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Red Robin Shares Soar on Upbeat Guidance

EditorLina Guerrero
Published 05/29/2024, 04:24 PM
© Reuters.

ENGLEWOOD, Colo. - Red Robin Gourmet (NASDAQ:RRGB) Burgers, Inc. (NASDAQ: RRGB) reported a challenging first quarter with a net loss and a decline in comparable restaurant revenue. However, shares surged 15% as the company's guidance for fiscal year 2024 came in ahead of analyst expectations.

For the first quarter ended April 21, 2024, the company posted a net loss of $9.5 million, a deeper loss compared to $3.3 million in the same quarter last year. Revenue decreased to $388.5 million from $417.8 million year-over-year (YoY), falling short of the consensus estimate of $392.73 million. Comparable restaurant revenue saw a 6.5% decline.

Despite the first quarter's downturn, Red Robin's outlook for fiscal 2024 is optimistic. The company forecasts revenues between $1.25 billion and $1.275 billion, which surpasses the analyst consensus of $1.253 billion. Adjusted EBITDA is expected to be between $60 million and $70 million, with restaurant-level operating profit ranging from 12.5% to 13.5%.

G.J. Hart, President and CEO of Red Robin, expressed confidence in the company's trajectory, highlighting the positive comparable restaurant revenue in the initial weeks of the second quarter and the launch of a new loyalty program. "We are excited by the progress we've seen so far, and I am confident we are only scratching the surface of our potential," Hart said.

The company's strategic initiatives, including a focus on guest experience and food quality, are expected to drive long-term shareholder value. Red Robin also completed a sale-leaseback transaction for ten restaurants, generating approximately $23.4 million and repaid $21.2 million of debt in the first quarter.


This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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