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Red Robin (RRGB) to Report Q1 Earnings: What's in the Offing?

Red Robin Gourmet Burgers, Inc. RRGB is scheduled to report first-quarter fiscal 2023 results on May 24, after the closing bell. In the last reported quarter, the company delivered a negative earnings surprise of 104.6%.

Q1 Estimates

The Zacks Consensus Estimate is pegged at a loss of 62 cents per share. In the prior-year quarter, RRGB reported a loss per share of 12 cents. The consensus mark for revenues is pegged at $405.2 million, suggesting growth of 2.5% year over year.

Factors at Play

Red Robin's fiscal first-quarter performance is likely to have benefited from robust off-premise sales, menu innovation and robust loyalty program. The  top line is likely to have gained from robust restaurant revenues. Our models predicts restaurant revenues during first-quarter 2023 to increase 2.6% year over year to $390.6 million.

RRGB is likely to have gained from increased focus on Donatos' menu expansion. It anticipates approximately 25 Donatos installations in fiscal 2023.

On the flip side, higher costs are likely to have weighed on the company’s bottom line. Red Robin has been witnessing rising costs and expenses in the recent quarters.

It has been investing heavily in several sales building initiatives like advertising and technical upgrades, which might have resulted in elevated costs. In first-quarter 2023, our model estimates total costs and expenses to increase 3.7% year over year to $405.6 million.

Red Robin Gourmet Burgers, Inc. Price and EPS Surprise

Red Robin Gourmet Burgers, Inc. price-eps-surprise | Red Robin Gourmet Burgers, Inc. Quote

What the Zacks Model Unveils

Our proven model doesn’t conclusively predict an earnings beat for Red Robin this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat.

Earnings ESP: Red Robin has an Earnings ESP -32.26%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Zacks Rank: Red Robin has a Zacks Rank #5 (Strong Sell).

Stocks With Favorable Combination

Here are three companies you may want to consider as our model shows that these have the right combination of elements to post an earnings beat this season.

Walmart WMT currently has an Earnings ESP of +1.16% and a Zacks Rank #3. WMT’s bottom line is expected to increase when it reports first-quarter fiscal 2023 results. The Zacks Consensus Estimate for earnings per share is pegged at $1.31, which suggest a marginal increase of 0.8% from the year-ago period. You can see the complete list of today’s Zacks #1 Rank stocks here.

Walmart’s top line is expected to rise year over year. The Zacks Consensus Estimate for revenues is pegged at $148.7 billion, indicating a rise of 5% from the prior-year quarter’s reported figure. WMT delivered an earnings beat of 6.5%, on average, in the trailing four quarters.

Urban Outfitters URBN currently has an Earnings ESP of +2.27% and a Zacks Rank #3. URBN is likely to register a bottom-line improvement while reporting first-quarter fiscal 2024 results. The Zacks Consensus Estimate for earnings per share of 37 cents suggests a gain of 12.1% from the year-ago quarter.

Urban Outfitters’ top line is expected to rise year over year. The Zacks Consensus Estimate for revenues is pegged at $1.09 billion, implying growth of 3.9% from the prior-year quarter’s reported figure.

American Eagle Outfitters AEO currently has an Earnings ESP of +7.46% and a Zacks Rank #3. AEO is likely to register a bottom-line increase when it reports first-quarter fiscal 2023 numbers. The Zacks Consensus Estimate for earnings per share of 17 cents suggests a rise of 6.3% from the year-ago quarter.

American Eagle Outfitters’ top line is expected to increase year over year. The Zacks Consensus Estimate for revenues is pegged at $1.06 billion, which indicates a marginal increase of 0.9% from the prior-year quarter’s reported figure. AEO has a trailing four-quarter earnings surprise of 0.9%, on average.

Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.

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Red Robin Gourmet Burgers, Inc. (RRGB) : Free Stock Analysis Report

Urban Outfitters, Inc. (URBN) : Free Stock Analysis Report

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