We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Red Robin (RRGB) Stock Up on Q3 Earnings & Revenues Beat
Read MoreHide Full Article
Red Robin Gourmet Burgers, Inc. (RRGB - Free Report) reported its third-quarter fiscal 2022 results, with both earnings and revenues beating the Zacks Consensus Estimate. Following the results, the company’s shares gained 5.7% in the after-hours trading session on Nov 2.
Earnings & Revenue Discussion
In the fiscal third quarter, Red Robin reported an adjusted loss per share of $1.03, narrower than the Zacks Consensus Estimate of a loss of $1.30. In the year-ago quarter, the company reported an adjusted loss of 88 cents.
Quarterly revenues of $286.9 million surpassed the consensus mark of $282 million. The top line increased 4.2% year over year. The upside was primarily driven by favorable guest check and increased menu mix and pricing.
During the quarter under review, comparable restaurant revenues rose 5.3% year over year. The upside was primarily driven by a 9% rise in guest check and a 3.7% decrease in average guest count. The rise in average guest check can be attributed to a 7.7% increase in pricing, a 2.5% improvement in menu mix and a 1.2% decline in discounts.
Red Robin Gourmet Burgers, Inc. Price, Consensus and EPS Surprise
The restaurant-level operating profit margin was 12.6% in the fiscal third quarter compared with the 12.5% reported in the prior-year quarter.
During the fiscal third quarter, restaurant labor costs (as a percentage of restaurant revenues) decreased 130 basis points (bps) year over year to 35.6%. The upside was primarily due to labor inflation.
Meanwhile, other operating costs declined 30 bps year over year to 18.7%. During the quarter under review, cost of sales increased 180 bps year over year to 25%. Occupancy costs fell 20 bps year over year to 8.1%.
Adjusted earnings before interest expenses, income taxes, depreciation and amortization during the fiscal third quarter amounted to $4 million compared with $8.2 million in the year-ago quarter.
Other Financial Information
As of Oct 2, 2022, Red Robin had cash and cash equivalents of $50 million compared with $22.8 million as of Dec 26, 2021. Long-term debt as of Oct 2, 2022, stood at $189.3 million compared with $167.3 million as of Dec 26, 2021. Inventories during the quarter were $25.2 million, flat year over year.
Guidance
Red Robin updated 2022 guidance. For fiscal 2022, the company now expects capital expenditures in the range of $43-$48 million. This includes investments in restaurants, infrastructure and systems capital maintenance, digital guest, operational technology solutions and off-premises execution enhancements.
For fiscal 2022, the company continues to expect selling, general and administrative costs in the range of $138-$142 million compared with the prior estimate of $145-$155 million. Adjusted EBITDA is anticipated between $53 million and $58 million, down from the earlier estimate of $80 million and $90 million. In 2022, the company anticipates pricing in the mid-single digit, cost inflation in the mid-double digits and restaurant labor cost inflation in the mid-to-high single digit.
Potbelly currently sports a Zacks Rank #1 (Strong Buy). PBPB has a trailing four-quarter earnings surprise of 22.2%, on average. Shares of PBPB have declined 20.6% in the past year. You can see the complete list of today's Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for Potbelly’s 2022 sales and EPS suggests growth of 17.9% and 101.9%, respectively, from the corresponding year-ago period’s levels.
Wingstop also sports a Zacks Rank #1. WING has a long-term earnings growth rate of 11%. Shares of WING have improved 2.3% in the past year.
The Zacks Consensus Estimate for Wingstop’s 2023 sales and EPS suggests growth of 18.1% and 17.1%, respectively, from the comparable year-ago period’s levels.
Chipotle currently carries a Zacks Rank #2 (Buy). CMG has a trailing four-quarter earnings surprise of 4.1%, on average. The stock has declined 16.4% in the past year.
The Zacks Consensus Estimate for Chipotle’s 2022 sales and EPS suggests growth of 15.2% and 30.7%, respectively, from the corresponding year-ago period’s levels.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
Red Robin (RRGB) Stock Up on Q3 Earnings & Revenues Beat
Red Robin Gourmet Burgers, Inc. (RRGB - Free Report) reported its third-quarter fiscal 2022 results, with both earnings and revenues beating the Zacks Consensus Estimate. Following the results, the company’s shares gained 5.7% in the after-hours trading session on Nov 2.
Earnings & Revenue Discussion
In the fiscal third quarter, Red Robin reported an adjusted loss per share of $1.03, narrower than the Zacks Consensus Estimate of a loss of $1.30. In the year-ago quarter, the company reported an adjusted loss of 88 cents.
Quarterly revenues of $286.9 million surpassed the consensus mark of $282 million. The top line increased 4.2% year over year. The upside was primarily driven by favorable guest check and increased menu mix and pricing.
During the quarter under review, comparable restaurant revenues rose 5.3% year over year. The upside was primarily driven by a 9% rise in guest check and a 3.7% decrease in average guest count. The rise in average guest check can be attributed to a 7.7% increase in pricing, a 2.5% improvement in menu mix and a 1.2% decline in discounts.
Red Robin Gourmet Burgers, Inc. Price, Consensus and EPS Surprise
Red Robin Gourmet Burgers, Inc. price-consensus-eps-surprise-chart | Red Robin Gourmet Burgers, Inc. Quote
Operating Results
The restaurant-level operating profit margin was 12.6% in the fiscal third quarter compared with the 12.5% reported in the prior-year quarter.
During the fiscal third quarter, restaurant labor costs (as a percentage of restaurant revenues) decreased 130 basis points (bps) year over year to 35.6%. The upside was primarily due to labor inflation.
Meanwhile, other operating costs declined 30 bps year over year to 18.7%. During the quarter under review, cost of sales increased 180 bps year over year to 25%. Occupancy costs fell 20 bps year over year to 8.1%.
Adjusted earnings before interest expenses, income taxes, depreciation and amortization during the fiscal third quarter amounted to $4 million compared with $8.2 million in the year-ago quarter.
Other Financial Information
As of Oct 2, 2022, Red Robin had cash and cash equivalents of $50 million compared with $22.8 million as of Dec 26, 2021. Long-term debt as of Oct 2, 2022, stood at $189.3 million compared with $167.3 million as of Dec 26, 2021. Inventories during the quarter were $25.2 million, flat year over year.
Guidance
Red Robin updated 2022 guidance. For fiscal 2022, the company now expects capital expenditures in the range of $43-$48 million. This includes investments in restaurants, infrastructure and systems capital maintenance, digital guest, operational technology solutions and off-premises execution enhancements.
For fiscal 2022, the company continues to expect selling, general and administrative costs in the range of $138-$142 million compared with the prior estimate of $145-$155 million. Adjusted EBITDA is anticipated between $53 million and $58 million, down from the earlier estimate of $80 million and $90 million. In 2022, the company anticipates pricing in the mid-single digit, cost inflation in the mid-double digits and restaurant labor cost inflation in the mid-to-high single digit.
Zacks Rank & Key Picks
Red Robin currently has a Zacks Rank #3 (Hold).
Some better-ranked stocks in the Zacks Retail – Restaurants industry are Potbelly Corporation (PBPB - Free Report) , Wingstop Inc. (WING - Free Report) and Chipotle Mexican Grill, Inc. (CMG - Free Report) .
Potbelly currently sports a Zacks Rank #1 (Strong Buy). PBPB has a trailing four-quarter earnings surprise of 22.2%, on average. Shares of PBPB have declined 20.6% in the past year. You can see the complete list of today's Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for Potbelly’s 2022 sales and EPS suggests growth of 17.9% and 101.9%, respectively, from the corresponding year-ago period’s levels.
Wingstop also sports a Zacks Rank #1. WING has a long-term earnings growth rate of 11%. Shares of WING have improved 2.3% in the past year.
The Zacks Consensus Estimate for Wingstop’s 2023 sales and EPS suggests growth of 18.1% and 17.1%, respectively, from the comparable year-ago period’s levels.
Chipotle currently carries a Zacks Rank #2 (Buy). CMG has a trailing four-quarter earnings surprise of 4.1%, on average. The stock has declined 16.4% in the past year.
The Zacks Consensus Estimate for Chipotle’s 2022 sales and EPS suggests growth of 15.2% and 30.7%, respectively, from the corresponding year-ago period’s levels.