Red Robin Gourmet Burgers, Inc. (NASDAQ:RRGB) reported Q3 earnings that beat Street estimates. The restaurant chain reported earnings of $0.50 per share on $267.4 million in revenue. The Street expected $0.34 per share in earnings, according to Capital IQ; revenue estimates were $267.6 million. In fiscal year 2014, Red Robin expects comparable restaurant revenue growth approaching 3.0%. Red Robin Gourmet Burgers, Inc. (NASDAQ:RRGB) plans to open 19 new Red Robin restaurants and three Red Robin Burger Works resulting in operating week growth of over 6.0%. Restaurants acquired in 2014 are expected to add revenues of $24 million in Q4 2014 and will reduce franchise royalties by approximately $0.7 million.Capital investments in fiscal year 2014 are expected to be approximately $100 million, excluding approximately $51 million related to acquisitions. In addition to the new restaurant openings, the company also plans to remodel at least 65 Red Robin restaurants as part of its brand transformation initiative as well as expand patio seating in a few locations. RRGB trades in a 52-week range of $47.45 to $86.83.Coverage of retail giant Wal-Mart Stores, Inc. (NYSE:WMT) has been initiated by analysts at Sterne Agee with a neutral rating and a price target of $70 a share. The price target on the stock represents a potential downside of 8% from its Monday closing price. Shares of Wal-Mart Stores, Inc. (NYSE:WMT) have a 52-week trading range of $72.27 - $81.37.Arcos Dorados Holdings Inc (NYSE:ARCO) reported Q3 results that missed expectations but was not all gloomy about the outlook, even as it said it plans to suspend dividend payments in 2015. The McDonald's franchisee said net income dropped sharply to $240,000 or $0.00 per share from $19.6 million or $0.09 a year ago on higher costs and a $7.2-million hit due to foreign currency exchange rates. Analysts polled by Capital IQ had expected EPS of $0.10. Revenue fell to $904 million from $1.02 billion, missing the $965.4 million consensus. On an organic basis, and excluding Venezuela, consolidated revenue rose 6% in the quarter. Comparable systemwide sales rose 7.4%."At the start of the fourth quarter, we are seeing some evidence of stabilizing volume trends and are optimistic that we can benefit from a seasonal pick-up in consumer activity and the promotional campaigns that we have planned through year-end," CEO Woods Staton said in a statement Despite the slight optimism, Arcos Dorados Holdings Inc (NYSE:ARCO) said the company now expects organic revenue growth to be at the low end of its guidance. "EBITDA trends have been volatile and difficult to predict and, so far, organic EBITDA results are trending below our forecast for the fourth quarter," Staton said. He said the company expects a continued soft market next year and is recommending to the board that dividends are suspended in 2015. ARCO closed near the lower end of the 52-week range between $5.40 and $12.62.
Discover Hidden Gems
Don't miss the next big opportunity. Subscribe for timely alerts on potential market movers.
