Why Red Robin Gourmet Burgers Stock Crashed on Thursday
Shares of Red Robin Gourmet Burgers (NASDAQ: RRGB) are plunging today, down by 17.8% as of 11:52 a.m. EDT, after the company delivered disappointing earnings results for the fiscal second quarter. While year-over-year revenue growth of 71.9% shows Red Robin's business is recovering well, it wasn't enough to boost investor confidence in the near-term outlook, as the pandemic just won't go away.
The broader markets were trading down in early trading as concerns shifted to economic growth and the spread of the coronavirus delta variant. The latter throws into question the near-term recovery of brick-and-mortar businesses, which is not good news for Red Robin.
The sell-off brings Red Robin's year-to-date performance below that of other restaurant stocks.
Source Fool.com
