Red Robin Gourmet Burgers
The 10-second takeaway
For the quarter ended April 15 (Q1), Red Robin Gourmet Burgers missed estimates on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue increased and GAAP earnings per share improved significantly.
Margins grew across the board.
Red Robin Gourmet Burgers booked revenue of $299.5 million. The eight analysts polled by S&P Capital IQ hoped for net sales of $307.9 million on the same basis. GAAP reported sales were 4.4% higher than the prior-year quarter's $286.8 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 $0.71. The nine earnings estimates compiled by S&P Capital IQ predicted $0.66 per share. GAAP EPS of $0.71 for Q1 were 27% higher than the prior-year quarter's $0.56 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 22.5%, 120 basis points better than the prior-year quarter. Operating margin was 5.3%, 110 basis points better than the prior-year quarter. Net margin was 3.5%, 50 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $227.7 million. On the bottom line, the average EPS estimate is $0.52.
Next year's average estimate for revenue is $985.6 million. The average EPS estimate is $1.87.
The stock has a three-star rating (out of five) at Motley Fool CAPS, with 250 members rating the stock outperform and 62 members rating it underperform. Among 107 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 90 give Red Robin Gourmet Burgers a green thumbs-up, and 17 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 $42.22.
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Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor of Motley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. The Motley Fool owns shares of Red Robin Gourmet Burgers. Motley Fool newsletter services have recommended writing covered calls on 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.