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Get filing alertsRed Robin reports Q2 comp growth, announces $96M sale of 116 restaurants to franchisees
Filed August 12, 2026 · Period ending August 12, 2026 · ~2 min read
Key Changes
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Red Robin announced three refranchising agreements to sell 116 company-owned restaurants for $96 million in gross proceeds, expected to close in Q3 fiscal 2026. Proceeds will be used to refinance debt and support strategic investments.
Exhibit 99.1 view on EDGAR → -
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Q2 2026 comparable restaurant revenue grew 1.3% (1.5% check increase, 0.2% traffic decline). Restaurant-level operating profit margin improved 20 basis points to 14.7%, the highest Q2 margin since 2022.
Exhibit 99.1 view on EDGAR → -
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Net income fell to $0.4 million ($0.02 per share) from $4.0 million ($0.21 per share) in Q2 2025, despite improved restaurant margins. Total revenues declined to $277.6 million from $283.7 million.
Exhibit 99.1 view on EDGAR → -
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Red Robin had $167.2 million in outstanding borrowings and $47.8 million in total liquidity as of July 12, 2026. The company plans to use refranchising proceeds to refinance debt.
Exhibit 99.1 view on EDGAR → -
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Fiscal 2026 guidance reaffirmed: 0.5%–1.5% comparable revenue growth, ~13.0% restaurant-level operating profit, $70M–$73M adjusted EBITDA. Guidance excludes refranchising impacts pending transaction close.
Exhibit 99.1 view on EDGAR →
Summary
Red Robin disclosed second quarter fiscal 2026 results and announced a significant refranchising initiative. The company reported 1.3% comparable restaurant revenue growth driven by higher check averages, though guest traffic declined slightly.
Restaurant-level operating profit margin improved 20 basis points to 14.7%, the strongest second quarter margin in four years, but net income fell sharply to $0.4 million from $4.0 million in the prior year quarter as total revenues declined.
The headline development is the announced sale of 116 company-owned restaurants to three experienced franchise operators for $96 million in gross proceeds, expected to close in the third quarter. This represents a substantial shift in Red Robin's operating model—the company is converting roughly $96 million a third of its footprint to franchised operations. Management stated the proceeds will provide financial flexibility to refinance the company's $167.2 million in outstanding debt and support strategic investments. The balance sheet now shows $53.8 million in assets held for sale, reflecting the restaurants subject to these agreements. For retail holders, the refranchising is a material capital allocation decision that trades operating control and revenue for debt reduction and a lighter asset base. The company reaffirmed its fiscal 2026 guidance but noted it will update targets once the transactions close. Watch for the actual closing of these sales in Q3 and management's updated guidance incorporating the structural changes to the business model.
Section-by-Section Diff
Event · Item 2.02 — Results of Operations and Financial Condition
Red Robin disclosed Q2 FY2026 financial results via press release; detailed figures not included in 8-K body.
Added in current filing · verify on EDGAR →
On August 12, 2026, Red Robin Gourmet Burgers, Inc. (the "Company") issued a press release describing selected financial results for the fiscal second quarter ended July 12, 2026.
Red Robin announced financial results for its fiscal second quarter ended July 12, 2026. The 8-K references a press release (Exhibit 99.1) containing the detailed results, but the body of the filing does not disclose specific revenue, earnings, or operational metrics.
Event · Exhibit 99.1
Added in current filing · view on EDGAR →
Total revenues $ 277.6 $ 283.7 $ 655.9 $ 676.1 Restaurant revenues $ 272.6 $ 279.3 $ 643.7 $ 665.1 Comparable restaurant revenue(1) 1.3 % (1.3) % 0.2 % 1.3 % Income (loss) from operations $ 6.2 $ 9.8 $ 11.7 $ 18.9 ... Restaurant Level Operating Profit(2) $ 40.1 $ 40.5 $ 94.8 $ 95.5 Restaurant Level Operating Profit Margin(2) 14.7 % 14.5 % 14.7 % 14.4 % Net income (loss) $ 0.4 $ 4.0 $ (1.8) $ 5.2 Adjusted EBITDA(2) $ 18.9 $ 22.4 $ 46.2 $ 50.3 Net income (loss) per share - diluted $ 0.02 $ 0.21 $ (0.10) $ 0.28
Red Robin reported second quarter 2026 total revenues of $277.6 million, down from $283.7 million in the prior year quarter. Comparable restaurant revenue increased 1.3%, driven by a 1.5% increase in average guest check partially offset by a 0.2% decrease in guest traffic. Restaurant level operating profit margin improved 20 basis points to 14.7%, the highest second quarter margin since 2022. Net income was $0.4 million ($0.02 per diluted share) compared to $4.0 million ($0.21 per diluted share) in the prior year quarter.
Added in current filing · view on EDGAR →
The Company is reaffirming its previously issued fiscal 2026 guidance, presented below. This guidance does not contemplate any impacts from the announced refranchising transactions due to uncertainty with the timing of the completion of the transactions. The Company expects to update guidance upon completion of these transactions. ... •Comparable Restaurant Revenue growth, excluding deferred loyalty revenue, of 0.5% to 1.5%; •Restaurant level operating profit of approximately 13.0%; •Adjusted EBITDA of $70 million to $73 million; •Capital expenditures of $25 million to $30 million.
Red Robin reaffirmed its fiscal 2026 guidance: comparable restaurant revenue growth of 0.5% to 1.5%, restaurant level operating profit of approximately 13.0%, adjusted EBITDA of $70 million to $73 million, and capital expenditures of $25 million to $30 million. The guidance does not include impacts from the announced refranchising transactions, which will be incorporated upon closing.
Added in current filing · view on EDGAR →
Current assets held for sale 53,791 —
Red Robin's balance sheet as of July 12, 2026 shows $53.8 million in current assets held for sale, up from zero at fiscal year-end December 28, 2025. This reflects the 116 restaurants subject to the announced refranchising agreements expected to close in the third quarter.
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Figures/quotes linked to EDGAR · Narrative written by AI · Aug 13, 2026 · How we verify