Burger restaurant chain Red Robin (NASDAQ:RRGB) will be announcing earnings results tomorrow after market close. Here’s what to expect.
Red Robin missed analysts’ revenue expectations by 1.1% last quarter, reporting revenues of $388.5 million, down 7% year on year. It was a weak quarter for the company, with a miss of analysts’ earnings estimates.
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 2.1% year on year to $292.3 million, a reversal from the 1.6% increase it recorded in the same quarter last year. Adjusted loss is expected to come in at -$0.46 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 three times over the last two years.
Looking at Red Robin’s peers in the sit-down dining segment, some have already reported their Q2 results, giving us a hint as to what we can expect. First Watch delivered year-on-year revenue growth of 19.5%, meeting analysts’ expectations, and Texas Roadhouse reported revenues up 14.5%, in line with consensus estimates. First Watch traded up 11.1% following the results while Texas Roadhouse was also up 2%.
Read our full analysis of First Watch’s results here and Texas Roadhouse’s results here.
Investors in the sit-down dining segment have had steady hands going into earnings, with share prices up 1.4% on average over the last month. Red Robin is down 19.6% during the same time and is heading into earnings with an average analyst price target of $13.6 (compared to the current share price of $4.89).
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