Red Robin Gourmet Burgers is a US-based fast-casual restaurant chain specializing in premium burgers and wings with a stable revenue stream but persistent profitability issues.
The company has narrowed its losses significantly to -$23.3M in 2025 compared to over -$77M in prior years, indicating potential operational turnarounds. Strong operating cash flow of $37.0M provides flexibility for debt repayment or strategic investments without immediate equity dilution. The stable revenue trend around $1.25B suggests resilient demand for premium fast-casual dining options.
Shareholders' equity stands at -$106.3M, indicating severe capital erosion that could limit future growth and dividend potential. High debt levels relative to assets create vulnerability during economic downturns or rising interest rate environments. Continuous operating losses without a clear path to sustained profitability make the stock speculative for value investors.
Red Robin Gourmet Burgers operates as a fast-casual restaurant chain primarily in the United States, offering premium burgers, wings, and fries. The company focuses on the quick-service dining market with an emphasis on fresh ingredients and proprietary blends. Revenue has remained relatively stable around $1.25 billion annually despite recent net income challenges.
While revenue remained stable at $1.21B in 2025, the company reported a net profit loss of -$23.3M, marking an improvement from -$77.8M losses in previous years. Operating profit was minimal at $2.8M, suggesting that high fixed costs and operating expenses are eroding profitability despite consistent top-line performance. The cash flow from operations of $37.0M partially offsets the net loss, but financing and investing outflows reduced overall liquidity by nearly $10M.
The fast-casual restaurant industry is growing but highly competitive, with consumers increasingly demanding higher-quality ingredients and unique dining experiences. Key players include Chipotle, Five Guys, and Shake Shack, all of whom are investing heavily in supply chain efficiency and digital ordering platforms. Red Robin must differentiate through its premium burger offerings to maintain market share against these well-funded competitors.
| Metric | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|
| Revenue | $1.27B | $1.30B | $1.25B | $1.21B |
| Cost of Revenue | $0 | $0 | $0 | $0 |
| Gross Profit | $1.27B | $1.30B | $1.25B | $1.21B |
| Operating Expenses | $1.32B | $1.30B | $1.30B | $1.21B |
| Operating Income | $-56.4M | $4.5M | $-53.1M | $2.8M |
| G&A | $136.6M | $124.1M | $118.4M | $76.3M |
| Stock-Based Comp | $6.3M | $6.9M | $7.0M | $1.5M |
| D&A | $76.2M | $66.2M | $57.7M | $51.1M |
| Amortization | $2.5M | $2.4M | $2.3M | $1.8M |
| Other OpEx | $1.19B | $1.17B | $1.18B | $1.13B |
| Non-Operating Income | $-20.6M | $-25.5M | $-24.6M | $-25.8M |
| Interest Expense | $20.6M | — | — | — |
| Pre-Tax Income | $-77.1M | $-20.9M | $-77.6M | $-23.0M |
| Income Tax | $747.0K | $310.0K | $-90.0K | $258.0K |
| Continuing Ops | $-77.8M | $-21.2M | $-77.5M | $-23.3M |
| Discontinued Ops | $0 | $0 | $0 | $0 |
| Net Income | $-77.8M | $-21.2M | $-77.5M | $-23.3M |
| Minority Interest | $0 | $0 | $0 | $0 |
| Net to Common | $-77.8M | $-21.2M | $-77.5M | $-23.3M |
| Metric | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|
| Current Assets | $119.6M | $91.8M | $99.4M | $88.9M |
| Cash & Equivalents | $48.8M | $23.6M | $30.7M | $19.9M |
| Accounts Receivable | $21.4M | $21.6M | $19.7M | $19.4M |
| Inventory | $26.4M | $26.8M | $26.7M | $25.7M |
| Prepaid Expenses | $12.9M | $11.8M | $13.6M | $14.2M |
| Other Current Assets | $9.9M | $7.9M | $8.8M | $9.6M |
| Long-Term Assets | $712.6M | $650.2M | $541.9M | $474.6M |
| PP&E (Net) | $318.5M | $261.3M | $181.2M | $158.1M |
| Intangibles | $17.7M | $15.5M | $11.1M | $9.2M |
| Operating Leases | $361.4M | $361.6M | $331.6M | $296.0M |
| Other LT Assets | $14.9M | $11.8M | $18.0M | $11.3M |
| Total Assets | $832.1M | $741.9M | $641.3M | $563.5M |
| Current Liabilities | $216.6M | $186.3M | $189.6M | $198.6M |
| Accounts Payable | $39.3M | $27.7M | $29.8M | $31.4M |
| Current Debt | $3.4M | $0 | — | — |
| Current Leases | $47.4M | $43.8M | $50.1M | $49.1M |
| Deferred Revenue | $43.4M | $36.1M | $27.1M | $27.3M |
| Other Current Liab | $33.7M | $32.5M | $39.7M | $44.0M |
| Long-Term Liabilities | $610.1M | $576.0M | $536.0M | $471.2M |
| Long-Term Debt | $203.2M | $182.6M | $181.6M | $164.7M |
| LT Operating Leases | $393.2M | $383.4M | $345.6M | $300.1M |
| Other LT Liab | $13.8M | $10.0M | $8.8M | $6.5M |
| Total Liabilities | $826.8M | $762.4M | $725.6M | $669.9M |
| Shareholders' Equity | $5.4M | $-20.4M | $-84.3M | $-106.3M |
| Retained Earnings | $-50.6M | $-75.4M | $-153.0M | $-176.2M |
| AOCI | $-34.0K | $-22.0K | $-62.0K | $-60.0K |
| Treasury Stock | $182.8M | — | — | — |
| Total L&E | $832.1M | $741.9M | $641.3M | $563.5M |
| Metric | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|
| Net Income (CFO) | $-77.8M | $-21.2M | $-77.5M | $-23.3M |
| Non-Cash Adjustments | $95.3M | $30.0M | $86.6M | $45.1M |
| Working Capital Changes | $18.1M | $-9.9M | $-2.0M | $15.2M |
| Cash from Operations | $35.5M | $-1.2M | $7.0M | $37.0M |
| Cash from Investing | $-29.6M | $8.2M | $-1.7M | $-24.6M |
| Debt Issuances | $297.2M | $0 | — | — |
| Share Buybacks | $0 | $10.0M | $0 | $0 |
| Cash from Financing | $29.5M | $-33.7M | $2.5M | $-22.3M |
| FX Effect | $-41.0K | $2.0K | $0 | $0 |
| Net Change in Cash | $35.5M | $-26.6M | $7.8M | $-9.9M |
| Beginning Cash | $22.8M | $58.2M | $31.6M | $39.4M |
| Ending Cash | $58.2M | $31.6M | $39.4M | $29.5M |
The company's revenue is driven by its core dining locations serving gourmet burgers, specialty sauces, and sides. Revenue also includes royalties and licensing fees from franchise partners across the United States. Additional streams may include catering services and retail sales of branded food products or merchandise.
Persistent net losses and accumulated retained earnings deficit of -$176.2M raise concerns about long-term solvency. High operating expenses consuming nearly 100% of gross profit indicate significant margin compression pressures. Rising interest rates on substantial long-term debt of $164.7M could exacerbate liquidity constraints. Intense competition from other fast-casual chains threatens market share and pricing power.
Strong brand recognition for premium fast-casual burgers with a loyal customer base seeking higher-quality ingredients. Proprietary secret sauce recipes provide unique product differentiation in a crowded burger market. Franchise model allows rapid expansion with lower capital expenditure compared to corporate-owned locations.
Not financial advice. All content is for informational purposes only. Data may contain errors. Consult a qualified financial advisor before making investment decisions.