Red Robin Gourmet (RRGB) AI Stock Analysis

• Market Cap: $122.73M
• Dividend Yield: N/A
• Average Volume (3M): 361.29K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.68
• Revenue Growth: -1.68%
• EPS Growth: -140.83%
• Country: US
• Employees: 21,443
• Sector: Consumer Cyclical
• Sector Strength: 71
• Industry: Restaurants
• EPS (TTM): 0.19
• Shares Outstanding: 17,735,916
• 10 Day Avg. Volume: 274,890
• 30 Day Avg. Volume: 361,288
• PEG Ratio: -0.11
• Price to Book (P/B): -1.29
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -6.22
• Enterprise Value/Market Cap: 5.08
• Enterprise Value/Revenue: 0.12
• Enterprise Value/Gross Profit: 2.31
• Enterprise Value/Ebitda: 6.42
• 1Y Price Target: $11.50
• Price Target Upside: 54.57% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 3

• Rating: 56 Neutral
• Price Target: $7.00 ▼(-5.91%Downside)

Red Robin Gourmet faces significant financial challenges, evidenced by negative profitability and high leverage. While technical indicators show bullish momentum, valuation concerns with a negative P/E and no dividend yield limit attractiveness. Recent earnings call and corporate events suggest mixed sentiment, with improvements countered by ongoing traffic and cost challenges. The new CEO appointment provides some optimism for strategic improvement.

Positive Factors

Customer Satisfaction

RRGB saw solid labor leverage while achieving the highest year-over-year increase in customer satisfaction scores in the full-service dining segment.

Profitability

Management updated guidance now expecting profitability results to be much stronger than originally expected.

Traffic Growth

RRGB announced the launch of a new everyday value platform that drove a significant traffic lift in tests, indicating potential success in attracting more customers.

Negative Factors

Operational Costs

The plan includes incremental costs and cash outlays in areas such as discounts, operating maintenance, and capital expenditures to address deferred maintenance.

Sales Performance

Updated guidance indicates a decline in same-store sales, with expectations now being lower than previously forecasted.

Red Robin Gourmet Business Overview & Revenue Model

Company Description

Red Robin Gourmet Burgers, Inc. (RRGB) is a casual dining restaurant chain known for its gourmet burgers and unique dining experience. Established in 1969 and headquartered in Greenwood Village, Colorado, the company operates primarily in the food and beverage industry, offering a diverse menu that includes a variety of burgers, sandwiches, salads, and beverages. With a focus on quality ingredients and customer satisfaction, Red Robin aims to provide a fun and welcoming atmosphere for families and individuals alike.

How the Company Makes Money

Red Robin Gourmet Burgers, Inc. generates revenue primarily through the operation of its company-owned and franchised restaurants. The company's key revenue streams include sales of food and beverages directly to customers dining in its locations. Additionally, Red Robin benefits from licensing and franchise fees from franchised restaurant operations. The company also engages in strategic partnerships with suppliers and vendors to optimize its supply chain and reduce costs, contributing positively to its earnings. While Red Robin's core business revolves around its restaurant services, it continually seeks to enhance its profitability through menu innovation, customer loyalty programs, and targeted marketing efforts.

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	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	1.25B	1.30B	1.27B	1.16B	868.72M
Gross Profit	852.81M	192.79M	420.68M	394.80M	237.88M
EBITDA	5.38M	71.83M	18.75M	47.46M	-185.83M
Net Income	-77.54M	-21.23M	-77.80M	-50.00M	-276.07M
Balance Sheet
Total Assets	641.31M	741.93M	832.14M	929.00M	974.74M
Cash, Cash Equivalents and Short-Term Investments	30.65M	23.63M	48.83M	22.75M	16.12M
Total Debt	578.38M	618.54M	647.08M	660.93M	691.15M
Total Liabilities	725.58M	762.38M	826.77M	852.02M	854.03M
Stockholders Equity	-84.27M	-20.44M	5.38M	76.97M	120.71M
Cash Flow
Free Cash Flow	-18.99M	-50.60M	-2.63M	5.03M	-1.90M
Operating Cash Flow	7.05M	-1.16M	35.53M	47.29M	20.23M
Investing Cash Flow	-1.75M	8.23M	-29.57M	-42.24M	-21.39M
Financing Cash Flow	2.54M	-33.71M	29.53M	1.56M	-11.70M

Red Robin Gourmet Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 7.44
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Negative

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 7.44 is above the 20-day moving average (MA) of 6.23, above the 50-day MA of 5.22, and above the 200-day MA of 4.94, indicating a bullish trend. The MACD of 0.41 indicates Negative momentum. The RSI at 70.15 is Negative, neither overbought nor oversold. The STOCH value of 82.98 is Negative, 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
PBPB	75 Outperform	$381.68M	9.00	117.47%	―	-3.96%	1036.87%
CAKE	74 Outperform	$3.27B	20.72	46.60%	1.58%	4.42%	48.23%
CBRL	71 Outperform	$1.52B	26.45	12.90%	1.74%	2.84%	-4.44%
BJRI	66 Neutral	$903.65M	43.51	6.01%	―	2.91%	-4.86%
Sector *	63 Neutral	$17.32B	10.90	-7.25%	3.10%	1.66%	-25.40%
DENN	59 Neutral	$211.67M	12.56	-63.40%	―	-0.53%	-24.19%
RRGB	56 Neutral	$122.73M	―	92.02%	―	-1.68%	-140.83%

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.

The most recent analyst rating on (RRGB) stock is a Hold with a $6.00 price target. To see the full list of analyst forecasts on Red Robin Gourmet stock, see the RRGB Stock Forecast page.

Red Robin Gourmet Appoints New CEO David A. Pace

On April 24, 2025, Red Robin Gourmet Burgers, Inc. announced a leadership transition with David A. Pace appointed as the new President and CEO, succeeding G.J. Hart. Mr. Hart, who has been instrumental in transforming Red Robin into an operations-focused restaurant company, will remain as a senior advisor until September 2025. The transition aims to continue the company’s growth and improve its financial performance, with Mr. Pace bringing extensive industry experience to lead the next phase of transformation. The company also expects a positive financial outlook for the first quarter of 2025, with anticipated increases in comparable restaurant sales and adjusted EBITDA.