Red Robin Gourmet Burgers Q1 Profit Increases - Quick Facts

(RTTNews) - Red Robin Gourmet Burgers Inc. (RRGB), a casual dining restaurant chain, said that net income for the first quarter of 2014 increased 26.0% to $11.9 million from the prior year's $9.5 million, with earnings per share improving 24.2% to $0.82 from $0.66 in the same quarter a year ago. Analysts polled by Thomson Reuters expected the company to report earnings of $0.72 per share for the quarter. Analysts' estimates typically exclude special items.

Total Company revenues, which include Company-owned restaurant revenue and franchise royalties, grew 11.1% to $340.5 million from $306.3 million last year. Wall Street expected revenues of $334.80 million.

System-wide restaurant revenue, including franchised units, totaled $457.3 million, compared to $415.6 million for the first quarter in 2013 at constant currency rates.

Comparable restaurant revenue increased 5.4% in the first quarter of 2014 compared to the prior year. In the first quarter, guest counts increased 0.5%, supported by increased media this year, while average guest check increased 4.9%.

The sensitivity of the Company's earnings per share to a 1% change in guest counts for fiscal year 2014 is estimated to be $0.30 on an annualized basis. Additionally, a 10 basis point change in restaurant-level operating margin is expected to impact earnings per diluted share by approximately $0.07, and a change of approximately $200,000 in pre-tax income or expense is equivalent to approximately $0.01 per share.

In fiscal year 2014, the Company expects comparable restaurant revenue growth in the low single digits. Additionally, the Company plans to open 20 new Red Robin restaurants and five Red Robin's Burger Works resulting in total operating week growth of between 6% and 7%.

Capital investments in fiscal year 2014 are expected to total between $85 million and $90 million, excluding acquisitions. In addition to the new restaurant openings, the company also plans to remodel at least 50 Red Robin restaurants as part of its brand transformation initiative.

Red Robin's 2014 fiscal year consists of 52 weeks and will end on December 28, 2014. The company's outlook does not include the impact of the anticipated acquisition of 32 restaurants which is expected to close in late summer.