Market Overview

Red Robin Gourmet Burgers Downgraded After Q1 Print Falls Short Of BTIG's Expectations

Share:
Red Robin Gourmet Burgers Downgraded After Q1 Print Falls Short Of BTIG's Expectations

Red Robin Gourmet Burgers, Inc. (NASDAQ: RRGB) reported first-quarter results Tuesday that prompted BTIG to drop its bullish stance on the stock. 

The Analyst

BTIG's Peter Saleh downgraded Red Robin Gourmet Burgers from Buy to Neutral with no assigned price target.

The Thesis

Red Robin earned 69 cents per share in the first quarter, in-line with its guidance range but short of the 76 cents per share Saleh was expecting, the analyst said in the downgrade note. The earnings miss was driven by a 0.9-percent decline in same-store sales, which also fell short of the 0.5-percent gain Saleh expected. On a two-year basis, same-store sales declined 50 basis points sequentially from negative 1.6 percent to negative 2.1 percent.

On the positive front, traffic during Q1 matched the fourth quarter's "healthy pace" of relative outperformance, as it exceeded the Black Box benchmark by 230 basis points, the analyst said Red Robin's off-premise sales grew 40 percent and accounted for 9.4 percent of total sales in the quarter. 

Red Robin's earnings volatility presents a "subdued outlook" that makes it difficult to make the case for upside to current EPS expectations for the full year, according to BTIG. 

Price Action

Red Robin shares were plunging 16.39 percent to $48.45 at the time of publication Wednesday morning. 

Related Links:

Red Robin Burgers Is 'Ready To Fly,' Analyst Says In Upgrade

Stifel's Deep Dive Into The Restaurant Sector

Photo by Cbraccialini/Wikimedia. 

Latest Ratings for RRGB

DateFirmActionFromTo
Nov 2019MaintainsHold
Aug 2019DowngradesNeutralUnderperform
Aug 2019MaintainsEqual-Weight

View More Analyst Ratings for RRGB
View the Latest Analyst Ratings

Posted-In: btig Food Delivery Peter SalehAnalyst Color Downgrades Restaurants Analyst Ratings General Best of Benzinga

 

Related Articles (RRGB)

View Comments and Join the Discussion!

Latest Ratings

StockFirmActionPT
TOLGoldman SachsInitiates Coverage On42.0
KBHGoldman SachsInitiates Coverage On36.0
YEXTSunTrust Robinson HumphreyMaintains28.0
LHCGSunTrust Robinson HumphreyMaintains160.0
DLRSunTrust Robinson HumphreyMaintains140.0
View the Latest Analytics Ratings
Don't Miss Any Updates!
News Directly in Your Inbox
Subscribe to:
Benzinga Trading Daily
Get pre-market outlook, mid-day update and after-market roundup emails in your inbox.
Market in 5 Minutes
Everything you need to know about the market - quick & easy.
Daily Analyst Rating
A summary of each day’s top rating changes from sell-side analysts on the street.
Thank You

Thank you for subscribing! If you have any questions feel free to call us at 1-877-440-ZING or email us at vipaccounts@benzinga.com

Argus Expects Old Dominion To Ride On Strong Fundamentals, Spillover Effect

Celgene Wins One Bull, Loses Another On Revlimid Potential