Burger restaurant chain Red Robin (NASDAQ: RRGB) will be reporting results tomorrow after market hours. Here’s what investors should know.
Red Robin met analysts’ revenue expectations last quarter, reporting revenues of $285.2 million, down 7.7% year on year. It was a mixed quarter for the company, with a solid beat of analysts’ EBITDA estimates but a significant miss of analysts’ EPS estimates.
Is Red Robin a buy or sell going into earnings? Read our full analysis here, it’s free.
This quarter, analysts are expecting Red Robin’s revenue to be flat year on year at $387.5 million, improving from the 7% decrease it recorded in the same quarter last year. Adjusted loss is expected to come in at -$0.49 per share.
Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Red Robin has missed Wall Street’s revenue estimates three times over the last two years.
Looking at Red Robin’s peers in the sit-down dining segment, some have already reported their Q1 results, giving us a hint as to what we can expect. Brinker International delivered year-on-year revenue growth of 27.2%, beating analysts’ expectations by 2.6%, and BJ's reported revenues up 3.2%, in line with consensus estimates. Brinker International traded down 16.4% following the results while BJ's was up 13.4%.
Read our full analysis of Brinker International’s results here and BJ’s results here.
There has been positive sentiment among investors in the sit-down dining segment, with share prices up 7.5% on average over the last month. Red Robin is up 19.8% during the same time and is heading into earnings with an average analyst price target of $9.45 (compared to the current share price of $3.33).
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