Red Robin Gourmet Burgers, Inc. (RRGB) AI Stock Analysis
RRGB AI stock analysis summary
AI ResearchRed Robin Gourmet Burgers, Inc. operates, develops, and franchises casual-dining restaurants across the United States and Canada. In FY2025, the company generated $1.21B in revenue with a net loss of -$23.3M, while generating $6.2M in free cash flow. As of June 30, 2026, total debt stood at $495.3M against cash of $22.8M, resulting in negative shareholders' equity of -$105.6M.
- Market cap
- $166.5M
- Revenue (TTM)
- $1.19B
- P/E
- — fwd 18.7x
- 1Y return
- 31.1% S&P 500 16.8%
- Avg. target
- $11.33 28.6% vs last close
Bull case
- The company returned to positive free cash flow generation of $6.2M in FY2025, supported by $37.0M in operating cash flow.
- Analysts project profitability to turn positive in the next fiscal year with an EPS estimate of $0.28, representing projected EPS growth of 255.6%.
- RRGB shares gained 117.5% year-to-date and 31.1% over the past year, outperforming the S&P 500 return of 16.8%.
Bear case
- Red Robin carries a heavy leverage profile with total debt of $495.3M against cash of $22.8M and negative shareholders' equity of -$105.6M as of June 30, 2026.
- Revenue has contracted in consecutive years, falling 4.2% in FY2024 and 3.1% in FY2025 to $1.21B.
- The company recorded a trailing twelve-month net profit margin of -2.5% and a net loss of -$23.3M in FY2025.
What Red Robin Gourmet Burgers does
Red Robin Gourmet Burgers, Inc. is a casual-dining restaurant operator and franchisor founded in 1969 and headquartered in Greenwood Village, Colorado. The company operates a network of approximately 531 restaurants across the United States and Canada, comprising 430 company-owned establishments and 101 franchise-operated locations. Red Robin is recognized for signature burgers and shareable pizzas, alongside a menu of appetizers, salads, soups, sandwiches, seafood, and entrees. Its beverage offerings include milkshakes, specialty drinks, cocktails, wines, and beers, serving patrons through full-service dining environments.
Growth and profitability
Red Robin's annual revenue rose from $1.16B in FY2021 to $1.27B in FY2022 and $1.30B in FY2023, before contracting to $1.25B in FY2024 and $1.21B in FY2025. Gross margin improved from 33.9% in FY2021 to 68.0% in FY2025. The company posted net losses across each period, including -$77.5M in FY2024 and -$23.3M in FY2025, alongside an operating margin of 0.2% in FY2025. Over the trailing twelve months, revenue was $1.19B with a net profit margin of -2.5% and EPS of -$1.70. In the quarter ended June 30, 2026, quarterly revenue fell 2.1% year-over-year while quarterly earnings fell 90.5%.
Balance sheet and cash flow
As of June 30, 2026, Red Robin held $22.8M in cash and short-term investments compared to $495.3M in total debt, bringing net debt to $472.4M. Shareholders' equity was -$105.6M against total assets of $528.7M, and the current ratio was 0.71. Operating cash flow totaled $37.0M in FY2025, supporting capital expenditures of $30.8M and free cash flow of $6.2M. Cash deployed toward share buybacks totaled $479,000 in FY2025, while the share count increased 39.2% over five years.
Valuation and performance
Red Robin has a market capitalization of $166.5M and an enterprise value of $619.0M. The stock trades at a forward P/E of 18.7x, above the 14.1x median for its US-listed Consumer Cyclical peers. Its EV to EBITDA ratio is 13.8x, compared to the peer median of 11.1x, while its price-to-sales multiple of 0.1x sits below the peer median of 0.7x. Over the past year, RRGB returned 31.1%, outpacing the 16.8% gain for the S&P 500, though its five-year return of -57.4% lagged the benchmark return of 83.0%.
What analysts expect
Wall Street sentiment includes 3 Strong Buy ratings and no Buy, Hold, Sell, or Strong Sell recommendations. The mean price target of $11.33 represents potential upside of 28.6% from the last close of $8.81 on October 16, 2026. For the fiscal year ending December 31, 2026, consensus estimates project an EPS of -$0.18 on revenue of $1.17B. For the next fiscal year, 3 analysts project positive EPS of $0.28 on $1.13B in revenue. Red Robin beat EPS estimates in 3 of the last 4 quarters, with next earnings scheduled for November 4, 2026.
Key risks and what to watch
- The current ratio of 0.71 as of June 30, 2026 indicates potential short-term liquidity constraints.
- Quarterly earnings declined 90.5% year-over-year in the period ending June 30, 2026, highlighting ongoing operating volatility.
- With a beta of 2.49 and short interest at 12.0% of the float, the stock exhibits elevated price volatility.
- Total share count increased 39.2% over five years, presenting ongoing dilution risk to existing shareholders.
AI-generated research summary. Written with AI from Quotelinks data as of October 16, 2026 and checked so every figure matches that data. For information only, not investment advice. Disclaimer
About this RRGB AI stock analysis
This page is an AI-written research summary of Red Robin Gourmet Burgers, Inc. (RRGB). The text was generated on October 30, 2026 from Quotelinks data as of October 16, 2026 (company profile, annual results, latest balance sheet, valuation, price performance and analyst estimates). An automatic check rejects any draft that contains a figure not found in that data. It is not investment advice; verify figures on the linked tabs before making decisions.
Related: RRGB income statement, RRGB balance sheet, RRGB key metrics, RRGB analyst forecast, RRGB chart. See the RRGB stock overview for the latest quote and news.
RRGB AI stock analysis FAQ
What does Red Robin Gourmet Burgers do?
Red Robin Gourmet Burgers, Inc. operates, develops, and franchises casual-dining restaurants across the United States and Canada, with approximately 531 restaurants comprising 430 company-owned and 101 franchise locations.
What are Red Robin's recent financial results?
For FY2025, Red Robin reported revenue of $1.21B and a net loss of -$23.3M, or -$0.66 per share, while generating $6.2M in free cash flow.
How much debt does Red Robin have?
As of June 30, 2026, Red Robin had $495.3M in total debt and $22.8M in cash and short-term investments, resulting in net debt of $472.4M and negative shareholders' equity of -$105.6M.
What are Wall Street analysts forecasting for RRGB?
All 3 covering analysts rate RRGB a Strong Buy with a mean price target of $11.33, implying 28.6% upside from the October 16, 2026 closing price of $8.81.
Does Red Robin pay a dividend?
No, Red Robin does not report a dividend payout, having directed cash toward $30.8M in capital expenditures and $479,000 in share buybacks in FY2025.