Burger restaurant chain Red Robin (NASDAQ: RRGB) will be reporting results this Monday after the bell. Here’s what to look for.
Red Robin beat analysts’ revenue expectations by 1.6% last quarter, reporting revenues of $283.7 million, down 5.5% year on year. It was a strong quarter for the company, with a beat of analysts’ EPS estimates and an impressive beat of analysts’ EBITDA estimates.
Is Red Robin a buy or sell going into earnings? Read our full analysis here, it’s free for active Edge members.
This quarter, analysts are expecting Red Robin’s revenue to decline 6.5% year on year to $256.7 million, a further deceleration from the 1.1% decrease it recorded in the same quarter last year. Adjusted loss is expected to come in at -$0.78 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 a history of exceeding Wall Street’s expectations, beating revenue estimates every single time since going public by 1.3% on average.
Looking at Red Robin’s peers in the sit-down dining segment, some have already reported their Q3 results, giving us a hint as to what we can expect. Bloomin' Brands’s revenues decreased 10.6% year on year, beating analysts’ expectations by 2.7%, and First Watch reported revenues up 25.6%, topping estimates by 1.9%. Bloomin' Brands traded down 8% following the results while First Watch was up 13%.
Read our full analysis of Bloomin' Brands’s results here and First Watch’s results here.
Investors in the sit-down dining segment have had fairly steady hands going into earnings, with share prices down 1.2% on average over the last month. Red Robin is down 24.8% during the same time and is heading into earnings with an average analyst price target of $11 (compared to the current share price of $4.75).
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