Red Robin Reports Improved EBITDA Amid Revenue Decline

Red Robin Gourmet Burgers ( (RRGB) ) has released its Q3 earnings. Here is a breakdown of the information Red Robin Gourmet Burgers presented to its investors.

Red Robin Gourmet Burgers, Inc. is a casual dining restaurant chain known for its innovative selection of high-quality gourmet burgers served in a family-friendly atmosphere across nearly 500 locations in the United States and Canada. The company also offers a variety of other menu items, including salads, appetizers, and Donatos® pizza at select locations.

In the fiscal third quarter of 2025, Red Robin reported total revenues of $265.1 million, marking a decrease of $9.5 million compared to the same period last year. Despite the revenue decline, the company saw an improvement in its net loss, which narrowed to $18.4 million from $18.9 million in the previous year. Additionally, the adjusted EBITDA showed a significant increase of 81% year-over-year, reaching $7.6 million.

Key financial metrics for the year-to-date period of fiscal 2025 reveal a total revenue of $941.2 million, down by $22.2 million from the prior year. However, the net loss improved significantly to $13.2 million from $37.8 million last year. The adjusted EBITDA for this period surged by 86% to $58.0 million. The company attributes these improvements to its First Choice plan, which has driven operational efficiencies and better performance in restaurant-level operating profit margins.

Looking ahead, Red Robin’s management remains optimistic about the company’s transformation efforts under the First Choice plan. The company has updated its fiscal 2025 guidance, maintaining its revenue target at approximately $1.2 billion, while expecting an adjusted EBITDA of at least $65 million. Despite challenges, the company is confident in its strategic initiatives to enhance guest experiences and operational efficiencies.