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Investing.com -- Red Robin Gourmet Burgers, Inc. (NASDAQ:RRGB) saw its shares surge over 40% on Wednesday after the restaurant chain reported a surprise profit for the first quarter and outlined strategic priorities to drive growth.
The company posted adjusted earnings per share of $0.19, significantly beating analyst expectations for a loss of $0.39 per share. Revenue came in at $392.4 million, up 1% YoY but slightly below the consensus estimate of $395.4 million.
Comparable restaurant sales increased 3.1% compared to the same quarter last year. Red Robin swung to a net income of $1.2 million, a $10.7 million improvement from the $9.5 million loss reported in Q1 2024.
"We are pleased with our strong start to the year as we delivered increases in both sales and profits during the first quarter," said CEO David Pace. He noted the company has made significant investments in food quality and hospitality over the past two and a half years, creating a strong operational foundation.
Pace outlined four strategic priorities going forward: maintaining operational execution, driving sustainable traffic growth, strengthening the financial position, and reinvesting in restaurants.
For fiscal 2025, Red Robin now expects revenue between $1.21 billion and $1.23 billion, slightly below the previous guidance range of $1.225 billion to $1.25 billion. The company maintained its adjusted EBITDA forecast of $60 million to $65 million.
The restaurant chain repaid $17.8 million of debt during the quarter and completed the sale of three owned properties for gross proceeds of $5.8 million.
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