Red Robin (RRGB) Q1 Earnings Report Preview: What to Watch For

Burger restaurant chain Red Robin ( NASDAQ:RRGB ) will report earnings after the bell tomorrow. Here’s what to expect.

Red Robin beat analyst revenue expectations by 1.3% last quarter, reporting revenue of $309 million, up 6.7% year-over-year. It was a mixed quarter for the company, with analyst revenue estimates improving but analyst earnings estimates missing.

Does buying or selling Red Robin affect earnings? Read our full analysis here, it’s free.

Analysts expect Red Robin’s revenue to decline 6% year-over-year to $392.7 million this quarter, marking a reversal of growth from the 5.7% growth reported in the same quarter last year. Adjusted loss is expected to be -$0.62 per share.

Most analysts covering the company have reaffirmed their estimates over the last 30 days, suggesting they expect the company to remain on track towards earnings. Red Robin has missed Wall Street revenue estimates twice in the last two years.

Looking at Red Robin’s competitors in the sit-down restaurant segment, some have already reported their first-quarter results, which gives us a hint of what to expect. BJ’s revenues fell 1.2% year-over-year, meeting analyst expectations, and The Cheesecake Factory saw revenues grow 2.9%, in line with the consensus. Following the results, BJ’s was up 5.9% and The Cheesecake Factory was also up 6.2%.

Read our full analysis of BJ’s results here and The Cheesecake Factory’s results here.

Growth stocks have seen increased volatility as investors debate the Fed’s monetary policy, and while some restaurant stocks have performed slightly better, they haven’t been spared, with share prices down an average of 4.1% over the past month. Meanwhile, Red Robin is down 11.7% and heading toward earnings, with an average analyst price target of $15.3 (versus the current share price of $6.71).

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