Red Robin expects second quarter comparable restaurant sales to decrease 4%

Red Robin Gourmet Burgers, Inc. (NASDAQ: RRGB) announced its "First Choice" strategic plan aimed at driving long-term shareholder value while updating its second quarter financial outlook.

The company expects second quarter comparable restaurant sales to decrease approximately 4%, below the previously communicated expectation of a 3% decline. However, Red Robin now expects Adjusted EBITDA to exceed the prior expectation range of $13 million to $16 million.

The "First Choice" plan consists of five key components: maintaining operational foundations from the previous North Star Plan, driving traffic through marketing initiatives, managing expenses and assets to reduce debt, investing in restaurant facilities and technology, and creating a performance-oriented work environment.

"The opportunity for Red Robin is significant, and we've put in motion an integrated plan to make us the 'First Choice' for guests, team members, and investors," said Dave Pace, President and Chief Executive Officer.

The plan includes initiatives to preserve previous progress while building in areas the company considers critical for competition. Red Robin aims to generate resources to strengthen its balance sheet, enhance marketing communication, invest in restaurant facilities and technology, and deliver value to guests.

Todd Wilson, Chief Financial Officer, noted that the Adjusted EBITDA expected in the first half of 2025 already surpasses full-year 2024 results. The company plans to tactically refranchise select company-owned restaurants and markets as part of its expense management strategy.

Red Robin will host an investor conference call to discuss the plan and updated financial expectations. The company expects to report second quarter results in mid-August.

The casual dining chain operates nearly 500 locations in the United States and Canada, including franchised restaurants.

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