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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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 recommends 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.