Red Robin (RRGB) Reports Earnings Tomorrow: What To Expect

StockStory
2024-11-05
Red Robin (RRGB) Reports Earnings Tomorrow: What To Expect

Burger restaurant chain Red Robin (NASDAQ:RRGB) will be reporting earnings tomorrow after market hours. Here’s what to expect.

Red Robin beat analysts’ revenue expectations by 2.7% last quarter, reporting revenues of $300.2 million, flat year on year. It was a mixed quarter for the company: the company lowered its full-year revenue guidance and adjusted EBITDA guidance for the same period missed expectations.

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 decline 2.5% year on year to $270.8 million, in line with the 3.2% decrease it recorded in the same quarter last year. Adjusted loss is expected to come in at -$0.96 per share.

The majority of analysts covering the company have 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 twice over the last two years.

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. Brinker International delivered year-on-year revenue growth of 12.5%, beating analysts’ expectations by 3.4%, and The Cheesecake Factory reported revenues up 4.2%, in line with consensus estimates. Brinker International’s stock price was unchanged after the results, and The Cheesecake Factory’s price followed a similar reaction.

Read our full analysis of Brinker International’s results here and The Cheesecake Factory’s results here.

There has been positive sentiment among investors in the sit-down dining segment, with share prices up 4.7% on average over the last month. Red Robin is up 22.8% during the same time and is heading into earnings with an average analyst price target of $10.88 (compared to the current share price of $5.88).

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