Q3 2025 Red Robin Gourmet Burgers Inc Earnings Call Transcript
Key Points
- Red Robin Gourmet Burgers Inc (RRGB) reported a sequential improvement in traffic trends, supported by the Big Yummm promotion and growth in off-premise business.
- The company achieved a 90 basis point improvement in restaurant-level operating profit year-over-year, driven by labor efficiency gains.
- The Big Yummm burger deal exceeded expectations, resulting in a 250 basis point sequential traffic improvement from Q2 to Q3.
- Data-driven marketing initiatives showed outsized improvements in traffic and sales for prioritized restaurants, with plans to expand further.
- Off-premise business, including catering, represented approximately 25% of sales in Q3, delivering a 2.9% traffic growth.
- Total revenues for the third quarter were $265.1 million, down from $274.6 million in the same period of fiscal 2024.
- Comparable restaurant revenue declined by 1.2%, with a 3% decline in guest traffic.
- Cost of goods increased due to beef inflation, impacting overall profitability.
- Guest traffic trends slowed in recent weeks, attributed to marketing spend timing shifts and consumer impact from the government shutdown.
- The company expects comparable restaurant sales to decline approximately 3% in the fourth quarter.
Good afternoon, everyone, and welcome to Red Robin Gourmet Burgers, Inc. third-quarter 2025 earnings call. This conference is being recorded. During management's presentation and to your questions, we will be making forward-looking statements about the company's business outlook and expectations. These forward-looking statements and all other statements that are not historical facts reflect management's beliefs and predictions as of today, and therefore, are subject to risks and uncertainties as described in the company's SEC filings.
Management will also discuss non-GAAP financial measures as part of today's conference call. These non-GAAP measures are not prepared in accordance with generally accepted accounting principles, but are intended to illustrate alternative measures of the company's operating performance that may be useful. Reconciliations of the non-GAAP financial measures to the most directly comparable GAAP measures can be found in the earnings release. The company has posted its third quarter 2025 earnings release on its website at ir.redrobin.com. Now I'd like to turn the call over
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