Red Robin Gourmet Burgers Q4 Adj. Profit Tops View, But Revenues Miss

(RTTNews) - Red Robin Gourmet Burgers Inc. (RRGB), a casual dining restaurant chain, said that its fourth-quarter of 2013 net income increased to $6.96 million from $6.49 million in the prior year quarter. GAAP earnings per share for the 12 weeks in the 2013 fiscal fourth quarter were $0.48 compared to $0.45 for the 13 weeks in the 2012 fourth quarter.

The company recorded an impairment charge and a non-recurring special bonus totaling $3.1 million in the fourth quarter of fiscal year 2013 while the 2012 fourth quarter was impacted by a $2.9 million debt refinancing charge.

Adjusted earnings per share were $0.62 compared to $0.59 per share in the prior year quarter. Analysts polled by Thomson Reuters expected the company to report earnings of $0.59 per share for the quarter. Analysts' estimates typically exclude special items.

Total Company revenues, which include Company-owned restaurant revenues and franchise royalties, increased 0.5% to $241.9 million from $240.7 million last year. Ten analysts estimated revenues of $243.14 million for the quarter.

Comparable restaurant revenues increased 3.7% in the fourth quarter of fiscal year 2013 compared to the prior fiscal year on a 12-week comparable basis. In the fourth quarter, guest counts decreased 1.4% while average guest check increased 5.1%.

In fiscal year 2014, the company expects comparable restaurant sales 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. In addition to the new restaurants, the Company also plans to remodel 50 Red Robin restaurants as part of its brand transformation initiative.

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.