Shares of Red Robins Gourmet Burgers tank after disappointing 2Q preliminary earnings report

Shares in Red Robin Gourmet Burgers Inc. (NASDAQ:RRGB) tumbled Thursday in premarket trade after the casual dining restaurant chain gave a weak preliminary second-quarter report

Red Robbin stock plunged 24.10% to US$34.80 in premarket trade.

The Colorado-based  burger maker expects to report a loss of US$0.14, driven by a US$0.54 asset impairment charges, and adjusted earnings of US$0.46. Revenue is expected to total $315.4 million. 

The FactSet consensus as of had called for earnings of US$0.65 and revenue of US$323.6mln. 

“We are disappointed with our performance in the second quarter. While we remain confident in the strategy that we have in place to address the shifts going on within casual dining, we simply didn’t execute as well as we should have,” said Red Robbin CEO Denny Marie Post.

For the full year, the company expects total revenues to range from US$1.35bn to $1.36bn, including a comparable restaurant revenue decrease of 1.0% to 2.0% and earnings per diluted share to range from US$1.80 to US$2.20.

Red Robin will announce its second-quarter results after hours on August 21.

Contact Uttara Choudhury at [email protected]

Follow her on Twitter: @UttaraProactive 

Story by ProactiveInvestors