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Shares ofRed Robin Gourmet Burgers Inc.(NASDAQ: RRGB) rose 28% in the March,according to data fromS&P Global Market Intelligence, on the heels of the restaurant chain's encouraging fiscal fourth-quarter 2017 report in late February.
That's not to say Red Robin's quarter looked jaw-droppingly good on the surface. Revenue climbed a modest 1.8% year over year, to $291.5 million, driven entirely by contributions from newer locations. Comparable-restaurant revenue -- which includes those restaurants that have operated for at least five full quarters -- declined 4.3%. On the bottom line, that translated to adjusted earnings per share of $0.35, down from $0.86 per share in the same year-ago period. By comparison, however, analysts were expecting adjusted earnings of just $0.29 per share on slightly higher revenue of $297 million.
IMAGE SOURCE: RED ROBIN GOURMET BURGERS INC.
Red Robin CEO Denny Marie Post elaborated:
During the subsequent conference call, Red Robin management also promised to share more details at the company's analyst meeting in May regarding its "multi-year vision" and results of the testing and rollout of its off-premise business efforts.
But given Red Robin's improving guest service scores already, as well as its expected return to earnings growth later this year, it was no surprise to see investors bidding up Red Robin stock last month.
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