Red Robin Gourmet Burgers Inc. (RRGB) stock prices were down by 19.58% some time after market trading commenced on August 19th, 2021. This brought the price per share down to USD$19.76 early on in the trading day.
RRGB Stock’s Revenue Breakdown
The second quarter of fiscal 2021 saw RRGB stock report restaurant revenue in the amount of USD$272.2 million. Restaurant Level Operating Profit as a percentage of restaurant revenue was reported at 15.7%. the company reported comparable restaurant revenue having increased by 66.3% for Q2 2021 as compared to Q2 2020. Numbers for the 2021 quarter were 2.4% lower than numbers reported for the second quarter of fiscal 2019.
Average Weekly Sales
Average weekly sales for the second quarter of 2021 were reported as being USD$2503 higher than numbers from the prior-year quarter. Off premises sales made up 32.8% of total food and beverage sales for the second quarter of 2021. Q2 2020 reported 63.8%, while Q2 2019 reported 12.5% of total food and beverage sales being comprised of off-premises sales.
RRGB Stock Adapts to the Pandemic
By the end of the second quarter of fiscal 2021, restaurants that were able to operate at full capacity exhibited promising growth in comparable restaurant revenue. Restaurants with 100% indoor dining capacity and with full hours indicated a 7% increase from the 2019 quarter. Meanwhile, the restaurant margin came in at 19.5%, up 1.8% from the second quarter of fiscal 2019. Restaurants that offered Donatos pizza outperformed the rest of the system. The difference was a significant 550 basis points, as compared to the second quarter of 2019. Reports surpassed the original restaurant sales growth target by 250 basis points.
Solid Liquidity Position
RRGB stock reported having made net repayments of USD$9.4 million on its Amended and Restated Credit Agreement during Q2 2021. As of July 11th, 2021, the company reported USD$153.9 million in outstanding borrowings under its credit facility. This is in addition to amounts issued under letters of credit in the amount of USD$8.6 million. The company reported a solid liquidity position with roughly USD$116.9 million in cash on hand and available borrowing capacity.
Future Outlook for RRGB Stock
With the world still struggling with the persistent effects of the global pandemic, RRGB stock is keen to set the stage for a post-pandemic economy. The economic recovery is hoped to boost the company’s performance as it takes steps to continue adapting to the Covid-19 crisis in an effort to stay afloat. Investors are hopeful that management will be able to facilitate consistent returns in shareholder value over the long term.
