Categories AlphaGraphs, Earnings, Retail

Red Robin Gourmet Burgers stock dips on weak Q3 revenue

Red Robin Gourmet Burgers (RRGB) stock inched down over 10% in the after-market session following lower-than-expected revenue for the third quarter. The top line remained hurt by dine-in traffic, lower average guest check and a decline in guest counts. However, the bottom line came in ahead of analysts’ expectations.

Net income dropped 37% to $1.71 million and earnings plunged 38% to $0.13 per share. Adjusted earnings fell 23.8% to $0.16 per share.

Total revenue declined 3.5% to $294.9 million due to a decrease in dine-in traffic. The top line was hurt by a decline in comparable restaurant revenue, a decline from closed restaurants and an unfavorable foreign currency exchange impact. Comparable restaurant revenue decreased 3.4%, due to a 1.5% decline in average guest check and a 1.9% decline in guest counts.

Red Robin Gourmet Burgers Q3 2018 Earnings Infographics

Looking ahead into the full year 2018, the company expects earnings in the range of $1.60 to $1.80 per share.

For the third quarter, restaurant-level operating profit margin fell to 16.8% from 18.6% in the previous year quarter. This was due to rises in real estate and personal property tax, sales deleverage and increase in restaurant technology, equipment repairs and maintenance, third-party delivery fees, and utility costs.

During the third quarter of 2018, the company opened two Red Robin restaurants and its franchisees opened one Red Robin restaurant.

As of October 7, 2018, the company had cash and cash equivalents of $20.4 million and total debt of $220.9 million, excluding $10.4 million of capital lease liabilities.

Shares of Red Robin Gourmet ended Tuesday’s regular session up 1.94% at $33.14 on the Nasdaq. The stock has fallen over 50% in the past year and over 41% in the year so far.

 

Listen to publicly listed companies’ earnings conference calls along with the edited closed caption text.

Most Popular

Key highlights from Box (BOX) Q4 2021 earnings results

Box Inc. (NYSE: BOX) reported fourth quarter 2021 earnings results today. Revenues rose 8% year-over-year to $198.9 million. GAAP net loss was $4.9 million, or $0.03 per share, compared to

Infographic: Highlights of Hewlett Packard’s (HPE) Q1 2021 earnings report

Technology firm Hewlett Packard Enterprise Company (NYSE: HPE) reported higher earnings for the first quarter of 2021, despite a decrease in revenues. The numbers surpassed the consensus forecast. First-quarter earnings,

MercadoLibre (MELI): Here is a stock to have on your investment radar

MercadoLibre Inc. (NASDAQ: MELI) is one of the stocks that benefited from the COVID-19 pandemic. The Argentine ecommerce company has caught the attention of market experts as it garnered growth

Tags

Add Comment
Loading...
Cancel
Viewing Highlight
Loading...
Highlight
Close
Top