Red Robin considers closing 70 locations amid financial woes

Published On Mar 5, 2025, 4:48 PM

Red Robin is considering the closure of 70 locations to improve its financial position after facing significant losses, reporting a $32.4 million loss in the last quarter. The company plans to sell three properties to generate $5.8 million for debt repayments. Despite these challenges, Red Robin's CEO noted a recent improvement in customer traffic, indicating potential for recovery. The restaurant industry is under pressure as many chains are struggling post-pandemic, leading to restaurant closures across the sector.

Stock Forecasts

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Negative

The financial struggles of Red Robin, alongside the industry-wide challenges affecting many restaurant brands, suggest that investors should be cautious. The planned closures and loss are significant red flags, and while there is a slight recovery in customer traffic, it may not be enough to stabilize the business in the near term.

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