Red Robin Shares Dive Almost 20% After Release of Q1 Financial Earnings

Red Robin

Shares of the Colorado-based restaurant company Red Robin Gourmet Burgers (NASDAQ:RRGB) dove almost 20% after the company released its first-quarter financial earnings results.

The company reported that revenue for the quarter only increased by 0.2% to $421.5 million, compared with $420.6 million during the first quarter of the previous year.

Net income for Red Robin reached a total of $4.4 million for the first quarter, a significant decrease from the $11.6 million that the company reported in the first quarter of 2017.

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GAAP earnings per diluted share were $0.34 and adjusted earnings per diluted share were $0.69. The company predicts that the second quarter earnings per diluted share should range between $0.55 to $0.75.

Comparable restaurant revenue decreased by 0.9%, which the company attributes to a 1% decrease in the average cheque of guests that was slightly offset by a 0.1% increase in the number of guests.

Red Robin opened a total of four restaurants and one other restaurant was opened through a franchise. This gives the company 484 company-owned restaurants and 571 franchised restaurant, as of the end of the first quarter.

Four more restaurants are planned to be opened by the company during the rest of fiscal 2018, while three franchised restaurants should open.

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CEO of Red Robin, Denny Marie Post has said that although the company reported disappointing sales in the first quarter for fiscal 2018, she believes that the company is “taking steps to improve sales and traffic trends while continuing to make strides on productivity, which is critical to ensure [they] can deliver great service and value despite rising costs.”

Red Robin shares had fallen to a value of approximately $47.15, as of 2:50 pm EDT on Wednesday. The company reached a high share value of $49.70 and a low of $46.05.

Comparatively, Red Robin closed at a share value of $57.95 on Tuesday.

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