Red Robin reports sales growth and market share gains

Red Robin Gourmet Burgers and Brews is reporting a turnaround in performance, driven by its ‘First Choice’ plan and improved customer traffic. Same-store sales rose 1.3% year over year in the second quarter, and the company’s stock increased by more than 22% following the announcement. Executives noted that traffic, which was nearly flat in the second quarter, turned positive in the final month of the period, outperforming the industry by 40 basis points according to Black Box Intelligence.

The company’s strategy involves a focus on value, such as $9.99 Big Yummm meals and a new $17.99 ‘Dinner Double Feature’ designed to boost evening business. Red Robin is also utilizing data and algorithms to engage in ‘micro-targeting,’ allowing the chain to identify where customers are dining when they are not at Red Robin and subsequently targeting them with personalized digital advertising and loyalty offers.

This data-driven approach has helped the 500-unit chain gain market share in areas with direct competitors. In June, the company gained 70 basis points of market share in competitive areas, a figure that rose to 80 basis points in July. Recent menu expansions include premium sliders, an increased chicken-wing lineup, and the addition of Garage Beer to the menu.