Red Robin Gourmet Burgers shares have dropped about 23.6% in the month since its latest earnings report, underperforming the S&P 500. The company posted second-quarter fiscal 2026 adjusted earnings of 12 cents per share, missing the consensus estimate of 28 cents by 57.1% and declining 53.8% year over year, while quarterly revenues of $277.64 million fell 2.1% year over year but beat the consensus mark of $276 million by 0.6%. Comparable restaurant revenues rose 1.3%, supported by a 1.5% increase in average guest check despite a 0.2% decline in traffic, and restaurant-level operating profit margin expanded 20 basis points to 14.7%, the highest second-quarter margin since 2022. During the quarter, Red Robin announced three refranchising agreements covering 116 company-owned restaurants, expected to generate approximately $96 million in gross proceeds and close in the third quarter, with proceeds earmarked to reduce debt. The company reaffirmed its fiscal 2026 guidance, expecting comparable restaurant revenue growth of 0.5% to 1.5%, restaurant-level operating profit margin of approximately 13%, adjusted EBITDA of $70 million to $73 million, and capital expenditures of $25 million to $30 million, excluding any impact from the refranchising transactions.
Red Robin Gourmet Burgers IncQ2 adjusted EPS of 12 cents missed consensus by 57.1% and fell 53.8% year over year, driving the 23.6% share decline.
