- Red Robin released its Q3 results earlier this month, reporting a ~34% increase in comparable store sales year-over-year, and a 0.6% increase on a two-year basis.
- Unfortunately, comp sales are tracking slightly above 2019 levels, unit growth has left a lot to be desired, explaining the 6% decline in revenue relative to 2019.
- Meanwhile, inflationary pressures and staffing challenges have weighed on operating hours and margins, with restaurant-level operating margins down sharply vs. Q3 2019.
- After a more than 50% decline, Red Robin is short-term oversold, but I still don't see enough of a margin of safety at current levels from a valuation standpoint.
For further details see:
Red Robin Gourmet: Staffing Challenges Persist In Q3