Q1 2026 Red Robin Gourmet Burgers Inc Earnings Call Transcript
Key Points
- Red Robin Gourmet Burgers Inc (RRGB) reported its strongest traffic performance since Q1 2023 and highest Q1 restaurant operating profit margin since 2021.
- The Big Young Value platform continues to resonate with guests, contributing to high satisfaction scores and strong results across the system.
- Operational discipline and targeted marketing efforts are improving reach and brand awareness, driving guest engagement and frequency.
- Labor efficiency initiatives resulted in approximately 130 basis points of year-over-year savings, with labor percentage at its lowest in three years.
- The company is seeing meaningful adoption of AI tools, optimizing labor scheduling, managing food costs, and enhancing guest service delivery, contributing to operational efficiencies.
- Same-store sales were down 0.6%, with a 1.6% decrease in traffic despite a 1.0% increase in average check.
- Total revenues in Q1 decreased by $14 million from 2025, primarily due to restaurant closures and a decrease in comp sales.
- Adjusted EBITDA decreased by $0.6 million versus the first quarter of 2025.
- The company is facing inflationary pressures and lower traffic, which offset some of the benefits from cost savings and labor efficiencies.
- The economic environment remains challenging, requiring a deliberate focus on highlighting value and disciplined approach to average check.
Good afternoon, everyone, and welcome to the Red Robin Gourmet Burgers, Inc. First Quarter 2026 Earnings Call. This conference is being recorded. During management's presentation and in response to your questions, they will be making forward-looking statements among 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 a 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 first quarter 2026 earnings release on its website at ir.redrobin.com.
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