U.S. markets close in 4 hours 49 minutes
  • S&P 500

    3,249.14
    -60.97 (-1.84%)
     
  • Dow 30

    26,242.87
    -416.24 (-1.56%)
     
  • Nasdaq

    10,889.46
    -296.13 (-2.65%)
     
  • Russell 2000

    1,534.89
    -26.69 (-1.71%)
     
  • Crude Oil

    35.58
    -0.59 (-1.63%)
     
  • Gold

    1,883.00
    +15.00 (+0.80%)
     
  • Silver

    23.66
    +0.30 (+1.28%)
     
  • EUR/USD

    1.1682
    +0.0004 (+0.04%)
     
  • 10-Yr Bond

    0.8570
    +0.0220 (+2.63%)
     
  • GBP/USD

    1.2938
    +0.0015 (+0.12%)
     
  • USD/JPY

    104.6580
    +0.0480 (+0.05%)
     
  • BTC-USD

    13,418.36
    +119.51 (+0.90%)
     
  • CMC Crypto 200

    262.12
    -1.51 (-0.57%)
     
  • FTSE 100

    5,549.40
    -32.35 (-0.58%)
     
  • Nikkei 225

    22,977.13
    -354.81 (-1.52%)
     

Red Robin (RRGB) Provides Business Updates Amid Coronavirus

Zacks Equity Research
·3 mins read

Red Robin Gourmet Burgers, Inc. RRGB recently provided an update on its business and initiatives that it is undertaking in response to the coronavirus pandemic.

To contain the spread of the virus, the company has temporarily closed 35 company-operated restaurants. Moreover, the company announced temporary pay cuts of 20% for all non-furloughed restaurant support center and restaurant supervisory team members, effective as of Apr 20, 2020, in an effort to reduce costs.

Paul J.B. Murphy III, Red Robin’s president and CEO, said “I’d like to thank all of our Team Members that have been working tirelessly to optimize our off-premise execution, grow our to-go, delivery, and catering channels, and deliver on the Red Robin brand promise to our communities.”

Shares of the company have fallen 64.1% in the past year, compared with the industry’s decline of 10.4%.

 

Revenues Declines Due to COVID-19

The company’s comparable restaurant revenues were up 3.4% quarter to date through Feb 23. Moreover, for the week ended Mar 1, comparable restaurant revenues inched up 0.9%. However, revenues started decline afterwards. For the week ended, Mar 8, Mar 15, Mar 22, Mar 29, Apr 5 and Apr 12, comparable restaurant revenues fell 3.7%, 26.3%, 72.7%, 70.5%, 63.9% and 65.2%, respectively.

Let’s look at earnings estimate revisions in order to get a clear picture of what analysts are thinking about the company.  In the past 30 days, the Zacks Consensus Estimate for 2020 and 2021 earnings has declined $3.25 and $1.29, respectively.

The company currently has a Zacks Rank #3 (Hold).

Stocks to Consider

Some better-ranked stocks worth considering in the same space include BJ's Restaurants, Inc. BJRI, Dine Brands Global, Inc. DIN and Potbelly Corporation PBPB. All these stocks carry a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

BJ's Restaurants and Potbelly have an impressive long-term earnings growth rate of 15% and 17.5%, respectively.

Dine Brands Global’s current-year earnings are likely to witness growth of 4%.

Today's Best Stocks from Zacks

Would you like to see the updated picks from our best market-beating strategies? From 2017 through 2019, while the S&P 500 gained and impressive +53.6%, five of our strategies returned +65.8%, +97.1%, +118.0%, +175.7% and even +186.7%.

This outperformance has not just been a recent phenomenon. From 2000 – 2019, while the S&P averaged +6.0% per year, our top strategies averaged up to +54.7% per year. 

See their latest picks free >>


Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
 
BJ's Restaurants, Inc. (BJRI) : Free Stock Analysis Report
 
DINE BRANDS GLOBAL, INC. (DIN) : Free Stock Analysis Report
 
Red Robin Gourmet Burgers, Inc. (RRGB) : Free Stock Analysis Report
 
Potbelly Corporation (PBPB) : Free Stock Analysis Report
 
To read this article on Zacks.com click here.
 
Zacks Investment Research