Red Robin Gourmet (RRGB) AI Stock Analysis

• Market Cap: $77.61M
• Dividend Yield: N/A
• Average Volume (3M): 235.41K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.73
• Revenue Growth: -3.61%
• EPS Growth: 2.06%
• Country: US
• Employees: 21,443
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Restaurants
• EPS (TTM): -0.70
• Shares Outstanding: 17,964,458
• 10 Day Avg. Volume: 209,514
• 30 Day Avg. Volume: 235,410
• 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: 8.03
• Enterprise Value/Revenue: 0.50
• Enterprise Value/Gross Profit: 2.26
• Enterprise Value/Ebitda: 23.87
• 1Y Price Target: $10.00
• Price Target Upside: 136.97% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 4
• EPS Forecast (FY): -0.78
• Revenue Forecast (FY): $1.21B

• Rating: 41 Neutral
• Price Target: $4.00 ▼(-5.21% Downside)

Red Robin Gourmet's overall stock score is primarily impacted by its challenging financial performance, including declining revenues, persistent losses, and high leverage. Technical analysis further indicates a bearish trend, with the stock trading below key moving averages. Valuation metrics are weak, with a negative P/E ratio and no dividend yield. While the earnings call highlighted some operational improvements, these are overshadowed by the broader financial and market challenges.

Positive Factors

Operational Efficiency

Improved operational efficiency through labor management enhances profitability, providing a durable advantage in managing costs long-term.

Off-Premise Business Growth

Growth in off-premise sales diversifies revenue streams and aligns with consumer trends, supporting sustained business expansion.

Restaurant Refresh Initiatives

Refreshing restaurant locations can enhance customer experience and drive traffic, supporting long-term revenue growth.

Negative Factors

Revenue Decline

Declining revenues indicate challenges in market positioning and demand, potentially impacting long-term financial stability.

High Financial Leverage

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

Cash Flow Challenges

Negative free cash flow indicates liquidity issues, which can hinder the company's ability to fund operations and strategic investments.

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 makes money primarily through the sale of food and beverages in its restaurants. The company generates revenue from dine-in services, takeout orders, and catering services. Key revenue streams include the sale of gourmet burgers, sides, appetizers, and drinks, along with special promotions and seasonal menu items. Additionally, Red Robin benefits from franchise agreements that allow independent operators to run Red Robin locations, providing the company with franchise fees and a percentage of sales. The brand also engages in partnerships with third-party delivery services to expand its reach and convenience for customers, contributing to overall sales growth.

Red Robin Gourmet Financial Statement Overview

Summary

Red Robin Gourmet is facing significant financial challenges across all key financial statements. 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. The company needs to address these financial weaknesses to stabilize its operations and improve its financial health.

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 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	1.24B	1.25B	1.30B	1.27B	1.16B	868.72M
Gross Profit	275.68M	852.81M	417.79M	419.59M	394.36M	237.88M
EBITDA	26.11M	5.38M	71.83M	18.75M	47.02M	-185.83M
Net Income	-53.35M	-77.54M	-21.23M	-78.88M	-50.44M	-276.07M
Balance Sheet
Total Assets	586.91M	641.31M	741.93M	832.14M	929.00M	974.74M
Cash, Cash Equivalents and Short-Term Investments	24.37M	30.65M	23.63M	48.83M	22.75M	16.12M
Total Debt	523.20M	585.12M	610.79M	657.13M	672.89M	691.15M
Total Liabilities	665.55M	725.58M	762.38M	830.36M	852.02M	854.03M
Stockholders Equity	-78.64M	-84.27M	-20.44M	1.79M	76.97M	120.71M
Cash Flow
Free Cash Flow	-8.37M	-18.99M	-50.60M	-2.63M	5.03M	-1.90M
Operating Cash Flow	22.31M	7.05M	-1.16M	35.53M	47.29M	20.23M
Investing Cash Flow	-23.54M	-1.75M	8.23M	-29.57M	-42.24M	-21.39M
Financing Cash Flow	3.65M	2.54M	-33.71M	29.53M	1.56M	-11.70M

Red Robin Gourmet Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 4.22
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• 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 Neutral. The current price of 4.22 is above the 20-day moving average (MA) of 4.09, below the 50-day MA of 4.81, and below the 200-day MA of 5.06, indicating a neutral trend. The MACD of -0.15 indicates Negative momentum. The RSI at 51.42 is Neutral, neither overbought nor oversold. The STOCH value of 49.32 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
CAKE	66 Neutral	$2.60B	15.51	39.14%	2.07%	4.90%	27.14%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
DENN	61 Neutral	$319.29M	31.66	―	―	0.93%	-41.47%
DIN	58 Neutral	$486.22M	14.74	―	5.09%	6.47%	-62.84%
BDL	56 Neutral	$52.51M	10.76	7.97%	1.95%	8.99%	49.97%
JACK	53 Neutral	$367.54M	-4.42	―	9.05%	-6.75%	-118.94%
RRGB	41 Neutral	$77.61M	-1.31	―	―	-3.61%	2.06%

Red Robin Gourmet Corporate Events

Red Robin Appoints Christopher Meyer as Interim CFO

Red Robin Gourmet Burgers, Inc. announced the appointment of Christopher Meyer as the interim Chief Financial Officer, effective December 1, 2025. Meyer, who previously held significant financial roles at Bloomin’ Brands, Inc., will replace Todd Wilson and serve until successors are appointed. This strategic move is expected to ensure continuity in financial leadership as the company navigates the transition period.

Red Robin Gourmet Announces Equity Offering Program

On November 10, 2025, Red Robin Gourmet Burgers, Inc. announced an ‘at-the-market equity offering’ program, allowing the company to sell shares of its common stock through Evercore Group L.L.C. with a total value of up to $40 million. The proceeds from this program are intended for working capital, debt repayment, and other general purposes, potentially impacting the company’s financial flexibility and market positioning.

Red Robin Announces CFO Resignation and Leadership Changes

Red Robin Gourmet Burgers, Inc. announced significant leadership changes with the resignation of Todd Wilson as Chief Financial Officer effective December 12, 2025, and the promotion of Jesse Griffith to Chief Operations Officer. These changes are part of the company’s ongoing efforts to restore its industry position, with Griffith’s extensive experience expected to enhance operational excellence and guest service. Additionally, the company reported that its third-quarter 2025 results exceeded expectations, with comparable restaurant sales declining by approximately 1.2% and adjusted EBITDA projected between $7.1 million and $7.6 million.

Red Robin Gourmet’s Chief Accounting Officer Resigns

On September 29, 2025, Robyn Arnell Brenden announced her resignation as Chief Accounting Officer of Red Robin Gourmet Burgers, Inc., effective October 17, 2025. Todd Wilson, the Chief Financial Officer, will take over her responsibilities without any change in his compensation, ensuring a smooth transition for the company.