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Red Robin Gourmet Burgers (NASDAQ:RRGB) soared on Monday after the restaurant operator announced preliminary results and outlined a plan to drive long-term shareholder value.
For Q4, RRGB expects to report total revenue of approximately $290.2M off comparable restaurant revenue growth of 2.5%
Looking ahead, the company said it is committed to taking bold action through new executive leadership to deliver long term sustainable growth and has identified multiple levers to build sales and increase profitability. The five-point plan includes empower decision making by operators at the unit level, elevating the guest experience, removing costs and complexity, optimizing guest engagement, and driving growth in comparable restaurant revenue & unit level profitability.
In addition, Red Robin also announced it is evaluating a sale-leaseback transaction related to up to 35 owned properties. The Company has engaged CBRE Group to lead the process and anticipates the proceeds will be used to repay debt, fund capital investments, and repurchase shares of company stock.
Shares of RRGB rose 15.50% in Monday afternoon trading.
