Red Robin Gourmet Burgers (RRGB) Q2 2026 earnings summary

Executive summary

• Achieved strongest Q2 traffic and restaurant-level operating profit margins in several years, reflecting disciplined execution of the First Choice plan.

• Announced three refranchising agreements for 116 restaurants, expected to generate $96 million in gross proceeds and enhance financial flexibility.

• Operational discipline, guest satisfaction, and labor efficiency initiatives drove improvements, with team engagement and low turnover supporting consistent guest experience.

• Comparable restaurant revenue increased 1.3% in Q2, offsetting declines from restaurant closures.

• Adjusted EBITDA for Q2 2026 was $18.9 million, a 16% decrease year-over-year.

Financial highlights

• Q2 2026 total revenues were $277.6 million, down $6.1 million year-over-year due to restaurant closures, with net income at $0.4 million.

• Restaurant-level operating margin rose 20 basis points to 14.7%, the highest Q2 margin in four years.

• Adjusted EBITDA was $18.9 million, down from $22.4 million in Q2 2025, mainly due to increased marketing spend.

• Selling expense increased to $10.4 million, reflecting investment in value platforms and marketing.

• Ended Q2 with $47.8 million in liquidity, including $32.5 million in cash and $25 million in available credit.

Outlook and guidance

• 2026 guidance reaffirmed: comparable restaurant revenue growth of 0.5%–1.5%, restaurant-level operating margin of ~13%, adjusted EBITDA of $70–$73 million, and capital expenditures of $25–$30 million.

• Guidance excludes impact from pending refranchising transactions; updates expected upon transaction completion.

• Expect Q4 to outperform Q3 due to easier comparisons and new marketing initiatives.

• Menu pricing expected to remain steady at 3.2%–3.3% for the year.

• Commodity inflation expected to ease in the back half, with beef and poultry prices moderating.