Red Robin Gourmet Burgers-Red Robin Gears Up for Q1 Earnings: Key Factors to Note

Core Viewpoint - Red Robin Gourmet Burgers, Inc. is expected to report a loss in its first-quarter fiscal 2025 results, with significant challenges from high expenses and a tough macroeconomic environment [1][2]. Q1 Estimates - The Zacks Consensus Estimate anticipates a loss of 57 cents per share, an improvement from an adjusted loss of 80 cents per share in the prior-year quarter [2]. - Revenue estimates are set at $387.4 million, reflecting a year-over-year decline of 0.3% [2]. Factors Impacting Performance - The company's performance is likely to be negatively impacted by high expenses related to sales-building initiatives, including advertising and technical upgrades [2]. - Increased costs from remodeling, restaurant maintenance, and staffing are also expected to contribute to the financial pressures [2]. - Dismal traffic remains a concern for the company [2]. Positive Initiatives - Red Robin's focus on loyalty programs and strategic initiatives aimed at driving growth may have positively influenced its performance [3]. - The company has made significant investments in food quality and hospitality, leading to improved guest satisfaction [4]. - The introduction of flat-top grills and menu upgrades for over 85% of its offerings have enhanced the gourmet burger experience [4]. Revenue Predictions - Restaurant revenues for Q1 fiscal 2025 are predicted to decrease by 1.7% year over year to$ 372.2 million, while same-store sales are expected to increase by 3.7% year over year [5]. Earnings Prediction Model - The Zacks model indicates that Red Robin is unlikely to achieve an earnings beat this quarter, with an Earnings ESP of -2.35% and a Zacks Rank of 3 [6].