Red Robin Gourmet Burgers Q1 Results Top Estimates, Shares Climb - Update

(RTTNews) - Red Robin Gourmet Burgers, Inc. (RRGB), a casual dining restaurant chain, Tuesday reported a higher first-quarter profit, reflecting about 11 percent growth in revenues. Earnings per share as well as revenues beat analysts' expectations. The shares rose about 10 percent in the morning trade.

For the first quarter ended April 20, 2014, the company's net income increased to $11.94 million or $0.82 per share from $9.48 million or $0.66 per share in the previous year.

On average, 12 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 percent to $340.48 million from $306.35 million last year. Wall Street expected revenues of $334.80 million.

System-wide restaurant revenue, including franchised units, totaled $457.3 million, up from $415.6 million at constant currency rates.

Comparable restaurant revenue increased 5.4 percent. In the first quarter, guest counts edged up 0.5 percent, while average guest check increased 4.9 percent.

Steve Carley, chief executive officer of the company said, "The success of our new FinestTM line of Black Angus burgers as well as increased media contributed to our higher sales."

For fiscal year 2014, sensitivity of the company's earnings per share to a 1 percent change in guest counts 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 share by about $0.07, and a change of nearly $200 thousand in pre-tax income or expense is equivalent to about $0.01 per share, the company said.

The firm expects comparable restaurant revenue growth in the low single digits for the year. The company said its outlook does not include impact of the anticipated acquisition of 32 restaurants which is expected to close in late summer.

In addition, it plans to open 20 new Red Robin restaurants and five Red Robin's Burger Works.

Red Robin's 2014 fiscal year consists of 52 weeks and will end on December 28, 2014.

RRGB is currently trading at $70.20, up $6.35 or 9.95 percent.