Red Robin Q2 Margins Rise on Labor Gains
Red Robin Gourmet Burgers(NASDAQ:RRGB) reported fiscal second quarter 2025 results on Aug. 13, 2025, with GAAP revenues of $283.7 million, a comparable restaurant revenue decline of 3.2%, and a 270 basis point year-over-year improvement in restaurant-level operating profit margin, led by labor efficiencies. Management reaffirmed full-year adjusted EBITDA (non-GAAP) guidance of $60 million to $65 million, launched the new value-oriented Big Yum burger promotion, and accelerated efficiency and capital plans under the new First Choice turnaround strategy.
Restaurant-level operating margin reached 14.5%, a 270 basis point year-over-year increase, fully attributable to 300 basis points of labor cost reduction. Guest satisfaction scores remained stable or improved, despite tighter labor controls.
Sustaining labor productivity gains without negative impact on the guest experience signals both management discipline and operational leverage in turnaround efforts, positioning the company to better absorb future cost inflation or incremental marketing spend.
Source Fool.com
