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Red Robin Earnings: What To Look For From RRGB

StockStory - Tue Feb 27, 1:02AM CST

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Burger restaurant chain Red Robin (NASDAQ:RRGB) will be reporting earnings tomorrow after market close. Here's what to look for.

Last quarter Red Robin reported revenues of $277.6 million, down 3.2% year on year, in line with analyst expectations. It was a mixed quarter for the company, with revenue slightly beating analysts' expectations, driven by better-than-expected same-store sales growth. Its EPS narrowly outperformed Wall Street's estimates. On the other hand, its gross margin and adjusted EBITDA missed analysts' expectations.

Is Red Robin buy or sell heading into the earnings? Read our full analysis here, it's free.

This quarter analysts are expecting Red Robin's revenue to grow 5.1% year on year to $305 million, improving on the 2.4% year-over-year increase in revenue the company had recorded in the same quarter last year. Adjusted loss is expected to come in at -$0.46 per share.

Red Robin Total Revenue

Majority of analysts covering the company have reconfirmed their estimates over the last thirty days, suggesting they are expecting the business to stay the course heading into the earnings. The company missed Wall St's revenue estimates three times over the last two years.

Looking at Red Robin's peers in the sit-down dining segment, some of them have already reported Q4 earnings results, giving us a hint of what we can expect. The Cheesecake Factory's revenues decreased 1.8% year on year, beating analyst estimates by 0.1% and Texas Roadhouse reported revenues up 15.3% year on year, exceeding estimates by 0.3%. The Cheesecake Factory traded up 1.9% on the results, and Texas Roadhouse was flat on the results.

Read our full analysis of The Cheesecake Factory's results here and Texas Roadhouse's results here.

Investors in the sit-down dining segment have had steady hands going into the earnings, with the stocks up on average 1.5% over the last month. Red Robin is down 13.8% during the same time, and is heading into the earnings with analyst price target of $16.5, compared to share price of $9.15.

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