Investors never know what to expect for Red Robin Gourmet Burgers (Nasdaq: RRGB), as it has wavered between topping and missing analysts estimates during the past fiscal year. The company will unveil its latest earnings on Thursday. Red Robin Gourmet Burgers together with its subsidiaries is a casual dining restaurant chain focused on serving an imaginative selection of high-quality gourmet burgers in a family-friendly atmosphere.
What analysts say
- Buy, sell, or hold?: Analysts are bullish on this stock with six analysts rating it as a buy and only two rating it as a sell. Analysts like Red Robin Gourmet Burgers better than competitor O'Charley's overall. Analysts still rate the stock a hold, but they are a bit more wary about it compared to three months ago.
- Revenue Forecasts: On average, analysts predict $213 million in revenue this quarter. That would represent a rise of 5.8% from the year-ago quarter.
- Wall Street earnings expectations: The average analyst estimate is earnings of $0.36 per share. Estimates range from $0.28 to $0.41.
What our community says
CAPS All-Stars are solidly behind the stock with 87.5% assigning it an outperform rating. The community at large concurs with the All-Stars with 79.4% granting it a rating of outperform. Fools are bullish on Red Robin Gourmet Burgers and haven't been shy with their opinions lately, logging 210 posts in the past 30 days. Despite the majority sentiment in favor of Red Robin Gourmet Burgers, the stock has a middling CAPS rating of three out of five stars.
Management
Revenue has now gone up for three straight quarters.
Now let's look at how efficient management is at running the business. Traditionally, margins represent the efficiency with which companies capture portions of sales dollars. The following table shows gross, operating, and net margins over the past four quarters.
|
Quarter |
Q1 |
Q4 |
Q3 |
Q2 |
|
Gross Margin |
21.3% |
18.4% |
18.9% |
19.7% |
|
Operating Margin |
3.9% |
1.0% |
(3.1%) |
3.0% |
|
Net Margin |
3.0% |
1.2% |
(2.2%) |
2.2% |
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The Motley Fool owns shares of Red Robin Gourmet Burgers. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.
