Red Robin

Financing

A big Red Robin franchisee doubles down on the brand

Lehigh Valley Restaurant Brands recently acquired four locations in Texas, its first outside of Pennsylvania. It’s encouraged by a new turnaround plan at the casual-dining chain.

Financing

Value and catering drive traffic gains for Red Robin

The casual-dining chain’s $9.99 Big Yummm meal continues to draw in price-conscious customers, though sales and traffic were still lower than last year.

The Big Yummm meal launched last month has helped the casual-dining chain chip away at a sharp traffic decline. But it is still expecting sales to be down this year.

The casual-dining burger chain said it laid off a small number of employees as it plans to sell dozens of corporate stores.

The Big Yummm meal is part of the casual-dining chain’s new First Choice plan, which will aim to drive traffic and improve the chain’s finances. It includes refranchising some locations.

The Bottom Line: The casual-dining restaurant chain's stock had lost more than 40% of its value this year as its CEO left. And then the company reported surprise profitability.

The casual-dining burger chain more than doubled its earnings before interest, taxes, depreciation and amortization, or EBITDA, in the first quarter. Its stock price doubled as well.

Hart is stepping down as head of the casual-dining chain after more than two years at the helm. Pace has been chairman of the board since 2019.

The weaker locations have become a drag on the 500-unit casual-dining chain. But the company's earnings surprised investors last quarter, sending its stock surging.

The casual-dining chain spent the past two-and-a-half years changing everything from its burgers to its marketing. Those efforts are finally starting to bear fruit.

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