Red Robin Gourmet Burgers, Inc. — Cyborg Score 5/10
Mixed
Casual Dining & Full-Service Restaurants
Strategic Profile
Red Robin showed a clear operational turnaround in 2025, with adjusted EBITDA growing by 53% to $69.7 million for the full year 2025 and the company's net loss narrowing significantly compared to the previous year. The company's Big YUMMM value offer reached 10% guest mix within the dine-in channel in the fourth quarter, and the platform was expanded with a new menu launched January 26 that integrates deals into the core menu, offering six meal options priced from $9.99 to $16.99.
Cyborg Score Rationale
The company reported trailing twelve-month sales of $1,226.41 million with a 3-year revenue growth rate of 2.3%, while the operating margin stands at 1.1% and net margin is -4.31%, indicating challenges in achieving profitability. The Altman Z-Score of 1.42 places the company in the distress zone, indicating a possibility of bankruptcy within the next two years. However, recent EBITDA improvements suggest operational progress.
Top Insights
Comparable restaurant sales fell 3.1% in the quarter due to a drop in traffic.
Red Robin is pursuing tactical refranchising to reduce debt.
Commodities rose roughly 4% in 2025 and are expected to be about the same in 2026, with beef inflation as the primary outlier.
Red Robin's shares jumped 32.8% in the morning session after the company reported fourth-quarter results that beat expectations and provided an optimistic outlook for 2026.
Named Competitors
Burgers — Quick-service burger chain
Casual Dining — Full-service casual dining with diverse menu
Gourmet Burgers — Fast-casual burger and charburger specialist
Recent Developments
(February 2026) Q4 2025 earnings beat with 53% EBITDA growth to $69.7M and 2026 guidance signaling confidence in financial improvement
(January 2026) New value menu featuring Big YUMMM meal platform launched with six options priced $9.99-$16.99 and expanded beyond burgers
(December 2025) CFO Todd Wilson resigned effective December 12, 2025; Jesse Griffith promoted to Chief Operations Officer
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