RED ROBIN GOURMET BURGERS INC (RRGB): Results of Operations and Financial Condition
RED ROBIN GOURMET BURGERS INC (RRGB) filed an SEC Form 8-K — Results of Operations and Financial Condition. Exhibit 99.1 RED ROBIN GOURMET BURGERS, INC. REPORTS SECOND QUARTER OF FISCAL 2026 RESULTS Englewood, CO – August 12, 2026 – Red Robin Gourmet Burgers, Inc. (NASDAQ: RRGB) ("Red Robin" or the "Company"), a casual dining restaurant chain serving an innovative selection of high-qua
How this was made
The 30-second read
Why it matters
Traders can update models using the disclosed Q2 operating metrics (restaurant-level margin 14.7%), liquidity/borrowings, and the FY2026 guidance ranges (comparable revenue growth 0.5% to 1.5%, adjusted EBITDA $70M to $73M) while monitoring refranchising closing in Q3.
Market read
The combination of improved restaurant-level margins, modest comparable revenue growth, and a defined refranchising capital infusion provides a concrete catalyst set for near-term positioning ahead of the investor call.
What to watch
Comparable traffic was down 0.2% even as average check rose 1.5%, and liquidity is still only ~$47.8M versus $167.2M borrowings, leaving refinancing execution as a key risk.
RED ROBIN GOURMET BURGERS, INC. REPORTS SECOND QUARTER OF FISCAL 2026 RESULTS
Comparable restaurant revenue and restaurant-level operating profit margin improved, but total revenue, operating income, net income, Adjusted EBITDA, and diluted EPS were below the prior-year quarter. The Company reaffirmed fiscal 2026 guidance and announced refranchising agreements expected to generate $96.0 million of gross proceeds.
Key metrics
as reported| Metric | Value | q/q | y/y |
|---|---|---|---|
| Total revenues, twelve weeks ended July 12, 2026GAAP | $277.6 | – | – |
| Restaurant revenues, twelve weeks ended July 12, 2026GAAP | $272.6 | – | – |
| Comparable restaurant revenue, twelve weeks ended July 12, 2026other | 1.3% | – | – |
| Income (loss) from operations, twelve weeks ended July 12, 2026GAAP | $6.2 | – | – |
| Income (loss) from operations as a percent of total revenues, twelve weeks ended July 12, 2026GAAP | 2.2% | – | – |
| Restaurant Level Operating Profit, twelve weeks ended July 12, 2026non-GAAP | $40.1 | – | – |
| Restaurant Level Operating Profit Margin, twelve weeks ended July 12, 2026non-GAAP | 14.7% | – | – |
| Net income (loss), twelve weeks ended July 12, 2026GAAP | $0.4 | – | – |
| Adjusted EBITDA, twelve weeks ended July 12, 2026non-GAAP | $18.9 | – | – |
| Net income (loss) per share - diluted, twelve weeks ended July 12, 2026GAAP | $0.02 | – | – |
| Adjusted net income (loss) per share - diluted, twelve weeks ended July 12, 2026non-GAAP | $0.12 | – | – |
| Total revenues, twenty-eight weeks ended July 12, 2026GAAP | $655.9 | – | – |
| Restaurant revenues, twenty-eight weeks ended July 12, 2026GAAP | $643.7 | – | – |
| Comparable restaurant revenue, twenty-eight weeks ended July 12, 2026other | 0.2% | – | – |
| Income (loss) from operations, twenty-eight weeks ended July 12, 2026GAAP | $11.7 | – | – |
| Income (loss) from operations as a percent of total revenues, twenty-eight weeks ended July 12, 2026GAAP | 1.8% | – | – |
| Restaurant Level Operating Profit, twenty-eight weeks ended July 12, 2026non-GAAP | $94.8 | – | – |
| Restaurant Level Operating Profit Margin, twenty-eight weeks ended July 12, 2026non-GAAP | 14.7% | – | – |
| Net income (loss), twenty-eight weeks ended July 12, 2026GAAP | $(1.8) | – | – |
| Adjusted EBITDA, twenty-eight weeks ended July 12, 2026non-GAAP | $46.2 | – | – |
| Net income (loss) per share - diluted, twenty-eight weeks ended July 12, 2026GAAP | $(0.10) | – | – |
| Adjusted net income (loss) per share - diluted, twenty-eight weeks ended July 12, 2026non-GAAP | $0.25 | – | – |
Fiscal 2026 outlook
- NoteComparable Restaurant Revenue growth, excluding deferred loyalty revenue, of 0.5% to 1.5%
- NoteRestaurant level operating profit of approximately 13.0%
- NoteAdjusted EBITDA of $70 million to $73 million
- NoteCapital expenditures of $25 million to $30 million
- NoteThis guidance does not contemplate any impacts from the announced refranchising transactions due to uncertainty with the timing of the completion of the transactions.
What drove it
- Comparable restaurant revenue increased 1.3%, comprising a 0.2% decrease in guest traffic and a 1.5% increase in average guest check.
- Restaurant Level Operating Profit Margin improvement was primarily driven by higher average guest check and benefits of efficiency initiatives, offsetting the impact of inflation.
- Adjusted EBITDA was driven by increased selling expenses supporting the Big Yummm value platform through the First Choice marketing strategy.
- The Company said the refranchising agreements support balance-sheet strengthening, debt reduction, and critical investments.
Concerns
- Total revenues, restaurant revenues, income from operations, net income, Adjusted EBITDA, and diluted EPS were lower than the prior-year twelve-week period.
- Guest traffic decreased 0.2%.
- The Company cited inflation as an offset to margin improvement.
- Fiscal 2026 guidance excludes impacts from the announced refranchising transactions because of uncertainty regarding transaction completion timing.
- The Company identified the need to refinance debt as a use of financial flexibility from the refranchising proceeds.
What to watch
- Completion during the third quarter of the three refranchising transactions for 116 company-owned restaurants.
- The Company's expected guidance update upon completion of the refranchising transactions.
- Comparable restaurant revenue growth within the 0.5% to 1.5% fiscal 2026 outlook.
- Restaurant level operating profit of approximately 13.0% and Adjusted EBITDA of $70 million to $73 million for fiscal 2026.
- The use of refranchising proceeds to refinance debt and support long-term strategic priorities.
Balance sheet and cash flow
- As of July 12, 2026, outstanding borrowings under the credit facility were $167.2 million.
- As of July 12, 2026, liquidity was approximately $47.8 million, including cash and cash equivalents and available borrowing capacity under the credit facility.
- Three refranchising agreements for the sale of 116 company-owned restaurants are expected to generate $96.0 million of gross proceeds.
- The refranchising transactions are expected to close during the third quarter, subject to customary closing conditions.
Analysis
Second-quarter comparable restaurant revenue increased 1.3%, with a 1.5% increase in average guest check offsetting a 0.2% decrease in guest traffic. Management described the traffic outcome as its best quarterly result since the first quarter of 2023. Despite this comparable-sales improvement, total revenues were $277.6 versus $283.7 in the prior-year twelve-week period, while restaurant revenues were $272.6 versus $279.3.
Restaurant-level profitability improved on a margin basis. Restaurant Level Operating Profit Margin was 14.7%, compared with 14.5%, and the Company said higher average guest check and efficiency initiatives more than offset inflation. However, Restaurant Level Operating Profit was $40.1 versus $40.5. GAAP income from operations was $6.2 versus $9.8, and the operating margin was 2.2% versus 3.5%.
Below restaurant-level profit, earnings weakened from the prior-year quarter. Net income was $0.4 versus $4.0, diluted EPS was $0.02 versus $0.21, Adjusted EBITDA was $18.9 versus $22.4, and adjusted diluted EPS was $0.12 versus $0.26. The Company attributed Adjusted EBITDA to increased selling expenses supporting its Big Yummm value platform through its First Choice marketing strategy.
Liquidity and capital structure are central to the quarter. Outstanding credit-facility borrowings were $167.2 million and liquidity was approximately $47.8 million as of July 12, 2026. The Company announced three refranchising agreements to sell 116 company-owned restaurants for expected gross proceeds of $96.0 million. It said the transactions are expected to close during the third quarter and would provide flexibility to refinance debt and support strategic priorities.
The Company reaffirmed fiscal 2026 guidance for comparable restaurant revenue growth of 0.5% to 1.5%, restaurant level operating profit of approximately 13.0%, Adjusted EBITDA of $70 million to $73 million, and capital expenditures of $25 million to $30 million. The outlook excludes impacts from the announced refranchising transactions, and the Company expects to update guidance when those transactions are completed.
Management, verbatim
Our second quarter delivered meaningful operating and financial improvement as we continue our disciplined execution of our First Choice plan.
Dave Pace, President and Chief Executive Officer
Our restaurant teams remained focused on delivering exceptional hospitality and operational excellence, resulting in the strongest second quarter traffic and restaurant-level operating profit margins in three years.
Dave Pace, President and Chief Executive Officer
During the quarter, we announced three refranchising agreements, representing a significant capital infusion of $96 million in gross proceeds, which provides us financial flexibility to refinance our debt and support our long-term strategic priorities.
Dave Pace, President and Chief Executive Officer
Not in the filing
stated, not guessed- Prior-quarter comparisons for all reported key metrics.
- Year-over-year percentage changes for total revenues, restaurant revenues, income from operations, Restaurant Level Operating Profit, net income, Adjusted EBITDA, and EPS metrics.
- Segment revenue and segment operating results.
- Gross profit and gross margin.
- Operating cash flow.
- Free cash flow.
- Cash and cash equivalents amount separately from liquidity.
- Capital-return activity, including share repurchases and dividends.
- Debt maturity, interest expense, tax rate, and share count.
- GAAP revenue, gross margin, operating expenses, tax rate, and GAAP earnings guidance.
- A previous-quarter outlook section for comparison against prior guidance.
AlphaAI analysis generated from the company’s SEC earnings filing (Form 8-K Item 2.02, or Form 6-K for a foreign private issuer). Every figure was cross-checked against the filing text; consensus estimates, price targets and share-price reactions are not shown because they are not in the filing. AI-generated research, not investment advice.
Background
Red Robin filed an SEC Form 8-K (Item 2.02) with Q2 fiscal 2026 results and an update on its First Choice plan, including refranchising agreements.
Ticker impact
Red Robin reported fiscal Q2 results and reaffirmed FY2026 guidance, while announcing three refranchising deals for $96M gross proceeds.
Likely near-term positive bias if investors view the $96M refranchising proceeds as de-risking leverage and supporting the First Choice plan; upside may be capped by modest comparable revenue growth and reaffirmed guidance.
The filing discloses Q2 revenue, operating income, adjusted EBITDA, liquidity/borrowings, and specific refranchising terms ($96.0M gross proceeds, 116 restaurants, expected Q3 close), plus explicit FY2026 ranges that exclude refranchising timing uncertainty.
Market effects
Casual dining peers may see read-through on refranchising as a lever to improve liquidity and margins, but this is company-specific.
No specific regional demand signal beyond company-wide traffic and check commentary.
Limited global relevance; impacts are primarily US/Canada restaurant portfolio and financing.
Counterpoint
Reaffirmed guidance explicitly does not include refranchising impacts due to timing uncertainty, so the market may discount the $96M proceeds until closing.
Key entities
- companyRed Robin Gourmet Burgers, Inc.
NASDAQ-listed casual dining chain reporting fiscal Q2 results, reaffirming FY2026 guidance, and announcing three refranchising agreements for $96M gross proceeds.
- executiveDave Pace
CEO quoted on operating improvement and refranchising as part of the First Choice plan.
