Red Robin Gourmet (RRGB) AI Stock Analysis

• Market Cap: $120.36M
• Dividend Yield: N/A
• Average Volume (3M): 233.63K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.72
• Revenue Growth: -3.09%
• EPS Growth: -30.16%
• Country: US
• Employees: 21,443
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Restaurants
• EPS (TTM): 0.26
• Shares Outstanding: 17,910,055
• 10 Day Avg. Volume: 235,554
• 30 Day Avg. Volume: 233,628
• PEG Ratio: >-0.01
• Price to Book (P/B): -1.03
• Price to Sales (P/S): 0.07
• P/FCF Ratio: -4.55
• Enterprise Value/Market Cap: 5.01
• Enterprise Value/Revenue: 0.49
• Enterprise Value/Gross Profit: 2.19
• Enterprise Value/Ebitda: 23.07
• 1Y Price Target: $9.67
• Price Target Upside: 48.09% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 4

• Rating: 51 Neutral
• Price Target: $7.00 ▲(7.20% Upside)

Red Robin Gourmet's stock score is primarily impacted by its weak financial performance, characterized by declining revenues, high leverage, and liquidity issues. While technical indicators show positive momentum, the valuation remains unattractive due to negative earnings. The earnings call provided some operational improvements, but challenges persist, leading to a cautious outlook.

Positive Factors

Labor Efficiency

Improved labor efficiency enhances operational margins, reducing costs and potentially increasing profitability, which is crucial for long-term sustainability.

Adjusted EBITDA Growth

Growth in adjusted EBITDA indicates better cost management and operational efficiency, providing a stronger financial foundation for future investments and growth.

Leadership Change

New leadership in organizational strategy can drive cultural and operational improvements, aligning with strategic goals for enhanced employee engagement and performance.

Negative Factors

Revenue Decline

Declining revenue suggests challenges in maintaining customer traffic and market share, which could impact long-term growth and competitive positioning.

High Leverage

High leverage increases financial risk and limits flexibility, potentially affecting the company's ability to invest in growth opportunities and weather economic downturns.

Commodity Cost Pressures

Rising commodity costs can erode profit margins, necessitating price adjustments or cost-cutting measures, which may impact customer satisfaction and demand.

Red Robin Gourmet Business Overview & Revenue Model

Company Description

Red Robin Gourmet Burgers, Inc., together with its subsidiaries, develops, operates, and franchises full-service and casual-dining restaurants. The company's restaurants primarily offer burgers and shareable pizzas; various appetizers, salads, soups, sandwiches, seafood, and other entrees; and desserts, wings, milkshakes, alcoholic and non-alcoholic specialty drinks, cocktails, wine, and beers. As of December 26, 2021, it operated approximately 531 Red Robin restaurants, including 430 were company-owned and 101 were operated by franchisees in the United States and one Canadian province. Red Robin Gourmet Burgers, Inc. was founded in 1969 and is based in Greenwood Village, Colorado.

How the Company Makes Money

Red Robin generates revenue primarily through the sale of food and beverages in its company-owned and franchised restaurants. The company's revenue model is centered on in-restaurant dining, takeout, and delivery services. Key revenue streams include the sale of gourmet burgers, side dishes, alcoholic and non-alcoholic beverages, and desserts. Additionally, Red Robin benefits from promotional events, loyalty programs, and seasonal menu offerings that drive customer traffic and increase average ticket sizes. The company also engages in strategic partnerships with delivery services to enhance its reach and convenience, contributing to its overall earnings.

Red Robin Gourmet Financial Statement Overview

Summary

Red Robin Gourmet is facing significant financial challenges. The income statement shows declining revenues and persistent losses, the balance sheet reveals high leverage and negative equity, and the cash flow statement indicates liquidity issues. These factors highlight the company's financial instability and need for strategic improvements.

Income Statement

Red Robin Gourmet's income statement reveals a challenging financial position. The company has experienced declining revenue growth, with a negative growth rate in the TTM period. Gross profit margins have decreased significantly from previous years, and net profit margins remain negative, indicating ongoing profitability issues. The EBIT and EBITDA margins are also negative, reflecting operational inefficiencies. Overall, the income statement suggests financial instability and a need for strategic improvements.

Balance Sheet

The balance sheet highlights significant financial leverage, with a high debt-to-equity ratio due to negative stockholders' equity. This indicates potential solvency risks. The return on equity is volatile, reflecting inconsistent profitability. The equity ratio is negative, underscoring the company's financial vulnerability. Overall, the balance sheet suggests a precarious financial position with high leverage and low equity.

Cash Flow

Cash flow analysis shows mixed results. Operating cash flow is positive but low relative to net income, indicating limited cash generation from operations. Free cash flow is negative, and its growth rate is declining, suggesting cash flow challenges. The free cash flow to net income ratio is negative, highlighting cash flow inefficiencies. Overall, the cash flow statement indicates liquidity concerns and the need for improved cash management.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2019	Dec 2018	Dec 2017
Income Statement
Total Revenue	1.24B	1.25B	1.30B	1.32B	1.34B	1.38B
Gross Profit	275.68M	852.81M	192.79M	443.03M	454.65M	472.39M
EBITDA	26.11M	5.38M	71.83M	79.73M	84.89M	138.49M
Net Income	-53.35M	-77.54M	-21.23M	-7.90M	-6.42M	30.02M
Balance Sheet
Total Assets	586.91M	641.31M	741.93M	1.24B	843.94M	910.62M
Cash, Cash Equivalents and Short-Term Investments	24.37M	30.65M	23.63M	30.05M	18.57M	17.71M
Total Debt	523.20M	578.38M	618.54M	715.01M	202.79M	276.57M
Total Liabilities	665.55M	725.58M	762.38M	877.06M	461.14M	523.18M
Stockholders Equity	-78.64M	-84.27M	-20.44M	360.52M	382.81M	387.44M
Cash Flow
Free Cash Flow	-8.37M	-18.99M	-50.60M	606.00K	76.02M	73.08M
Operating Cash Flow	22.31M	7.05M	-1.16M	57.91M	126.30M	156.61M
Investing Cash Flow	-23.54M	-1.75M	8.23M	-57.03M	-49.84M	-83.29M
Financing Cash Flow	3.65M	2.54M	-33.71M	9.68M	-74.30M	-67.92M

Red Robin Gourmet Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 6.53
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For RRGB, the sentiment is Neutral. The current price of 6.53 is below the 20-day moving average (MA) of 6.88, below the 50-day MA of 6.59, and above the 200-day MA of 5.25, indicating a neutral trend. The MACD of 0.02 indicates Positive momentum. The RSI at 45.65 is Neutral, neither overbought nor oversold. The STOCH value of 40.97 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for RRGB.

Red Robin Gourmet Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
BDL	71 Outperform	$58.59M	13.56	6.88%	1.73%	8.83%	41.90%
DIN	69 Neutral	$432.01M	9.38	-42.81%	7.39%	2.92%	-49.77%
CAKE	68 Neutral	$2.70B	16.70	41.01%	2.00%	4.77%	38.24%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
DENN	54 Neutral	$252.35M	16.24	-63.40%	―	0.06%	-12.14%
RRGB	51 Neutral	$120.36M	―	92.02%	―	-3.09%	-30.16%
JACK	50 Neutral	$332.52M	―	4.15%	10.31%	-6.66%	-71.87%

Red Robin Gourmet Corporate Events

Red Robin Elects Directors and Ratifies Auditor

At the annual meeting of stockholders held on May 22, 2025, Red Robin Gourmet Burgers, Inc. elected all nine directors nominated by the board for one-year terms. Stockholders approved the compensation of executive officers but did not pass proposals to amend the company’s Certificate of Incorporation for officer exculpation and to eliminate supermajority vote requirements. Additionally, the appointment of Deloitte & Touche LLP as the independent registered public accounting firm for the 2025 fiscal year was ratified.