Company Performance - Red Robin Gourmet Burgers reported Q2 fiscal 2025 revenues of $283.7 million, a decrease of 5.5% year over year from $300.2 million, and slightly below the Zacks Consensus Estimate of $285 million [2] - Comparable restaurant revenue declined by 3.2%, with traffic falling by 5.5% [2] - Adjusted earnings were 26 cents per share, surpassing the Zacks Consensus Estimate of a loss of 25 cents, and improved from a loss of 38 cents per share in the same quarter last year [3] Margins and Profitability - The company achieved a restaurant-level operating profit of $40.5 million, up from $34.7 million in the prior year, with an operating margin expansion of 270 basis points to 14.5% [4] - Adjusted EBITDA increased by 64% year over year to $22.4 million, with adjusted operating income at $9.8 million, or 3.5% of revenues, compared to a loss of $4.6 million last year [4] Balance Sheet and Liquidity - At the end of the quarter, Red Robin had cash and cash equivalents of $24.4 million and total liquidity of $61.9 million, including credit facility availability [5] - Long-term debt decreased to $163.1 million from $181.6 million at the end of fiscal 2024, reflecting a debt repayment of $20.3 million year-to-date [5] Outlook - For fiscal 2025, Red Robin expects revenues of approximately $1.2 billion, slightly down from the previous estimate of $1.21-$1.23 billion [6] - Management reaffirmed guidance for restaurant-level operating margin of 12-13% and adjusted EBITDA in the range of $60-$65 million, with comparable restaurant sales projected to decline by 3-4% for the remainder of the year [6] Market Position and Estimates - Recent estimates for Red Robin have shown an upward trend, indicating positive investor sentiment [7] - The stock has a Zacks Rank of 2 (Buy), suggesting an expectation of above-average returns in the coming months [9] Industry Comparison - Red Robin operates within the Zacks Retail - Restaurants industry, where Yum China Holdings reported revenues of $2.79 billion, reflecting a year-over-year increase of 4% [10] - Yum China's EPS for the same period was $0.58, compared to $0.55 a year ago, with a Zacks Rank of 3 (Hold) [11]