Red Robin (NASDAQ:RRGB) earnings for the burger chain’s fiscal first quarter of 2020 have RRGB stock falling on Wednesday. That comes after reporting adjusted losses per share of $6.66 on revenue of $306.06 million. Neither of these was able to match Wall Street’s estimates of -$1.10 per share or revenue of $333.84 million.
Let’s take a deeper dive into what went wrong during the most recent Red Robin earnings report below.
- Adjusted per-share losses are an incredible drop from the company’s adjusted EPS of 19 cents in fiscal Q1 2019.
- Revenue is sitting 25.3% lower than the 409.87 million reported in the same period of the year prior.
- Operating loss of $158.23 million is a negative switch year-over-year from operating income of $3.4 million.
- The Red Robin earnings also have it reporting a net loss of $174.3 million.
- That’s a massive decline next to the company’s net income of $639,000 from the same time last year.
Paul J.B. Murphy III, president and CEO of Red Robin, said this of the earnings.
“We entered 2020 with accelerating business momentum, generating positive comparable restaurant revenue of 3.7% and positive Guest counts of 0.9% through the end of our second fiscal period. However, the COVID-19 pandemic resulted in an immediate shift of our priorities, inclusive of pivoting to a 100% off-premise model, the preservation of liquidity and the reduction of costs amid the ongoing uncertainty.”
Red Robin isn’t updating its guidance in the current earnings report. The company says the novel coronavirus’ effects are still causing too many uncertainties to do so. This has it following a trend set by plenty of other companies.
RRGB stock was down 11.2% as of Wednesday afternoon.
As of this writing, William White did not hold a position in any of the aforementioned securities.