Red Robin Gourmet Burgers, Inc. (RRGB) Cooks Up Q1 EPS Beat With New Value Menu

Advertisement

Red Robin Gourmet Burgers, Inc. (NASDAQ:RRGB) served up a Q1 earnings surprise and RRGB stock is reacting today, pushing shares up as much as 17% pre-market trading.

Earnings per share came in at 89 cents compared with $1.27 last year, but beating the consensus estimate of 57 cents. Net income was $11.6 million compared to $14.2 million, according to a company announcement. Sales totaled $418.6 million.

“The steps we’ve taken so far are strengthening our business, enabling us to gain market share, and separating Red Robin from our casual dining competitors,” said Denny Marie Post, Red Robin CEO. “During the first quarter, our everyday value Tavern Double burger menu continued to drive traffic, our teams delivered on improved speed of service, and our recent investments in the growing off-premise use began to gain traction. The early success of these and other initiatives gives us confidence that we are laying the groundwork for improved performance for the balance of the year and beyond.”

Comparable restaurant revenue decreased 1.2% in the quarter compared to the same period a year ago. RRGB reported a 1.7% decrease in guest counts, partially offset by a 0.5% increase in average guest check. Red Robin operates 7,462 locations and franchisees operated another 1,381.

Casual dining chains face trendy and inexpensive fast-casual chains like Chipotle Mexican Grill, Inc. (NYSE:CMG) and Shake Shack Inc (NYSE:SHAK) Industry analyst have voiced concern that the U.S. could be at the start of restaurant recession and over-retailed.

Red Robin management said earnings per diluted share is projected to range from $2.80 to $3.10 with approximately 45% expected in the first half of 2017 and 55% in the second half of 2017.

RRGB stock has gained more than 21% in the last three months, while Chipotle added 17% and Shake Shack lost 2% in the same period.

 


Article printed from InvestorPlace Media, https://investorplace.com/2017/05/red-robin-gourmet-burgers-inc-rrgb-cooks-up-q1-eps-beat-with-new-value-menu/.

©2024 InvestorPlace Media, LLC