Q4 2025 Red Robin Gourmet Burgers Inc Earnings Call Transcript
Key Points
- Red Robin Gourmet Burgers Inc (RRGB) achieved a 53% growth in adjusted EBITDA over 2024, reaching $69.7 million.
- The company saw a notable improvement in traffic in December, outperforming the black box intelligence casual dining index for the first time since Q3 2024.
- Labor efficiency initiatives contributed approximately 180 basis points to restaurant level margins, with a 250 basis points reduction in total labor costs for 2025.
- The introduction of the $9.99 Big Yum value offer resonated well, delivering a 10% guest mix in Q4 and supporting incremental traffic.
- The company successfully reduced general administrative expenses by over $4 million in 2025, with expectations for similar reductions in 2026.
- For the full year, comparable sales were down 0.3%, and Q4 saw a 3.3% decline in comp sales, excluding deferred loyalty revenue.
- Traffic decreased by 3.6% in Q4, contributing to a decline in overall sales performance.
- Total revenues in Q4 were $269 million, a decrease of $16.2 million from 2024, primarily due to a decrease in comp sales and restaurant closures.
- Restaurant level operating margin decreased by 10 basis points compared to Q4 2024, impacted by inflation and lower traffic.
- Beef inflation is expected to remain high in 2026, contributing to continued cost pressures.
Good afternoon everyone and welcome to the Red Robin Gourmet Burgers Incorporated fourth quarter 2025 earnings call. This conference is being recorded. During management's presentation and in response to your questions, they 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 fourth quarter 2025 earnings release on its website at ir.redrobin.com.
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