Red Robin Gourmet Burgers Earnings Preview

Before you go, we thought you'd like these...
Before you go close icon

Red Robin Gourmet Burgers (NAS: RRGB) will try to beat its earnings estimates for the fourth consecutive quarter. 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 a wide selection of high-quality 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 $205.1 million in revenue this quarter. That would represent a rise of 6.5% from the year-ago quarter.
  • Wall Street earnings expectations: The average analyst estimate is earnings of $0.20 per share. Estimates range from $0.16 to $0.25.

What our community says:
CAPS All-Stars are solidly backing the stock, with 84.7% awarding it an outperform rating. Most of the community is in line with the All-Stars, with 80.4% granting it a rating of outperform. Fools are impressed with Red Robin Gourmet Burgers and haven't been shy with their opinions lately, logging 212 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, a look at how efficient management has been at running the business. Traditionally, margins represent the efficiency with which companies capture portions of sales dollars. Red Robin Gourmet Burgers has seen increasing net margins year-over-year for the last four quarters. Net margins reflect what percentage of each dollar earned by the company becomes profit. Here is how Red Robin Gourmet Burgers has been doing for the last four quarters:

Quarter

Q3

Q2

Q1

Q4

Gross Margin

20.2%

22.1%

21.3%

18.4%

Operating Margin

1.6%

4.2%

3.9%

1.0%

Net Margin

1.0%

3.2%

3.0%

1.2%

For all our Red Robin Gourmet Burgers-specific analysis, including earnings and beyond, add Red Robin Gourmet Burgers to My Watchlist.

The Motley Fool owns shares of Red Robin Gourmet Burgers. Motley Fool newsletter services have recommended writing covered calls in 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.

Earnings estimates provided by Zacks.

At the time this article was published

Copyright © 1995 - 2012 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.

Read Full Story

Want more news like this?

Sign up for Finance Report by AOL and get everything from business news to personal finance tips delivered directly to your inbox daily!

Subscribe to our other newsletters

Emails may offer personalized content or ads. Learn more. You may unsubscribe any time.

From Our Partners