Red Robin Gourmet Burgers hits record low on bigger-than-expected Q2 loss

Red Robin Gourmet Burgers

23/08/2024 15:06

(Updates)
    ** Shares of Red Robin Gourmet Burgers  RRGB.O  fall ~17% to
hit record low of $3.92 
    ** Restaurant chain posts Q2 adjusted loss of 48 cents
compared to LSEG estimates of a loss of 46 cents
        ** Restaurants are seeing a hit from consumers choosing
to eat at home more often than dine out as persistent inflation
eats into their income
  
        ** This has pushed fast food chains like McDonald's and
Burger King to offer value meals 
  
        ** RRGB is also offering a $10 meal on Tuesdays, rolled
out recently to lure price-sensitive customers
  
    ** Co forecasts FY24 revenue of $1.25 bln, in line with
analyst estimates
    ** At least three brokerages slash PT after results
    ** Avg. rating of brokerages is "buy", with a median PT of
$10.75 - LSEG data
    ** Up to last close, stock was down 62.1% so far this year

 (Reporting by Khushi Singh and Ananya Mariam Rajesh in
Bengaluru)
 ((Khushi.Singh@thomsonreuters.com;))