Red Robin Reports Decline in Revenue and Net Loss for Q1 Fiscal 2026

Red Robin Gourmet Burgers, Inc. reported a decline in financial performance for the first quarter of fiscal 2026, ending April 19, 2026. Total revenues reached $378.3 million, a decrease of $14.1 million, or 3.6%, compared to $392.4 million in the same period last year. Restaurant revenue specifically fell to $371.1 million, down 3.8% from $385.8 million, while franchise revenue increased by 9.9% to $4.9 million. The company experienced a net loss of $2.2 million, contrasting with a net income of $1.2 million in the prior year, marking a $3.4 million decline.

Operationally, Red Robin's comparable restaurant revenue decreased by 0.6%, attributed to a 1.6% drop in guest counts, although this was partially offset by a 1.0% increase in average guest checks. The company closed six locations during the quarter, contributing to a total of 379 company-owned restaurants and 90 franchised locations as of the reporting date. The overall number of restaurants decreased from 491 to 469 year-over-year. The company also reported an adjusted EBITDA of $27.3 million, down 2% from $27.9 million in the previous year.

In terms of costs, Red Robin's total operating expenses decreased to $372.8 million from $383.3 million, with notable reductions in labor costs, which fell by 7.5% to $132.4 million. This decrease was attributed to improved labor efficiency and menu price increases, despite ongoing wage inflation. However, the cost of sales as a percentage of restaurant revenue increased to 23.3%, up from 22.8%, primarily due to rising commodity prices. General and administrative expenses also saw a significant reduction, dropping 14.4% to $23.1 million, reflecting lower headcount and corporate event costs.

Looking ahead, Red Robin's management expressed cautious optimism regarding future performance, emphasizing the importance of strategic initiatives to enhance operational efficiency and customer engagement. The company continues to focus on its loyalty program and marketing strategies to drive sales. Additionally, Red Robin maintains a robust liquidity position, with cash and cash equivalents totaling $33.9 million and available borrowing capacity of $16.5 million under its credit facility. The company believes these resources will be sufficient to meet its working capital and capital expenditure needs over the next 12 months.