Red Robin Reports 1% Revenue Growth and Net Income Turnaround in Q1 Fiscal 2025

Red Robin Gourmet Burgers, Inc. reported its financial results for the first quarter of fiscal 2025, revealing total revenues of $392.4 million, a 1% increase from $388.5 million in the same period last year. The company's restaurant revenue rose by 1.9% to $385.8 million, driven by a 3.1% increase in comparable restaurant revenue, despite a decrease in customer counts. Net income for the quarter was $1.2 million, a significant turnaround from a net loss of $9.5 million in the prior year, marking a $10.7 million improvement. Adjusted EBITDA also saw a substantial increase, rising 108.2% to $27.9 million compared to $13.4 million in the previous year.

In terms of operational changes, Red Robin's total number of restaurants decreased to 491, with 401 company-owned and 90 franchised locations as of April 20, 2025. The company closed six company-owned restaurants and one franchised location during the quarter. The average weekly net sales volume in company-owned restaurants increased by 4.1% to $59,483, although the overall guest count declined by 3.5%. The company attributed the revenue growth to a 6.8% increase in menu prices, which was partially offset by a decrease in guest count.

The company also made strategic moves during the quarter, including the sale of three restaurant properties for gross proceeds of $5.8 million, which contributed to a net gain of $1.1 million. This transaction was part of Red Robin's ongoing efforts to optimize its asset portfolio and reduce debt, with $17.8 million repaid during the quarter. Additionally, the company reported a decrease in total liabilities from $725.6 million at the end of the previous fiscal year to $686.6 million, reflecting a reduction in long-term debt and operating lease liabilities.

Looking ahead, Red Robin is closely monitoring macroeconomic conditions, including inflation and potential impacts from trade policies, which could affect commodity prices and consumer spending. The company does not anticipate a material adverse impact on its financial performance for the remainder of fiscal 2025 but acknowledges the risks associated with ongoing economic volatility. Management remains focused on enhancing operational efficiency and profitability while navigating these challenges.