Shares of burger restaurant chain Red Robin (NASDAQ:RRGB)
jumped 5.3% in the morning session after the company reported a surprise second-quarter profit and a significant improvement in margins, which overshadowed a drop in revenue and a lowered full-year forecast. Red Robin delivered an adjusted profit of $0.26 per share, crushing analysts' expectations for a loss of $0.06. This strong bottom-line performance was driven by improved efficiency, as the company’s operating margin increased to 3.5%, a significant 5-percentage-point jump from the same quarter last year. Adjusted EBITDA, a key measure of profitability, also came in at $22.4 million, beating Wall Street's estimates by over 24%. These positive results resonated with investors, outweighing concerns from a 5.5% year-on-year revenue decline, a 3.2% drop in same-store sales, and lowered revenue and EBITDA guidance for the full year.
Burger restaurant chain Red Robin (NASDAQ:RRGB) reported Q2 CY2025 results exceeding the market’s revenue expectations, but sales fell by 5.5% year on year to $283.7 million. On the other hand, the company’s full-year revenue guidance of $1.2 billion at the midpoint came in 1% below analysts’ estimates. Its non-GAAP profit of $0.26 per share was significantly above analysts’ consensus estimates.
Burger restaurant chain Red Robin (NASDAQ:RRGB) reported Q2 CY2025 results beating Wall Street’s revenue expectations, but sales fell by 5.5% year on year to $283.7 million. On the other hand, the company’s full-year revenue guidance of $1.2 billion at the midpoint came in 1% below analysts’ estimates. Its non-GAAP profit of $0.26 per share was significantly above analysts’ consensus estimates.
Red Robin Gourmet Burgers (RRGB) beats Q2 EPS estimates with $0.26 vs. -$0.16 expected, driving a 3.3% after-hours stock surge. Revenue slightly missed at $283.7M.
Shares of burger restaurant chain Red Robin (NASDAQ:RRGB)
jumped 6.6% in the afternoon session after investors cheered a government report showing that inflation remained steady in July. The steady inflation figures have fueled expectations that the Federal Reserve may soon consider an interest rate cut to stimulate the economy, a move that would likely benefit consumer discretionary spending, including dining out.
A company that generates cash isn’t automatically a winner.
Some businesses stockpile cash but fail to reinvest wisely, limiting their ability to expand.
A number of stocks fell in the afternoon session after a surprisingly weak U.S. jobs report and renewed fears over international trade policy fueled concerns about a slowdown in consumer spending.
Wall Street is overwhelmingly bullish on the stocks in this article, with price targets suggesting significant upside potential.
However, it’s worth remembering that analysts rarely issue sell ratings, partly because their firms often seek other business from the same companies they cover.
Shares of burger restaurant chain Red Robin (NASDAQ:RRGB)
jumped 7.8% in the afternoon session after it was among a group of consumer stocks with high short interest that rallied.
Shares of burger restaurant chain Red Robin (NASDAQ:RRGB)
jumped 9.5% in the afternoon session after the casual dining chain announced its "First Choice" strategic plan and an improved profitability forecast for the second quarter. The company unveiled its new "First Choice" plan, a five-point strategy focused on strengthening operations, driving customer traffic, managing costs to reduce debt, improving restaurant facilities, and fostering a high-performance culture. While Red Robin now expects a comparable restaurant sales decrease of about 4% for the second quarter, slightly worse than its previous forecast, it anticipates that its Adjusted EBITDA will come in higher than the prior guidance of $13 million to $16 million. EBITDA, which stands for Earnings Before Interest, Taxes, Depreciation, and Amortization, is a key measure of a company's operating performance.
Shares of burger restaurant chain Red Robin (NASDAQ:RRGB)
fell 4.7% in the afternoon session after the company continued to navigate a challenging environment marked by store closures and significant financial losses. The company has been grappling with the effects of rising dining costs, which has led to a pullback in consumer spending at fast-casual restaurants. In response to these pressures, Red Robin has been strategically closing underperforming locations.
A number of stocks jumped in the afternoon session after the major indices rebounded (Nasdaq +1.4%, S&P 500 +1.0%) on hopes the reported ceasefire between Israel and Iran will hold. This de-escalation in a volatile region helped to ease concerns about potential disruptions to global oil supplies, leading to a notable dip in crude oil prices.
A highly volatile stock can deliver big gains - or just as easily wipe out a portfolio if things go south.
While some investors embrace risk, mistakes can be costly for those who aren’t prepared.
