"It is not unprecedented to see a restaurant chain abruptly shut down, but generally such an action comes with a declaration of bankruptcy. For Red Robin, that is not the case, with the chain closing restaurants in California, Illinois, and New Jersey with no warning aside from a note left on the door for would-be patrons. For those who have followed the financials of the company, however, these movements are perhaps not so surprising."
"In fiscal year 2023, the company posted losses of $21.2 million. In 2024 that number skyrocketed to $77.5 million. The final numbers for fiscal year 2025 are not expected until February, however the third quarter numbers show a continued decrease in revenue and significant losses on the year. There is a spark of hope, however, as the year-to-date losses total only $13.7 million, which is a $24.6 million improvement compared to the previous year."
Red Robin abruptly closed restaurants in California, Illinois, and New Jersey with only notes on doors, prompting concern among patrons. The chain has incurred significant losses while restructuring its business model, posting $21.2 million loss in fiscal 2023 and $77.5 million in 2024, with fiscal 2025 third-quarter results showing continued revenue declines. Year-to-date losses total $13.7 million, a $24.6 million improvement from the prior year. Cost-cutting includes shedding 15 unprofitable locations in 2025 as part of a five-point 'North Star' plan that initially targeted closing 70 restaurants to reduce expenses. Comparable sales are expected to fall about 3% in late 2025.
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