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Consumer Sector Update for 08/11/2015: RRGB,ARCO,YUME

Top Consumer Stocks

WMT +0.39%

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DIS -1.42%

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KO -0.53%

Consumer stocks were retreating Tuesday afternoon, with shares of consumer staples companies in the S&P 500 slipping 0.5% while shares of consumer discretionary firms in the S&P 500 were sliding almost 1.1%.

In company news, Red Robin Gourmet Burgers ( RRGB ) slumped Tuesday after the restaurant chain reported mixed Q2 results, missing Wall Street expectations with its quarterly revenue.

Total revenue rose 14.4% over year-ago levels during the 12 weeks ended July 12 to $293 million, trailing analyst forecasts looking for $299.19 million.

Excluding one-time items, its adjusted net income rose 13.6% over the same quarter last year to $11.2 million, or $0.78 per share basis, topping the Capital IQ consensus by $0.01 per share.

Over the rest of the year ending next January, Red Robin is expecting 3% sales growth at restaurant locations open more than one year compared with year-ago sales and total revenue growth this year of around 12%. Analysts, on average, also are expecting a 12% rise in FY15 revenue to around $1.28 billion.

RRGB shares recent were down over 11% at $78.59 apiece, rebounding from an earlier drop to $78.00 a share. Through Monday's close, the stock had risen nearly 37% over the past 12 months.

In other sector news,

(+) ARCO, (+6.2%) Q2 sales decline 17.3% from year-ago levels to $729 mln, lagging Street view by $290,000. Posts surprise $0.03 per share profit, reversing $0.47 loss last year and topping estimates looking for $0.05 per share loss.

(-) YUME, (-27.2%) Reports $0.17 per share Q2 net loss on $40.4 mln in revenue. Analysts, on average, were looking for $0.14 per share net loss on $44.05 mln in revenue. Q3 sales guidance lags consensus view by at least $7.43 mln.

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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