Yahoo Finance Red Robin (RRGB) to Post Q4 Earnings: Here's What to Expect
Red Robin Gourmet Burgers, Inc. RRGB is scheduled to report fourth-quarter 2022 results on Feb 28, after the closing bell.
In the last reported quarter, the company delivered an earnings surprise of 20.8%.
The Trend in Estimate Revision
The Zacks Consensus Estimate for the fourth-quarter bottom line is pegged at a loss of 66 cents per share, indicating an improvement of 35.9% from a loss of $1.03 per share reported in the year-ago quarter.
Red Robin Gourmet Burgers, Inc. Price and EPS Surprise
Red Robin Gourmet Burgers, Inc. price-eps-surprise | Red Robin Gourmet Burgers, Inc. Quote
For revenues, the consensus mark is pegged at $293 million, suggesting an increase of 3.4% from the year-ago quarter’s reported figure.
Factors at Play
Red Robin’s fiscal fourth-quarter performance is likely to have benefited from menu innovation and pricing. Also, the barbell strategy is expected to have driven growth. These are likely to have led to an increase in guest checks, thus driving comparable restaurant sales and top-line growth.
For the to-be-reported quarter, the consensus estimate for comparable restaurant sales growth is pegged at 6%.
Robust restaurant revenues are likely to have favored the company’s fourth-quarter performance. The Zacks Consensus Estimate for restaurant revenues is pegged at $293 million, suggesting growth of 5.8% year over year. The same for Franchise and other revenues is currently pegged at $6.73 million, up from $6.69 million a year ago.
Higher costs and expenses are likely to have weighed on the company’s bottom line. Red Robin has been witnessing rising costs due to labor inflation and increased input costs. Also, the company’s investment in elevating the restaurant management structure, dine-in atmosphere and digitalized operation is expected to have added to the cost structure in the fourth quarter. Remodeling, restaurant maintenance and staffing costs are added negatives. These are likely to have put pressure on its adjusted EBITDA in the quarter-to-be-reported.
What the Zacks Model Unveils
Our proven model doesn’t conclusively predict an earnings beat for Red Robin this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat.
Earnings ESP: Red Robin has an Earnings ESP of 0.00%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Zacks Rank: The company has a Zacks Rank #4 (Sell). You can see the complete list of today’s Zacks #1 Rank stocks here.
Stocks Poised to Beat Earnings Estimates
Here are some stocks from the Zacks Retail-Wholesale sector that investors may consider as our model shows that these too have the right combination of elements to post an earnings beat in the quarter to be reported:
First Watch Restaurant Group, Inc. FWRG currently has an Earnings ESP of +25.00% and a Zacks Rank #3.
FWRG’s earnings beat the consensus mark in three of the last four quarters and missed on the other occasion. It has a trailing four-quarter earnings surprise of 9%, on average. Earnings for the to-be-reported quarter are expected to grow 125% year over year.
Dine Brands Global, Inc. DIN currently has an Earnings ESP of +4.28% and a Zacks Rank #2.
DIN’s earnings beat the consensus mark in each of the last four quarters. It has a trailing four-quarter earnings surprise of 10.6%, on average. Earnings for the to-be-reported quarter are expected to decline 8.3% year over year.
Recent Retail-Wholesale Release
BJ's Restaurants, Inc. BJRI reported impressive fourth-quarter fiscal 2022 (ended Jan 3, 2023) results, with earnings and revenues beating the Zacks Consensus Estimate. The top and the bottom line increased on a year-over-year basis.
Comparable restaurant sales in the fiscal fourth quarter increased 6.6% year over year compared with a rise of 45.6% reported in the prior-year quarter. Also, the restaurant-level operating margin came in at 12.9% compared with 10.1% reported in the year-ago quarter.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.
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BJ's Restaurants, Inc. (BJRI) : Free Stock Analysis Report
DINE BRANDS GLOBAL, INC. (DIN) : Free Stock Analysis Report
Red Robin Gourmet Burgers, Inc. (RRGB) : Free Stock Analysis Report
First Watch Restaurant Group, Inc. (FWRG) : Free Stock Analysis Report
