Watch stocks you care about
The single, easiest way to keep track of all the stocks that matter...
Your own personalized stock watchlist!
It's a 100% FREE Motley Fool service...
Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.
What: Shares of Red Robin Gourmet Burgers (NASDAQ: RRGB ) were sizzling today, climbing as much as 24% after crushing estimates in its quarterly report.
So what: Net income at the burger chain more than doubled as adjusted earnings per share jumped to $0.59 a share, from $0.28 a year ago. Analysts had expected just $0.44 a share. Revenue grew at a healthy clip as well, climbing 17% to $240.7 million, better than the consensus at $232.9 million. Operating margin also improved by 70 basis points to 20.6%.
Now what: Despite the strong report, there was one area of concern. Same-store sales, a key figure in the restaurant industry, grew by just 1.4%, indicating that the vast majority of additional sales came from new stores. Red Robin projects comparable sales growth of 2.5% to 3% in 2013, in part from higher prices, and an increase in its company-owned store count of about 6%. This means revenue growth should slow down considerably in the coming year. Considering that, today's big jump seems a bit overdone.
Want seconds on Red Robin Burgers? Add the company to your Watchlist by clicking right here.
RSS Headlines
Fool UK
Comments from our Foolish Readers
Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the
Report this Comment icon found on every comment.
Be the first one to comment on this article.