Why Red Robin Gourmet Burgers, Inc. (RRGB) Surged Last Week

We recently published a list of Small Stocks, But Explosive: These 10 Firms Crushed The Market Last Week. In this article, we are going to take a look at where Red Robin Gourmet Burgers, Inc. (NASDAQ:RRGB) stands against other firms that led last week’s charge.

Red Robin surged by 60.88 percent week-on-week as investors cheered the company’s impressive earnings performance in the first quarter of the year.

In a statement, Red Robin Gourmet Burgers, Inc. (NASDAQ:RRGB) said it swung to a net income of $1.2 million for the first quarter ending April 20, 2025, reversing a net loss of $9.5 million in the same period a year earlier.

Revenues inched up by 1 percent to $392 million from $388 million year-on-year.

A close-up of a burger on a grill with steam rising in the background.

“We are pleased with our strong start to the year as we delivered increases in both sales and profits during the first quarter. We have made significant investments in food quality and hospitality over the past two and a half years and the operational foundation of Red Robin is strong,” said Red Robin Gourmet Burgers, Inc. (NASDAQ:RRGB) President and CEO David Pace.

“Nevertheless, we are far from claiming victory. There is still more work to be done as we continue the comeback journey of this beloved brand and capture the significant opportunity in front of us,” he added.

Despite the strong performance, the company lowered its revenue guidance for the full-year period, now to a range of $1.21 billion to $1.23 billion versus the $1.225 billion to $1.25 billion as expected previously.

Overall, RRGB ranks 7th on our list of firms that led last week’s charge. While we acknowledge the potential of RRGB, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than RRGB and that has 100x upside potential, check out our report about this cheapest AI stock.

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Disclosure: None. This article is originally published at Insider Monkey.