Currently, Red Robin is a Zacks Rank #3 (Hold), but that could change based on today’s results. Shares of the company have lost about 4.3% over the past month. The company was 0.5% above this mark going into regular trading hours Tuesday, but the stock dropped 4.8% during the day.
The stock is currently down 14.3% to $57.95 per share in after-hours trading shortly after its earnings report was released.
Missed earnings estimates. The company posted adjusted earnings of $0.69 per share, missing the Zacks Consensus Estimate of $0.74 per share. Investors should note that this consensus projection has trended marginally upward over the duration of the quarter.
Missed revenue estimates. The company saw revenue figures of $421.5 million, missing our consensus estimate of $430.6 million.
Red Robin saw only the most marginal 0.2% increase in revenues year over year, as well as a 0.1% increase in comparable restaurant guest counts.
“While our sales were disappointing in the first quarter, we continued to do much better than casual dining on traffic according to Black Box Intelligence, outpacing the sector by 230 points. This makes our seventh quarter in a row of gaining market share. We did this by driving our off-premise sale by almost 40% year-over-year, increasingly going where the guests want us to be,” said CEO Denny Marie Post.
A large part of the company’s shortcomings are a result of increased cost of sales (90 basis points), restaurant operating expenses (70 basis points), and occupancy costs (40 basis points)—only slightly counteracted by its decrease in labor costs (70 basis points).
Looking ahead, Post said, “We are taking steps to improve sales and traffic trends while continuing to make strides on productivity, which is critical to ensure we can deliver great service and value despite rising costs.”
Here’s a graph that looks at Red Robin’s recent earnings performance:Red Robin Gourmet Burgers, Inc. Price, Consensus and EPS Surprise
Red Robin Gourmet Burgers, Inc. is a casual dining restaurant chain that operates through its wholly-owned subsidiary. The company has more than 500 restaurants across the United States and Canada.
Check back later for our full analysis on Red Robin’s earnings report!
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