Why Red Robin Stock Tanked Wednesday
Shares of Red Robin Gourmet Burgers (NASDAQ: RRGB), a chain of burger restaurants, sank as much as 13% Wednesday after the company released slightly disappointing first-quarter results.
In not-so-surprising news, Red Robin reported a tough first quarter thanks to the closure of many of its dine-in restaurants during the COVID-19 pandemic. Red Robin's non-GAAP (adjusted) per-share loss checked in at $6.66, far worse than analysts' forecast of $1.34 per share. Total revenue declined 25.3% from the prior year, driven by a 20.8% decline in comparable restaurant revenue and a 20.9% decline in comparable restaurant guest counts. The company was able to shift its focus, and off-premise sales increased 86%. Restaurant operating profit margin dropped 950 basis points to 8.8%.
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Source Fool.com
