What Happened?
Shares of burger restaurant chain Red Robin (NASDAQ:RRGB)
jumped 7.8% in the morning session after the company released selected preliminary financial results for its third fiscal quarter of 2025 and announced leadership changes. In a press release, the company described its early, unaudited financial performance for the period. At the same time, Red Robin announced that its Chief Financial Officer, Todd Wilson, would depart effective December 12, 2025. The company also promoted Jesse Griffith to Chief Operations Officer. The stock's positive movement suggested investors reacted favorably to the preliminary earnings guidance, viewing it as more significant than the executive shuffle.
After the initial pop the shares cooled down to $4.83, up 3.6% from previous close.
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What Is The Market Telling Us
Red Robin’s shares are extremely volatile and have had 61 moves greater than 5% over the last year. In that context, today’s move indicates the market considers this news meaningful but not something that would fundamentally change its perception of the business.
The previous big move we wrote about was 3 days ago when the stock dropped 4.5% on the news that investors grew cautious ahead of the company's upcoming earnings report for the quarter ended September 2025, as profit expectations were recently revised downward. While Wall Street anticipated a year-over-year improvement in earnings, it also foresaw lower revenues. Projections indicated the casual restaurant chain would post a quarterly loss of $0.78 per share. At the same time, expected revenues of $262.59 million represented a 4.4% decline from the year-ago quarter. The negative sentiment was likely driven by the consensus earnings per share estimate for the quarter, which had been lowered by 5.88% over the previous 30 days.
Red Robin is down 14.8% since the beginning of the year, and at $4.83 per share, it is trading 35.1% below its 52-week high of $7.44 from July 2025. Investors who bought $1,000 worth of Red Robin’s shares 5 years ago would now be looking at an investment worth $345.
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