US casual dining restaurant chain Red Robin Gourmet Burgers has reported a rise in total revenues for the fiscal first quarter (Q1) of 2025 (ended 20 April), reaching $392.4m – a $3.8m rise from $388.5m reported in the same period of the previous year.
The company’s comparable restaurant revenues also witnessed an increase of 3.1%, rising from $378.6m in the previous year to $385.8m.
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Its net income stood at $1.2m, a contrast to the net loss of $9.5m recorded in the same period of the previous year, representing a $10.7m improvement.
Adjusted earnings before interest, taxation, depreciation and amortisation (EBITDA) saw a 108.2% increase, reaching $27.9m against $13.4m in Q1 2024.
Red Robin concluded the sale of three owned properties in Q1, generating gross proceeds of $5.8m, which contributed to the repayment of $17.8m of debt.
With a leadership transition in April 2025 that saw David A Pace step in as president and CEO, the chain is moving forward with strategic changes.
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By GlobalDataThe company has guided its financial and operating performance, noting that these measures may vary annually.
Looking ahead to the second quarter of fiscal 2025, Red Robin anticipates a headwind of almost 240 basis points.
This is attributed to a 2024 benefit from changes in the company’s loyalty programme that will not recur this year, potentially leading to a 3% decline in comparable restaurant sales.
Despite this, the company anticipates adjusted EBITDA to range between $13m and $16m for the upcoming quarter.
Pace said: “We are pleased with our strong start to the year as we delivered increases in both sales and profits during the first quarter. We have made significant investments in food quality and hospitality over the past two and a half years and the operational foundation of Red Robin is strong.
“Nevertheless, we are far from claiming victory. There is still more work to be done as we continue the comeback journey of this beloved brand and capture the significant opportunity in front of us.”
