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ENGLEWOOD, Colo. - Red Robin Gourmet Burgers, Inc. (NASDAQ:RRGB) saw its shares jump 11.7% after the restaurant chain reported better-than-expected fourth quarter results and provided an optimistic outlook for fiscal 2025.
The company posted a fourth quarter adjusted loss of $0.94 per share, which was wider than analysts’ estimates of a $0.29 per share loss. Revenue came in at $258.2 million, below the consensus forecast of $285.62 million. However, comparable restaurant revenue increased 3.4% YoY, excluding the impact of deferred loyalty revenue changes.
Red Robin’s adjusted EBITDA rose 19% to $12.7 million in Q4, signaling improved profitability despite lower revenue. The company attributed this to cost-saving initiatives and momentum in top-line growth.
"We began to see the benefit of our work as we progressed through 2024, culminating in a 600-basis point improvement in traffic trends from the first quarter of the year to the fourth," said G.J. Hart, Red Robin’s President and CEO.
Looking ahead, Red Robin provided guidance for fiscal 2025, projecting revenue between $1.225 billion and $1.25 billion. The company also expects adjusted EBITDA (excluding stock-based compensation) of $60 million to $65 million.
Hart added, "2025 is off to a good start with the comparable restaurant revenue momentum we had exiting the fourth quarter, continuing through the first eight weeks of the first quarter."
The company plans to focus on bringing guests back to its restaurants and improving operational efficiency to drive profitability while maintaining an enhanced guest experience.
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