Shares of Red Robin Gourmet Burgers fell after their Chief Financial Officer, Todd Wilson, highlighted a concerning trend in the industry: a slowdown in consumer traffic. The stock slipped 8% to $9.17 in afternoon trading, despite having seen a 65% increase this year due to the CEO’s efforts to rejuvenate the brand.
Wilson expressed his concerns at an industry conference, stating that Red Robin executives are witnessing a pullback in consumer traffic during the third quarter across the casual-dining sector. He questioned whether this is merely a temporary dip or a broader trend that requires attention. Only time will provide the answer, he added.
Fortunately, Red Robin’s customers have continued to spend, particularly on additional items such as desserts, appetizers, and alcoholic drinks. However, off-premise customers and those using third-party delivery services seem to be more conscious of managing their check sizes.
The implications of this slowdown are yet to be determined, but Red Robin is closely monitoring the situation. Despite the current challenges, they remain focused on providing a satisfying dining experience for their loyal customers.