Published on 30 May 2024 on Zacks via Yahoo Finance

Red Robin (RRGB) Q1 Earnings and Revenues Lag Estimates

Red Robin Gourmet Burgers, Inc. RRGB reported first-quarter fiscal 2024 results, with earnings and revenues missing the Zacks Consensus Estimate. Earnings missed the consensus estimate for the second straight quarter.Last week's launch of a new Red Robin loyalty program marked a successful step in the company’s strategy to revitalize the brand within the casual dining industry. The company is encouraged by the early progress and is confident that it has just begun tapping into its full potential.

Delving Deeper

In the fiscal first quarter, Red Robin recorded an adjusted loss per share of 80 cents, wider than the Zacks Consensus Estimate of a loss of 41 cents. The company had reported an adjusted loss per share of 25 cents in the prior-year quarter.Quarterly revenues of $388.5 million missed the consensus mark of $397 million. The top line decreased 7% year over year. The decrease in revenues was primarily due to dismal restaurant revenues.In the quarter under review, comparable restaurant revenues fell 6.5% year over year. This was caused by the shift away from deep discounting marketing promotions. Also, guest traffic declined 9.4% in the quarter. However, this was partially offset by a 2.9% rise in guest checks. The rise in guest checks was due to a 5.4% increase in menu prices. This was partially offset by a 1.8% decline in the menu mix. Per our model, comparable restaurant revenues were anticipated to decline 4.7% year over year.