Red Robin Reports Q2 2026 Revenue Decline to $277.6 Million

Red Robin Gourmet Burgers, Inc. reported its financial results for the second quarter of fiscal 2026, revealing total revenues of $277.6 million, a decrease of $6.1 million compared to $283.7 million in the same period last year. Restaurant revenue specifically fell to $272.6 million from $279.3 million, marking a 2.4% decline. The company recorded a net income of $0.4 million, down from $4.0 million in the prior year, while adjusted EBITDA decreased by 16% to $18.9 million from $22.4 million.

In the year-to-date results, total revenues reached $655.9 million, down $20.2 million from $676.1 million in the previous year. The company reported a net loss of $1.8 million, a significant drop from the net income of $5.2 million recorded in the same period last year. Adjusted EBITDA for the year-to-date period also fell by 8% to $46.2 million from $50.3 million. The decline in revenue was attributed to a decrease in customer counts and the closure of 22 locations since the second quarter of fiscal 2025.

Operationally, Red Robin operated 375 company-owned restaurants and 90 franchised locations as of July 12, 2026. The company has entered into asset purchase agreements to refranchise 116 company-owned restaurants for approximately $96 million, which is expected to close during fiscal 2026. This strategic move aims to enhance financial flexibility and reduce debt. The company also completed sale-leaseback transactions for two restaurant properties, generating net proceeds that will be used for general corporate purposes.

The company’s financial position showed a slight improvement in liquidity, with cash and cash equivalents, along with restricted cash, increasing to $32.5 million as of July 12, 2026, from $29.5 million at the beginning of the fiscal year. Red Robin's total liabilities decreased to $634.3 million from $669.9 million at the end of the previous fiscal year. The company continues to manage its debt effectively, with outstanding borrowings under its credit facility totaling $167.2 million.

Looking ahead, Red Robin anticipates that its current cash reserves, future cash flows from operations, and available borrowing capacity will be sufficient to meet its working capital and capital expenditure needs for the next 12 months. The company remains focused on improving operational efficiency and enhancing customer experience as it navigates the challenges of the casual dining sector.