Red Robin soars after strong comparable restaurant sales growth

Red Robin Gourmet Burgers

27/05/2022 15:09

** Red Robin Gourmet Burgers  RRGB.O  shares up 21.3% at
$10.45 after restaurant chain's qtrly report impresses
    ** RRGB on track for biggest one-day pct gain since Nov 2020
    ** Q1 comp restaurant sales increased 19.7% yr/yr, topping
consensus view of 16% rise, per Refinitiv data  urn:newsml:reuters.com:*:nBw6m5bXJa
    ** Reported net loss of $3.1 mln down from $8.7 mln loss in
yr-ago period
    ** Co reiterated 2022 outlook, including adj EBITDA of
$80-$90 mln, despite raising commodity cost inflation guidance
to low double-digit inflation, up from mid-to-high single digits
for full yr
    ** Jefferies in note points to Q1 sales and margin beat as
staffing headwinds easing and continued recovery at dine-in
restaurants driving "solid" momentum
    ** Brokerage sticks with "buy" rating, lowers PT by $12 to
$16 to reflect broader market/peer multiple compression
    ** With move on Fri, shares down ~37% YTD vs S&P 600
Restaurants index's  .SPSMCREST  ~16% decline

 (Lance Tupper is a Reuters market analyst. The views expressed
are his own)
 ((lance.tupper@thomsonreuters.com
lance.tupper@tr.com 1-332-219-1430))