Shares of burger restaurant chain Red Robin (NASDAQ:RRGB)
jumped 32.8% in the morning session after the company reported fourth-quarter results that beat expectations and provided an optimistic outlook for 2026. For its fourth quarter, Red Robin's adjusted loss per share of $0.41 was better than analyst forecasts, and revenue also topped projections. Although comparable restaurant sales fell 3.1% in the quarter due to a drop in traffic, investors appeared to focus on the company's full-year performance and future guidance. For the full year 2025, adjusted EBITDA grew by 53% to $69.7 million, and the company's net loss narrowed significantly compared to the previous year. Looking ahead, the company projected comparable restaurant revenue growth between 0.5% and 1.5% and adjusted EBITDA between $70 million and $73 million for 2026, signaling confidence in its continued financial improvement.
Burger restaurant chain Red Robin (NASDAQ:RRGB) reported revenue ahead of Wall Street’s expectations in Q4 CY2025, but sales fell by 5.7% year on year to $269 million. Its non-GAAP loss of $0.41 per share was 30.2% above analysts’ consensus estimates.
A number of stocks fell in the afternoon session after the Trump administration's announcement of new global tariffs, reignited trade policy uncertainty. The move came swiftly after the Supreme Court ruled the previous week that the president could not use the International Emergency Economic Powers Act (IEEPA) for such duties, a decision that had initially sent markets higher. However, the administration invoked a different authority, the Trade Act of 1974, to impose a 15% global tariff for up to 150 days. The rapid reimposition of trade barriers creates significant uncertainty for companies across multiple sectors that depend on international supply chains and global trade. Investors are now weighing the potential impact of these new duties on corporate earnings and broader economic activity.
Market swings can be tough to stomach, and volatile stocks often experience exaggerated moves in both directions.
While many thrive during risk-on environments, many also struggle to maintain investor confidence when the ride gets bumpy.
Stocks trading in the $1-10 range are generally smaller players with less risk than their penny stock counterparts.
But that doesn’t mean the underlying businesses are cheap, and we advise caution as many have questionable fundamentals.
From fast food to fine dining, restaurants play a vital societal role. But the side dish is that they’re quite difficult to operate because high inventory and labor costs generally lead to thin margins at the store level.
This leaves little room for error if demand dries up, and it seems like the market has some reservations as the industry has tumbled by 5.9% over the past six months. This drop is a stark contrast from the S&P 500’s 11.1% gain.
The stocks in this article have caught Wall Street’s attention in a big way, with price targets implying returns above 20%.
But investors should take these forecasts with a grain of salt because analysts typically say nice things about companies so their firms can win business in other product lines like M&A advisory.
Volatility cuts both ways - while it creates opportunities, it also increases risk, making sharp declines just as likely as big gains.
This unpredictability can shake out even the most experienced investors.
Red Robin has gotten torched over the last six months - since June 2025, its stock price has dropped 22.6% to $4.22 per share. This may have investors wondering how to approach the situation.
Shares of burger restaurant chain Red Robin (NASDAQ:RRGB)
jumped 6.5% in the afternoon session after Jefferies upgraded the stock to Buy from Hold and increased its price target.
Shares of burger restaurant chain Red Robin (NASDAQ:RRGB)
fell 1.8% in the afternoon session after the company announced the appointment of Christopher Meyer as its interim Chief Financial Officer. Mr. Meyer replaced the departing Todd Wilson, effective December 1. This executive change came at a time when Red Robin's financial health showed signs of distress, with reports highlighting a negative net margin and persistent losses. The company's stock is known for being highly volatile. The management shift seemed to create uncertainty for investors, contributing to the stock's decline despite a recent third-quarter revenue report that was better than analysts had predicted.
Let’s dig into the relative performance of Bloomin' Brands (NASDAQ:BLMN) and its peers as we unravel the now-completed Q3 sit-down dining earnings season.
Red Robin’s third quarter results reflected both ongoing challenges and early progress from its new "First Choice" plan. Management credited sequential improvements in guest traffic to the Big Yummm burger promotion, enhanced off-premise sales, and operational efficiencies, particularly in labor. CEO David Pace cited a “90 basis point improvement year-over-year in restaurant level operating profit,” attributing these gains to process changes and technology adoption that maintained guest satisfaction while improving efficiency. Despite a year-over-year sales decline, cost management and targeted promotions supported profitability.
Stocks trading in the $1-10 range are generally smaller players with less risk than their penny stock counterparts.
But that doesn’t mean the underlying businesses are cheap, and we advise caution as many have questionable fundamentals.
Earnings results often indicate what direction a company will take in the months ahead. With Q3 behind us, let’s have a look at Red Robin (NASDAQ:RRGB) and its peers.
