Red Robin Gourmet Burgers, Inc.

Q2 total revenues were $278 million, down $6.1 million from the prior year. Comparable restaurant sales, excluding deferred loyalty revenue, increased 1.3%; average check rose 1.5%, with a 3.3% price increase partly offset by a 1.8% decrease in mix and discounts, and traffic was flat at down 20 basis points. Restaurant-level operating margin was 14.7%, up 20 basis points year over year. General and administrative costs were $17.6 million versus $17.4 million last year; selling expense was $10.4 million versus $6.4 million; and adjusted EBITDA was $18.9 million, down $3.5 million year over year. The company ended Q2 with $23 million of cash and equivalents, $10 million of restricted cash, and total liquidity of $48 million including $25 million of available revolver capacity. 2026 guidance was maintained: comparable restaurant revenue of 0.5% to 1.5%, restaurant-level operating margin of approximately 13%, adjusted EBITDA of $70 million to $73 million, and capital expenditures of $25 million to $30 million.

David Pace framed the quarter as proof that the First Choice plan is working, pointing to better guest engagement, improved satisfaction, and higher restaurant-level profitability. He emphasized disciplined pricing, targeted value offers, and operational execution, and said the company is building momentum across traffic, menu innovation, technology, and labor efficiency. His tone was upbeat but cautious, repeatedly noting the desire not to get “over our skis” while refranchising and refinancing are still being completed.

Mark Graff highlighted the core financials: $278 million in revenue, 1.3% comparable sales growth, 14.7% restaurant-level operating margin, $18.9 million of adjusted EBITDA, and liquidity of $48 million. He said selling expense rose to $10.4 million largely because of investment behind Big Yummm and personalization, while commodity inflation was running at about 5% in the first half and was expected to be closer to a blended 3% in the back half. He also said the company was about 60% locked on 2026 commodity needs and reaffirmed full-year guidance unchanged.

Analysts focused on how sales trended through the quarter and into Q3, and management said traffic improved as the quarter progressed, with positive traffic in the final period of the quarter. Management also said the stronger results did not yet justify raising guidance because the company is waiting on refranchising closings and faces tougher second-half comparisons as Big Yummm laps. On refranchising, management said there is already outside interest in more deals, but the immediate focus is on closing and transitioning the first three transactions smoothly before revisiting further activity.