Red Robin Posts Best Q1 Margin Since 2021, Keeps 2026 Outlook

Overview

• Red Robin reported a 14.8% restaurant-level operating margin in Q1, up 50 basis points and the best first-quarter result since 2021.
• Comparable sales slipped 0.6% as guest traffic fell 1.6% and average check rose 1.0% with help from the Big Yum Value menu.
• Management said labor changes under its First Choice Plan produced about 130 basis points of year-over-year savings.
• The company closed six restaurants in the quarter and is advancing refranchising to generate cash for debt reduction, with about 20 closures expected in 2026 and an estimated $40 million sales hit from recent closures.
• Leaders maintained 2026 targets for 0.5%–1.5% comparable growth and $70–$73 million in adjusted EBITDA, with pricing around 3%–3.5%, higher marketing into Q2, and roughly 60% of commodity needs hedged.