Red Robin Gourmet Burgers, Inc. RRGB posted mixed second-quarter fiscal 2024 results, with earnings
missing the Zacks Consensus Estimate and revenues beating the same. The top line increased year over year,
while the bottom line fell from the prior-year quarter’s levels.
Following the results, the company’s shares declined 14% during the after-hours trading session on Aug 22.
Negative investor sentiments were witnessed as the company lowered its 2024 guidance on account of a broader
industry slowdown.
A Detailed Look at the Results
In the fiscal second quarter, RRGB recorded an adjusted loss per share of 48 cents, wider than the Zacks
Consensus Estimate of a loss of 41 cents. The company reported an adjusted loss per share of 24 cents in the
prior-year quarter.
Red Robin Gourmet Burgers, Inc. Price, Consensus and EPS Surprise
Red Robin Gourmet Burgers, Inc. price-consensus-eps-surprise-chart | Red Robin Gourmet Burgers, Inc.
Quote
Quarterly revenues of $300.2 million beat the consensus mark of $296 million. The top line inched up 0.5%
year over year. In the quarter under review, comparable restaurant revenues increased 1.4% year over year.
Operational Highlights
The restaurant-level operating profit margin was 11.8% in the fiscal second quarter (compared with 12.6% in
the prior-year quarter). The figure compares to our projection of 11.9%.
In the fiscal second quarter, restaurant labor costs increased 3.9% year over year to $113.9 million. The figure
compares to our projection of $112.2 million.
Other operating costs came in at $51.7 million compared with $51.8 million reported in the prior-year quarter.
The figure compares to our projection of $54.3 million.
Adjusted earnings before interest expenses, income taxes, depreciation and amortization (EBITDA) in the fiscal
second quarter amounted to $11.8 million compared with $15.5 million in the prior-year quarter. Our estimate
for the metric was $14.1 million.
Financial Insights
As of Jul 14, 2024, RRGB had cash and cash equivalents of $23.1 million compared with $23.6 million as of
Dec 31, 2023. Long-term debt, as of Jul 14, 2024, was $162.3 million compared with $182.6 million in the
prior-year quarter. Inventories in the quarter were $27.3 million compared with $27.1 million in the previous
quarter.
Guidance for 2024
For the fiscal 2024, the company expects total revenues to be approximately $1.25 billion compared with the
previous expectation of $1.25-$1.275 billion. Restaurant-level operating profit is anticipated in the range of
11-11.5% down from the previous expectation of 12.5-13.5%. Capital expenditures are anticipated to be between
$25 million and $30 million. In 2024, adjusted EBITDA is expected in the range of $40-$45 million, down from
the previous expectation of $60-$70 million.
Assessment and Outlook
Red Robin currently has a Zacks Rank #4 (Sell).
Comparative Analysis in the Industry
Starbucks Corporation reported mixed third-quarter fiscal 2024 results, with earnings meeting the Zacks
Consensus Estimate and revenues missing the same. Chipotle Mexican Grill, Inc. released impressive
second-quarter 2024 results with earnings and revenues exceeding estimates. Meanwhile, McDonald’s Corporation
reported downtrend second-quarter 2024 results.
