Red Robin (RRGB) Reports Q3 Loss, Beats Revenue Estimates

Core Insights - Red Robin (RRGB) reported a quarterly loss of $0.7 per share, which is better than the Zacks Consensus Estimate of a loss of $0.78, and an improvement from a loss of $1.13 per share a year ago, indicating a positive earnings surprise of +10.26% [1] - The company achieved revenues of $265.13 million for the quarter ended September 2025, surpassing the Zacks Consensus Estimate by 0.97%, although this represents a decline from $274.64 million in the same quarter last year [2] - Red Robin has exceeded consensus EPS estimates three times in the last four quarters, indicating a trend of improving performance [2] Financial Performance - The stock has underperformed the market, losing approximately 14.6% since the beginning of the year, while the S&P 500 has gained 14.4% [3] - The current consensus EPS estimate for the upcoming quarter is -$0.27, with expected revenues of $275.48 million, and for the current fiscal year, the estimate is -$0.60 on revenues of $1.21 billion [7] Industry Context - The Retail - Restaurants industry, to which Red Robin belongs, is currently ranked in the bottom 13% of over 250 Zacks industries, suggesting a challenging environment for the sector [8] - Empirical research indicates a strong correlation between near-term stock movements and trends in earnings estimate revisions, which could impact Red Robin's stock performance [5]