial]: Cash and cash equivalents have decreased from $30.651M to $21.671M. This reduction in liquidity could strain the company's ability to meet short-term obligations and fund operations, especially given the ongoing net losses.
• Competitive Restaurant Industry [medium — market]: The restaurant industry is highly competitive, with numerous players vying for consumer spending. RRGB faces challenges from both established chains and emerging concepts, which can pressure pricing and market share. The decline in total revenues to $265.128M for the twelve weeks ended October 5, 2025, reflects this competitive pressure.
• Lease Obligations [medium — operational]: The company has substantial operating lease liabilities, totaling $303.827M in operating lease assets and $303.887M in long-term portion of operating lease liabilities. Significant lease obligations can impact cash flow and financial flexibility, especially during periods of revenue decline.
• Food Safety and Health Regulations [medium — regulatory]: As a restaurant operator, RRGB is subject to stringent food safety and health regulations. Non-compliance or incidents related to foodborne illnesses can lead to severe reputational damage, legal liabilities, and operational disruptions.
• Long-Term Debt [medium — financial]: The company has $172.353M in long-term debt. Servicing this debt, especially in conjunction with operating losses and a declining cash position, poses a financial risk and could limit future investment opportunities.

Industry Context

The casual dining sector, where Red Robin operates, faces intense competition from fast-casual and other restaurant formats. Consumers are increasingly seeking value, convenience, and unique experiences. Industry trends include a focus on digital ordering, delivery, and menu innovation to adapt to changing preferences. Profitability remains a challenge due to rising labor and food costs.

Regulatory Implications

Red Robin is subject to standard restaurant industry regulations, including food safety, labor laws, and health codes. Compliance is critical to avoid fines, legal action, and reputational damage. Changes in minimum wage laws or food safety standards could impact operating costs and require operational adjustments.

What Investors Should Do

1. Monitor same-store sales trends closely.
2. Analyze cost-saving initiatives.
3. Assess the impact of lease obligations on cash flow.
4. Evaluate the company's ability to manage its debt and equity structure.

Key Dates

• 2025-10-05: End of the twelve and forty-week periods — Reporting period for the condensed consolidated financial statements, showing net losses and revenue changes compared to the prior year.
• 2024-12-29: Prior fiscal year-end — Balance sheet comparison point for assets, liabilities, and stockholders' deficit.
• 2025-11-06: Shares Outstanding Date — Indicates the number of shares outstanding as of this date, relevant for per-share calculations.

Glossary

Stockholders' equity (deficit)

The net worth of a company, calculated as total assets minus total liabilities. A deficit means liabilities exceed assets. (RRGB has a significant and widening stockholders' deficit ($96.090M), indicating a negative net worth.)

Accumulated deficit

The cumulative net losses of a company since its inception, minus any cumulative net profits. (RRGB's accumulated deficit is $166.136M, reflecting its history of net losses.)

Operating lease assets, net

The value of assets leased by the company under operating lease agreements, recognized on the balance sheet. (RRGB has substantial operating lease assets ($303.827M), reflecting significant long-term rental commitments.)

Operating lease liabilities

The future payments a company is obligated to make under operating lease agreements. (RRGB has substantial long-term operating lease liabilities ($303.887M), representing significant future cash outflows.)

Treasury stock

Shares of a company's own stock that it has repurchased from the open market. (RRGB holds treasury stock valued at $144.772M, which reduces total stockholders' equity.)

Basic Net Loss Per Share

The net loss attributable to each outstanding share of common stock. (RRGB reported a basic net loss per share of $1.03 for the twelve weeks ended October 5, 2025.)

Year-Over-Year Comparison

Compared to the prior year, Red Robin has shown an improvement in net loss for both the twelve-week ($18.419M vs $18.876M) and forty-week ($13.177M vs $37.825M) periods. However, total revenues have declined, with restaurant revenue decreasing by 3.6% in the twelve-week period. Total assets and liabilities have also decreased, but the stockholders' deficit has widened from $84.269M to $96.090M, and cash reserves have fallen from $30.651M to $21.671M.

Key Financial Figures

• $0.001 — ange on which registered Common Stock, $0.001 par value RRGB Nasdaq (Global Select M

Filing Documents

• rrgb-20251005.htm (10-Q) — 1221KB
• rrgb-20251005xex102.htm (EX-10.2) — 93KB
• rrgb-20251005xex311.htm (EX-31.1) — 10KB
• rrgb-20251005xex312.htm (EX-31.2) — 10KB
• rrgb-20251005xex321.htm (EX-32.1) — 8KB
• 0001628280-25-051046.txt ( ) — 5040KB
• rrgb-20251005.xsd (EX-101.SCH) — 31KB
• rrgb-20251005_cal.xml (EX-101.CAL) — 58KB
• rrgb-20251005_def.xml (EX-101.DEF) — 128KB
• rrgb-20251005_lab.xml (EX-101.LAB) — 454KB
• rrgb-20251005_pre.xml (EX-101.PRE) — 298KB
• rrgb-20251005_htm.xml (XML) — 553KB

- FINANCIAL INFORMATION

PART I - FINANCIAL INFORMATION ITEM 1.

Financial Statements (unaudited)

Financial Statements (unaudited) 1 Condensed Consolidated Balance Sheets 1 Condensed Consolidated Statements of Operations and Comprehensive Income (Loss ) 2 Condensed Consolidated Statements of Stockholders' Equity (Deficit) 3 Condensed Consolidated Statements of Cash Flows 5 Notes to the Condensed Consolidated Financial Statements 6 ITEM 2.

Management's Discussion and Analysis of Financial Condition and Results of Operations

Management's Discussion and Analysis of Financial Condition and Results of Operations 15 ITEM 3.

Quantitative and Qualitative Disclosures About Market Risk

Quantitative and Qualitative Disclosures About Market Risk 30 ITEM 4.

Controls and Procedures

Controls and Procedures 30

- OTHER INFORMATION

PART II - OTHER INFORMATION ITEM 1.

Legal Proceedings

Legal Proceedings 31 ITEM 1A.

Risk Factors

Risk Factors 31 ITEM 2. Unregistered Sales of Equity Securities and Use of Proceeds 31 ITEM 5. Other Information 32 ITEM 6. Exhibits 33 Signature 34 i Table of Contents

— FINANCIAL INFORMATION

PART I — FINANCIAL INFORMATION

Financial Statements (unaudited)

ITEM 1. Financial Statements (unaudited) RED ROBIN GOURMET BURGERS, INC. CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) (in thousands, except for per share amounts) October 5, 2025 December 29, 2024 Assets: Current assets: Cash and cash equivalents $ 21,671 $ 30,651 Accounts receivable and other, net 12,568 19,688 Inventories 26,161 26,737 Prepaid expenses and other current assets 10,282 13,608 Restricted cash 9,202 8,750 Total current assets 79,884 99,434 Property and equipment, net 169,634 181,224 Operating lease assets, net 303,827 331,617 Intangible assets, net 9,635 11,064 Assets held for sale — 4,313 Other assets, net 11,239 13,662 Total assets $ 574,219 $ 641,314 Liabilities and stockholders ' equity (deficit): Current liabilities: Accounts payable $ 30,100 $ 29,783 Accrued payroll and payroll-related liabilities 41,584 39,672 Unearned revenue 14,358 27,083 Current portion of operating lease liabilities 50,385 50,083 Accrued liabilities and other 49,187 42,931 Total current liabilities 185,614 189,552 Long-term debt 172,353 181,641 Long-term portion of operating lease liabilities 303,887 345,635 Other non-current liabilities 8,455 8,755 Total liabilities 670,309 725,583 Commitments and contingencies (see Note 8) Stockholders' equity (deficit): Common stock; $ 0.001 par value: 45,000 shares authorized; 22,050 shares issued; 17,966 and 17,403 shares outstanding as of October 5, 2025 and December 29, 2024 22 22 Preferred stock, $ 0.001 par value: 3,000 shares authorized; no shares issued and outstanding as of October 5, 2025 and December 29, 2024 — — Treasury stock 4,084 and 4,647 shares, at cost, as of October 5, 2025 and December 29, 2024 ( 144,772 ) ( 164,937 ) Paid-in capital 214,856 233,667 Accumulated other comprehensive loss, net of tax ( 60 ) ( 62 ) Accumulated deficit ( 166,136 ) ( 152,959 ) Total stockholders' equity (deficit) ( 96,090 ) ( 84,269 ) Total liabilities and stockholders' equity (deficit)

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View this 10-Q filing on SEC EDGAR