Red Robin Gourmet (RRGB) AI Stock Analysis

• Market Cap: $124.47M
• Dividend Yield: N/A
• Average Volume (3M): 325.32K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.77
• 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: 274,856
• 30 Day Avg. Volume: 325,321
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 4.84
• Enterprise Value/Revenue: 0.48
• Enterprise Value/Gross Profit: 0.64
• Enterprise Value/Ebitda: 43.76
• 1Y Price Target: $11.50
• Price Target Upside: 70.62% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 3

• Rating: 55 Neutral
• Price Target: $7.00 ▲(3.86% Upside)

The overall stock score is primarily influenced by significant financial challenges, including ongoing losses and high leverage, which weigh heavily on the score. Positive technical indicators provide some support, suggesting potential short-term momentum. Valuation concerns due to a negative P/E ratio and lack of dividend yield further impact the score. Mixed sentiment from the earnings call highlights both operational improvements and ongoing challenges.

Positive Factors

Operational Efficiency

Improved operational efficiency, particularly in labor, enhances profitability and competitiveness, supporting long-term financial health.

Debt Reduction

Reducing debt levels strengthens the balance sheet, lowers financial risk, and increases flexibility for future investments and growth.

Strategic Initiatives

Successful promotions like the Big Yummm deal demonstrate effective marketing strategies that can drive traffic and revenue growth.

Negative Factors

Revenue Decline

Declining revenue indicates challenges in maintaining market share and customer engagement, potentially impacting long-term growth.

Commodity Cost Increase

Rising commodity costs can pressure margins and profitability, requiring strategic cost management to sustain financial performance.

Traffic Decline

Decreased guest traffic suggests competitive pressures and market challenges, which could hinder revenue and market position if not addressed.

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 faces significant financial challenges across all statements, with consistent losses and high leverage. The income statement reflects declining profitability and stagnant revenue growth, while the balance sheet indicates insolvency risks with negative equity. Although cash flows show some operational cash generation, liquidity remains a concern due to negative free cash flow.

Income Statement

The income statement shows a challenging financial position with a negative net profit margin of -5.33% in TTM, indicating ongoing losses. Revenue growth is stagnating with a slight increase of 0.31% from the previous annual period. Gross profit margin has significantly declined from 65.69% in 2024 to 21.51% in TTM. Negative EBIT and EBITDA margins further highlight operational inefficiencies.

Balance Sheet

The balance sheet reveals significant financial stress with a negative stockholders' equity of -$80.41 million in TTM, indicating insolvency risks. The debt-to-equity ratio is not applicable due to negative equity, but total debt remains high at $544.30 million. The equity ratio is negative, suggesting that liabilities exceed assets.

Cash Flow

Cash flow analysis presents mixed results. Operating cash flow has improved to $12.89 million in TTM, but free cash flow remains negative. The operating cash flow to net income ratio is favorable at -0.19, indicating some cash generation despite net losses. However, the negative free cash flow growth rate signals ongoing liquidity challenges.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	1.25B	1.25B	1.30B	1.27B	1.16B	868.72M
Gross Profit	948.58M	852.81M	192.79M	118.64M	103.53M	237.88M
EBITDA	13.77M	5.38M	71.83M	18.75M	47.46M	-185.83M
Net Income	-66.83M	-77.54M	-21.23M	-78.88M	-50.00M	-276.07M
Balance Sheet
Total Assets	606.23M	641.31M	741.93M	832.14M	929.00M	974.74M
Cash, Cash Equivalents and Short-Term Investments	24.15M	30.65M	23.63M	48.83M	22.75M	16.12M
Total Debt	544.30M	578.38M	618.54M	657.13M	672.89M	691.15M
Total Liabilities	686.64M	725.58M	762.38M	826.77M	852.02M	854.03M
Stockholders Equity	-80.41M	-84.27M	-20.44M	5.38M	76.97M	120.71M
Cash Flow
Free Cash Flow	-16.87M	-18.99M	-50.60M	-2.63M	5.03M	-1.90M
Operating Cash Flow	12.89M	7.05M	-1.16M	35.53M	47.29M	20.23M
Investing Cash Flow	-23.27M	-1.75M	8.23M	-29.57M	-42.24M	-21.39M
Financing Cash Flow	5.12M	2.54M	-33.71M	29.53M	1.56M	-11.70M

Red Robin Gourmet Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 6.74
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For RRGB, the sentiment is Positive. The current price of 6.74 is above the 20-day moving average (MA) of 6.57, above the 50-day MA of 6.38, and above the 200-day MA of 5.13, indicating a bullish trend. The MACD of 0.16 indicates Negative momentum. The RSI at 54.65 is Neutral, neither overbought nor oversold. The STOCH value of 69.17 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for RRGB.

Red Robin Gourmet Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
CAKE	68 Neutral	2.74B	16.90	39.63%	1.99%	4.77%	38.24%
PBPB	68 Neutral	515.64M	47.84	69.01%	―	-1.72%	-70.31%
BJRI	67 Neutral	677.66M	25.24	7.12%	―	4.07%	-1.24%
DENN	60 Neutral	276.55M	17.31	-63.40%	―	0.06%	-12.14%
CBRL	58 Neutral	975.52M	21.27	10.05%	2.28%	0.37%	12.99%
RRGB	55 Neutral	$124.47M	―	92.02%	―	-3.09%	-30.16%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%

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.