revenue $277.6M, net income $386,000. Red Robin to refranchise 116 restaurants for ~ as Q2 operating income falls 36%

Filed August 12, 2026 · Period ending July 12, 2026 · Compared to 10-Q Aug 14, 2025 · ~2 min read

Key Changes

• high

  Announced sale of 116 company-owned restaurants (31% of the base) to franchisees for ~$96M, with proceeds earmarked for debt repayment. None had closed as of quarter-end; each faces landlord consents, liquor license transfers, and purchaser financing conditions.

  Notes: Pending Refranchising Transactions verify on EDGAR →
• high

  Operating income fell 36% to $6.2M (2.2% margin) from $9.8M (3.5% margin) in Q2 FY25, driven by a 63% jump in selling expenses to $10.4M as the company resumed paid media spend after intentionally reducing it in the prior year.

  MD&A: Operating Income & Selling Expenses verify on EDGAR →
• high

  Net income dropped 90% to $0.4M from $4.0M in Q2 FY25 on higher income tax expense (-$88,000 YoY drag), despite a $52,000 improvement in non-operating items. The net-income decline did not come from operations.

  MD&A: Net Income & Below-the-Line Items verify on EDGAR →