Red Robin reports best same-store sales since 2023

Red Robin’s turnaround continues to pick up steam.

Preliminary same-store sales at the casual-dining chain rose 3.9% year over year in the third quarter ended Oct. 4. It was Red Robin’s best same-store sales result since the first quarter of 2023 and its second straight quarter of positive same-store sales.

Traffic declined 1.7% in the quarter, while average check size increased by 5.6%.

Value meals boost sales

In a statement, CEO David Pace said Red Robin’s Big Yummm value meals helped drive sales last quarter by giving customers an “accessible entry point” to the brand. Big Yummm meals come with an entree, bottomless fries, and a drink starting at $9.99.

The value meals are a key part of the chain’s First Choice turnaround plan that began last July. The plan is focused on improving both Red Robin’s restaurant performance as well as its finances.

Earnings release delayed

Englewood, Colorado-based Red Robin published the preliminary sales figures Tuesday, along with an announcement that it is pushing back its full earnings release to Nov. 18. It was previously scheduled to report earnings tomorrow.

Financial activity and refinancing

The delay stems from a flurry of financial activity in the quarter, Red Robin said. The company closed three deals to refranchise 108 restaurants and also refinanced its credit facility. The company said it needs more time to complete its financial statements given the complexities associated with those transactions. It added that the rescheduling is not related to any significant changes in its financial condition or operating performance.

Red Robin stock was down about 2.5% on Tuesday afternoon.