RED ROBIN GOURMET BURGERS INC

Casual-dining chain posting another net loss with declining traffic, unit closures and a looming refinancing of ~$170M of debt.

Strengths

• Net loss narrowed sharply (from $77.5M to $23.3M) and adjusted EBITDA rose ~53% as the turnaround plan takes hold
• Positive operating cash flow (OCF margin 3.1%) and a recognizable national brand

Risks

• Negative net margin (-1.9%), negative ROA, and a near-term refinancing wall (debt due Sept 2027) with weak current ratio (0.45)
• Comparable sales and guest counts falling; reported ROE is an artifact of negative book equity, not genuine returns

Notable findings

• Exec changeRecent 8-K item 5.02 8-K ↗
• Negative equityNegative book equity (debt/equity -1.55)
• Net lossNet loss (net margin -1.9%)
• Weak liquidityCurrent ratio 0.45 (<1)
• Customer concentration~24% of revenue from one customer/distributor — 9 % 23
• Insider sellingInsider selling — 5 open-market sale(s) by 2 insider(s) (cluster of 2 insiders, last 6mo) Form 4 ↗