Red Robin Gourmet Burgers Inc.RRGB operates, and franchises casual-dining and fast-casual restaurants in the United States and Canada.
In the past few quarters, Red Robin has been consistently delivering comps growth and outperforming its competitive set in the industry, according to Black Box. Traffic trends have been continuously strong driven by the brand transformation initiatives, prudent menu presentation and the rollout of Ziosk tabletop tablets.
Red Robin's loyalty program - Red Robin Royalty - which continues to add new members and has been a good revenue driver. Additionally, the company's new service methods, presentation and innovative menu items have continued to add to traffic growth.
Analysts have been cautiously optimistic in the recent months about the company's earnings and kept their estimates almost stable over the last 30 days. Meanwhile, the company has a decent history in the earnings season. Red Robin has delivered positive earnings surprise in three of the four quarters and has an average positive surprise of 18.70%. However, the company has posted negative revenue surprises in three of the trailing four quarters.
Currently, RRGB has a Zacks Rank #2 (Buy), but that could change following Red Robin's earnings report which was just released. We have highlighted some of the key stats from this just-revealed announcement below:
Earnings: RRGB beat on earnings. Our consensus earnings estimate called for earnings of 53 cents per share, and the company reported EPS of 58 cents. Investors should note that these figures take out stock option expenses.
Revenues: RRGB reported revenues of $283.4 million. This missed our consensus estimate of $286 million.
Key Stats to Note: Comparable restaurant revenue increased 3.5% in the third quarter. Meanwhile, the company revised its comparable revenue growth guidance as well as total revenue guidance for fiscal 2015. It expects comparable revenue growth of approximately 2.5% compared to previous expectation of 3% and total revenue growth of approximately 11% compared to prior expectation of 12%.
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