Q4 Rundown: Red Robin (NASDAQ:RRGB) Vs Other Sit-Down Dining Stocks
April 1, 2025
As the craze of earnings season draws to a close, here’s a look back at some of the most exciting (and some less so) results from Q4. Today, we are looking at sit-down dining stocks, starting with Red Robin (NASDAQ:RRGB).
Sit-down restaurants offer a complete dining experience with table service. These establishments span various cuisines and are renowned for their warm hospitality and welcoming ambiance, making them perfect for family gatherings, special occasions, or simply unwinding. Their extensive menus range from appetizers to indulgent desserts and wines and cocktails. This space is extremely fragmented and competition includes everything from publicly-traded companies owning multiple chains to single-location mom-and-pop restaurants.
The 13 sit-down dining stocks we track reported a satisfactory Q4. As a group, revenues beat analysts’ consensus estimates by 0.9% while next quarter’s revenue guidance was 2.4% below.
Amidst this news, share prices of the companies have had a rough stretch. On average, they are down 13.5% since the latest earnings results.
Red Robin (NASDAQ:RRGB)
Known for its bottomless steak fries, Red Robin (NASDAQ:RRGB) is a chain of casual restaurants specializing in burgers and general American fare.
Red Robin reported revenues of $285.2 million, down 7.7% year on year. This print was in line with analysts’ expectations, but overall, it was a mixed quarter for the company with a solid beat of analysts’ EBITDA estimates.
G.J. Hart, Red Robin's President and Chief Executive Officer said, "The last two years have been transformational years for Red Robin, and I'm proud to say 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. We also gained traction in our cost-saving initiatives to translate our top-line momentum during the fourth quarter into a 19.0% increase in adjusted EBITDA. While financial results for 2024 fell well below our original expectations, we've made substantial improvements to the guest experience and believe we still have a significant opportunity ahead of us to reach the full potential of our iconic brand."
Red Robin delivered the weakest full-year guidance update of the whole group. The stock is down 17.7% since reporting and currently trades at $3.73.
Founded by Norman Brinker in Dallas, Brinker International (NYSE:EAT) is a casual restaurant chain that operates the Chili’s, Maggiano’s Little Italy, and It’s Just Wings banners.
Brinker International reported revenues of $1.36 billion, up 26.5% year on year, outperforming analysts’ expectations by 9.6%. The business had an incredible quarter with an impressive beat of analysts’ EPS estimates and a solid beat of analysts’ EBITDA estimates.
Brinker International scored the biggest analyst estimates beat and highest full-year guidance raise among its peers. Although it had a fine quarter compared to its peers, the market seems unhappy with the results as the stock is down 4.9% since reporting. It currently trades at $147.12.
Owner of the iconic Australian-themed Outback Steakhouse, Bloomin’ Brands (NASDAQ:BLMN) is a leading American restaurant company that owns and operates a portfolio of popular restaurant brands.
Bloomin' Brands reported revenues of $972 million, down 18.6% year on year, falling short of analysts’ expectations by 9.9%. It was a disappointing quarter as it posted full-year EPS guidance missing analysts’ expectations.
Bloomin' Brands delivered the weakest performance against analyst estimates and slowest revenue growth in the group. As expected, the stock is down 40.4% since the results and currently trades at $7.09.
Operating a franchise model, Dine Brands (NYSE:DIN) is a casual restaurant chain that owns the Applebee’s and IHOP banners.
Dine Brands reported revenues of $204.8 million, flat year on year. This number beat analysts’ expectations by 1.9%. More broadly, it was a softer quarter as it recorded a significant miss of analysts’ EBITDA and EPS estimates.
The stock is down 1.8% since reporting and currently trades at $23.07.
Doubling as a hospitality services provider for hotels and resorts, The One Group Hospitality (NASDAQ:STKS) is an upscale restaurant company that operates STK Steakhouse and Kona Grill.
The ONE Group reported revenues of $221.9 million, up 147% year on year. This print topped analysts’ expectations by 1.9%. However, it was a slower quarter as it logged a significant miss of analysts’ EPS estimates.
The ONE Group delivered the fastest revenue growth among its peers. The stock is up 3.1% since reporting and currently trades at $2.99.
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