Market Insider

Red Robin shares stumble after sales miss

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A burger and fries from Red Robin.
Adam Jeffery | CNBC

Shares of Red Robin fell 18 percent Tuesday after the company reported quarterly revenue that fell short of Wall Street estimates.

The burger chain's revenue increased 1.8 percent to $402.1 million, yet missed analysts' consensus estimates of $415 million, according to Thomson Reuters. The company's comparable restaurant revenue declined 2.6 percent in the first quarter.

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Red Robin cited a 4.1 percent drop in guests for the sales drop.

"We were disappointed, particularly with our guest counts," Steve Carley, Red Robin CEO, said in a statement. "We have a solid strategy for long-term success, including a number of operations and marketing initiatives."

Source: FactSet

The Colorado-based company's earnings per share came in at $1.03 for the first quarter, compared to analysts' estimates of $1.11 per share. Earnings per share were $1.16 for the same quarter a year earlier.

Red Robin's stock dipped 17.4 percent this week, trading around $50 a share. Shares are down more than 30 percent year over year, after touching a 52-week high of $95.00.