Why Is Red Robin (RRGB) Up 0.8% Since Last Earnings Report?

Core Viewpoint - Red Robin's first-quarter fiscal 2024 results showed earnings and revenues falling short of the Zacks Consensus Estimate, marking the second consecutive quarter of earnings misses [1][7]. Financial Performance - The company reported an adjusted loss per share of $0.80, which was wider than the consensus estimate of a loss of $0.41, compared to an adjusted loss of $0.25 in the prior-year quarter [7]. - Quarterly revenues totaled $388.5 million, missing the consensus mark of $397 million and representing a 7% year-over-year decrease, primarily due to poor restaurant revenues [16]. - The restaurant-level operating profit margin was 11%, down from 14.7% in the prior-year quarter [3]. - Adjusted EBITDA for the quarter was $12.2 million, significantly lower than $35.9 million in the prior-year quarter [10]. - Comparable restaurant revenues fell by 6.5% year over year, with guest traffic declining by 9.4%, although this was partially offset by a 2.9% increase in guest checks due to a 5.4% rise in menu prices [8]. Balance Sheet and Debt - As of April 21, 2024, Red Robin had cash and cash equivalents of $30.6 million, up from $23.6 million as of December 31, 2023 [2]. - Long-term debt decreased to $162 million from $182.6 million in the prior-year quarter [2]. - Inventories were reported at $27.1 million, slightly up from $26.8 million in the previous quarter [2]. Strategic Initiatives - The recent launch of a new loyalty program is seen as a positive step in revitalizing the brand within the casual dining industry, with early progress encouraging the company [6]. Future Guidance - For fiscal 2024, the company maintains its revenue guidance in the range of $1.25 billion to $1.275 billion, with restaurant-level operating profit expected between 12.5% and 13.5% [19]. - Capital expenditures are anticipated to be between $25 million and $35 million, and adjusted EBITDA is expected to range from $60 million to $70 million [19]. Market Sentiment - There has been an upward trend in fresh estimates for the company, with a notable shift of 29.07% in consensus estimates [4][20]. - The stock has a Zacks Rank of 3 (Hold), indicating expectations for an in-line return in the coming months [23].