Red Robin Gourmet Burgers (RRGB) Surges On Higher Revenue
Founded in 1969, Red Robin Gourmet Burgers, Inc. is in the business of food and beverages at company-owned restaurants, focusing specifically on serving gourmet burgers.
Shares of Greenwood, Colorado, based Red Robin Gourmet Burgers, Inc. (RRGB) rose sharply on Tuesday, on a mixed day on Wall Street. The stock was up 15.54%, or $8.53 per share, to close at $63.42. The bounce took place on volume of 1,129,268 shares - more than three times its normal volume. The company reported that revenues were up, but net income was up sharply, and easily exceeded analysts expectations.
On Tuesday, Red Robin reported that revenue for the 12 weeks ended October 6 came in at $267.4 million, in increase of 15.9% over the $230.7 million reported for the same period in 2013. The company also reported net income of $7.2 million, compared to $4.7 million for the same period in 2013.
Earnings per diluted share came in at $0.50 per share, which represented an increase of greater than 56% over the $0.33 reported for the same period in 2013. This was also considerably higher than the $0.33 average earnings per diluted share that analysts surveyed by Zack's Investment Research had been expecting. Year to date through October 6, the company had net income of $28.6 million, compared to $25.3 million for the same period a year ago.
Just as important, Red Robin reported that comparable restaurant revenue increased by 0.9 over the same period a year ago. The company is showing solid growth in the ultra-competitive restaurant industry. In addition, third quarter guest counts decreased 2.3%, while average guest check increased 3.2%. The company also reported that the number of company owned restaurants increased from 345 one year ago, to 402 such outlets by the end of the third fiscal quarter of this year.
For fiscal 2014, restaurant-level operating profit margins are expected to be 21.3%. Red Robin expects comparable restaurant revenue growth at 3.0% for the full year. It also plans to open 19 new Red Robin restaurants and three Red Robin Burger Works, which should result in operating week growth of over 6.0%.
"We are pleased with our performance during the third quarter," said Red Robin Gourmet Burgers, Inc. chief executive officer Steve Carley. "We continue to focus on delivering superior value to our guests with great menu items and transforming our restaurants with new environments and elevated service."
Other News About Red Robin Gourmet Burgers
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