Red Robin Gourmet Burgers
The 10-second takeaway
For the quarter ended Dec. 30 (Q4), Red Robin Gourmet Burgers beat expectations on revenues and crushed expectations on earnings per share.
Compared to the prior-year quarter, revenue increased significantly. Non-GAAP earnings per share expanded significantly. GAAP earnings per share expanded significantly.
Margins grew across the board.
Red Robin Gourmet Burgers booked revenue of $240.7 million. The 14 analysts polled by S&P Capital IQ hoped for a top line of $232.9 million on the same basis. GAAP reported sales were 17% higher than the prior-year quarter's $206.0 million.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
EPS came in at $0.59. The 15 earnings estimates compiled by S&P Capital IQ predicted $0.46 per share. Non-GAAP EPS of $0.59 for Q4 were 111% higher than the prior-year quarter's $0.28 per share. GAAP EPS of $0.45 for Q4 were 137% higher than the prior-year quarter's $0.19 per share.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 34.7%, 1,350 basis points better than the prior-year quarter. Operating margin was 5.1%, 240 basis points better than the prior-year quarter. Net margin was 2.7%, 130 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $312.4 million. On the bottom line, the average EPS estimate is $0.71.
Next year's average estimate for revenue is $1.01 billion. The average EPS estimate is $2.02.
The stock has a three-star rating (out of five) at Motley Fool CAPS, with 246 members out of 309 rating the stock outperform, and 63 members rating it underperform. Among 109 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 93 give Red Robin Gourmet Burgers a green thumbs-up, and 16 give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Red Robin Gourmet Burgers is outperform, with an average price target of $37.75.
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