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Red Robin (RRGB) to Report Q2 Earnings: What's in the Offing?

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Red Robin Gourmet Burgers, Inc. (RRGB - Free Report) is scheduled to report second-quarter fiscal 2021 results on Aug 18, after the closing bell. In the last reported quarter, the company delivered a positive earnings surprise of 75.8%.

Q2 Estimates

The Zacks Consensus Estimate for the company’s fiscal second-quarter bottom line is pegged at 7 cents per share. In the prior-year quarter, the company reported loss per share of $3.31. The consensus mark for revenues stands at $279.1 million, suggesting growth of 73.2% year over year.

Factors to Note

Red Robin's fiscal second-quarter performance is likely to have benefited from higher average guest check, pent-up demand for casual dining and robust off-premise sales. In first-quarter 2021, the company delivered strong off-premises sales, which comprises 41.7% of total food and beverage sales, up from 26.3% and 11.6% in 2020 and 2019, respectively. Nearly, 80% of off-premises sales were driven by digital channels. The uptrend is likely to have continued in the second quarter on account of its process and technology enhancements, and implementation of triple check accuracy program. Reductions in menu and refined operating processes resulted in the accuracy of timely pickup and delivery.

Robust restaurant revenues might have aided the company’s performance in the quarter to be reported. The Zacks Consensus Estimate for restaurant revenues is pegged at $275 million, idicating an improvement of 71.9% from the prior-year quarter.

Costs pertaining to digital and restaurant maintenance, Donatos expansion and off-premise execution enhancements are likely to have weighed on second-quarter 2021 margin.

What the Zacks Model Unveils

Our proven model doesn’t conclusively predict an earnings beat for Red Robin this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat.

Earnings ESP: Red Robin has an Earnings ESP 0.00%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Zacks Rank: The company has a Zacks Rank #3. You can see the complete list of today’s Zacks #1 Rank stocks here.

Peer Releases

BJ's Restaurants, Inc. (BJRI - Free Report) reported second-quarter fiscal 2021 results, wherein both earnings and revenues surpassed the Zacks Consensus Estimate and improved year over year. The company’s adjusted earnings per share (EPS) of 26 cents beat the Zacks Consensus Estimate of 16 cents. In the prior-year quarter, the company had reported adjusted loss of 99 cents per share. Quarterly revenues of $290.3 million outpaced the consensus mark of $285 million. The top line increased a whopping 126.7% year over year. The upside can be primarily attributed to the lifting of capacity and social-distancing restrictions, which boosted dining room capacity.

McDonald's Corporation (MCD - Free Report) reported second-quarter 2021 results, with earnings and revenues surpassing the Zacks Consensus Estimate. Both the metrics increased year over year. The company reported adjusted EPS of $2.37, which beat the Zacks Consensus Estimate of $2.12. The bottom line rose 259.1% year over year. Quarterly revenues of $5,887.9 million outpaced the Zacks Consensus Estimate of $5,629 million. The figure rose 56.5% year over year. The top line benefited from increase in global comparable sales.

Starbucks Corporation (SBUX - Free Report) reported solid third-quarter fiscal 2021 results, with earnings and revenues surpassing the Zacks Consensus Estimate. Both the metrics improved year over year. The company reported adjusted EPS of $1.01, which beat the Zacks Consensus Estimate of 77 cents. In the prior-year quarter, the company had reported adjusted loss per share of 46 cents. Quarterly revenues of $7,496.5 million missed the Zacks Consensus Estimate of $7,243 million. The top line increased 77.6% from the year-ago quarter’s levels. The uptick was driven by growth in comparable store sales.