Red Robin (RRGB) Q1 Earnings Report Preview: What To Look For

Anthony Lee /
2024/05/28 3:01 am EDT

Burger restaurant chain Red Robin (NASDAQ:RRGB) will be announcing earnings results tomorrow after the bell. Here's what to expect.

Red Robin beat analysts' revenue expectations by 1.3% last quarter, reporting revenues of $309 million, up 6.7% year on year. It was a mixed quarter for the company, with a beat of analysts' revenue estimates but 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 6% year on year to $392.7 million, a reversal from the 5.7% increase it recorded in the same quarter last year. Adjusted loss is expected to come in at -$0.62 per share.

Red Robin Total Revenue

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 Q1 results, giving us a hint as to what we can expect. BJ's revenues decreased 1.2% year on year, meeting analysts' expectations, and The Cheesecake Factory reported revenues up 2.9%, in line with consensus estimates. BJ's traded up 5.9% following the results while The Cheesecake Factory was also up 6.2%.

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

Growth stocks have seen elevated volatility as investors debate the Fed's monetary policy, and while some of the sit-down dining stocks have fared somewhat better, they have not been spared, with share prices down 4.1% on average over the last month. Red Robin is down 11.7% during the same time and is heading into earnings with an average analyst price target of $15.3 (compared to the current share price of $6.71).

When a company has more cash than it knows what to do with, buying back its own shares can make a lot of sense–as long as the price is right. Luckily, we’ve found one, a low-priced stock that is gushing free cash flow AND buying back shares. Click here to claim your Special Free Report on a fallen angel growth story that is already recovering from a setback.