Red Robin Gourmet Burgers, Inc. (RRGB) Advances on Strong First Quarter Earnings
Shares of Greenwood, Colorado, based Red Robin Gourmet Burgers, Inc. (RRGB) rose on Tuesday, against the backdrop of strong day in stocks overall. Red Robin's stock was up 15.34%, rising $11.19 to close at 84.14, on volume of 2,013,355 shares. Earnings for the company's 2015 first fiscal quarter came in well above analyst's expectations.
Red Robin reported that its results for it fiscal 2015 first quarter for the 16 weeks ended on April 19 came in above analysts expectations. The company reported an increase in first-quarter revenues of 16% over the same quarter a year earlier. Revenues came in at $394.9 million, compared to $340.5 for 2014.
Including franchised units, first-quarter revenue totaled $488.1 million, compared to $455.7 million for the first quarter of 2014.
Net income increased by 38.7%, rising to $16.6 million from $11.9 million a year earlier. Earnings per diluted share came in at $1.16, up 41.5% over the $0.82 for the first-quarter of 2014.
In addition to the strong increase in both revenues and net income, investors were also encouraged by the fact that the results exceeded those expected by analysts. Analysts polled by Thomson Reuters expected per-share profit of $0.88 and revenue of $395 million for the first quarter of 2015.
Same-store sales increased by 3.1% in the first quarter of 2015, compared to first quarter of 2014. This was comprised of 1.1% increase in guest counts, and a 2.0% increase in the average guest check.
"Our solid first quarter results are a testament to the excellent performance of our restaurant team members combined with Red Robin's food and beverage innovation, said Steve Carley, Chief Executive Officer of Red Robin Gourmet Burgers, Inc. "Our initiatives are enabling us to continue taking market share including our Brand Transformation remodels which are generating even stronger guest satisfaction scores.
Despite the strong performance in earnings and net income during the first quarter, the company expects total revenue growth in the 12.0% to 12.5% range. Same store revenue growth is expected to come in between 2.5% and 3.0%. In addition, the company plans to open 25 new restaurants during the fiscal year, including four stores during the first quarter. The company also completed remodeling on 18 outlets during the first quarter, bringing the total to 122 through the end of the 2015 first quarter, under the company's Brand Transformation initiative
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