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Restaurant Stocks' Q2 Earnings on Aug 9: RRGB, FOGO, TAST
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The Q2 earnings season is drawing to a close as we now have releases from 433 of the S&P 500 members (as of Aug 5) per our latest Earnings Preview report.
Turning our focus to restaurant stocks, we note that the industry belongs to the broader Retail-Wholesale sector and has not fared well this earnings season relative to the recent past. So far, 50% of the Retail companies in the S&P 500 index have reported their results and the beat ratios for this sector have not been impressive (45.5% for earnings and 18.2% for revenues).
Thus, in spite of the high expectations for the group, most of the stocks reported below-par figures as they mainly struggled with the top line.
Limited revenue growth has hurt the performance of major players in the space like McDonald's Corp. (MCD - Free Report) , Chipotle Mexican Grill, Inc. (CMG - Free Report) , Starbucks Corporation (SBUX - Free Report) , Dunkin' Brands Group, Inc. and others.
A few restaurant companies are set to report their Q2 numbers on Aug 9. Let’s take a look at what might be in store for them this quarter:
Red Robin Gourmet Burgers Inc. (RRGB - Free Report) posted a positive earnings surprise of 15.45% last quarter. In fact, the company’s earnings surpassed the Zacks Consensus Estimate in all of the last four quarters, with an average beat of 8.42%.
For Q2, the company has an Earnings ESP of -5.06% and a Zacks Rank #3 (Hold). The Zacks Consensus Estimate for the quarter’s earnings is pegged at 79 cents.
Improved traffic trends are expected to drive Red Robin’s comps growth in Q2. However, we expect the company’s rising costs to put pressure on margins (Read More: Will Red Robin Earnings Let Down Investors in Q2?).
Fogo de Chao, Inc. recorded a negative earnings surprise of 8.70% last quarter. However, the company’s earnings outpaced/met the Zacks Consensus Estimate in three of the last four quarters, with an average beat of 17.27%.
The company has an Earnings ESP of 0.00% and a Zacks Rank #4 (Sell). The Zacks Consensus Estimate for the second quarter’s earnings is pegged at 25 cents.
Menu innovation, marketing through various channels and re-imaging of restaurants should drive the top line. However, foreign currency fluctuations coupled with higher costs may continue to dent revenues and profits (Read More: Fogo de Chao Q2 Earnings: Is a Surprise in Store?).
Carrols Restaurant Group, Inc. (TAST - Free Report) registered a 162.50% positive earnings surprise in the previous quarter. Moreover, the trailing four-quarter average earnings surprise stands at a positive 294.17%.
The company has an Earnings ESP of +4.35% and a Zacks Rank #3 for the second quarter. The Zacks Consensus Estimate for the quarter’s bottom line is pegged at 23 cents.
Don’t miss out on our full earnings release articles for these stocks, as the actual results might hold some surprises!
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Restaurant Stocks' Q2 Earnings on Aug 9: RRGB, FOGO, TAST
The Q2 earnings season is drawing to a close as we now have releases from 433 of the S&P 500 members (as of Aug 5) per our latest Earnings Preview report.
Turning our focus to restaurant stocks, we note that the industry belongs to the broader Retail-Wholesale sector and has not fared well this earnings season relative to the recent past. So far, 50% of the Retail companies in the S&P 500 index have reported their results and the beat ratios for this sector have not been impressive (45.5% for earnings and 18.2% for revenues).
Thus, in spite of the high expectations for the group, most of the stocks reported below-par figures as they mainly struggled with the top line.
Limited revenue growth has hurt the performance of major players in the space like McDonald's Corp. (MCD - Free Report) , Chipotle Mexican Grill, Inc. (CMG - Free Report) , Starbucks Corporation (SBUX - Free Report) , Dunkin' Brands Group, Inc. and others.
A few restaurant companies are set to report their Q2 numbers on Aug 9. Let’s take a look at what might be in store for them this quarter:
Red Robin Gourmet Burgers Inc. (RRGB - Free Report) posted a positive earnings surprise of 15.45% last quarter. In fact, the company’s earnings surpassed the Zacks Consensus Estimate in all of the last four quarters, with an average beat of 8.42%.
RED ROBIN GOURM Price and EPS Surprise
RED ROBIN GOURM Price and EPS Surprise | RED ROBIN GOURM Quote
For Q2, the company has an Earnings ESP of -5.06% and a Zacks Rank #3 (Hold). The Zacks Consensus Estimate for the quarter’s earnings is pegged at 79 cents.
Improved traffic trends are expected to drive Red Robin’s comps growth in Q2. However, we expect the company’s rising costs to put pressure on margins (Read More: Will Red Robin Earnings Let Down Investors in Q2?).
Fogo de Chao, Inc. recorded a negative earnings surprise of 8.70% last quarter. However, the company’s earnings outpaced/met the Zacks Consensus Estimate in three of the last four quarters, with an average beat of 17.27%.
FOGO DE CHAO Price and EPS Surprise
FOGO DE CHAO Price and EPS Surprise | FOGO DE CHAO Quote
The company has an Earnings ESP of 0.00% and a Zacks Rank #4 (Sell). The Zacks Consensus Estimate for the second quarter’s earnings is pegged at 25 cents.
Menu innovation, marketing through various channels and re-imaging of restaurants should drive the top line. However, foreign currency fluctuations coupled with higher costs may continue to dent revenues and profits (Read More: Fogo de Chao Q2 Earnings: Is a Surprise in Store?).
Carrols Restaurant Group, Inc. (TAST - Free Report) registered a 162.50% positive earnings surprise in the previous quarter. Moreover, the trailing four-quarter average earnings surprise stands at a positive 294.17%.
CARROLS RESTRNT Price and EPS Surprise
CARROLS RESTRNT Price and EPS Surprise | CARROLS RESTRNT Quote
The company has an Earnings ESP of +4.35% and a Zacks Rank #3 for the second quarter. The Zacks Consensus Estimate for the quarter’s bottom line is pegged at 23 cents.
Don’t miss out on our full earnings release articles for these stocks, as the actual results might hold some surprises!
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report >>