Red Robin Gourmet Burgers Q4 Profit Down, Results Miss Estimates; Stock Down

(RTTNews) - Red Robin Gourmet Burgers Inc. (RRGB) reported that its net income for the fourth-quarter ended December 28, 2014 declined to $3.9 million from $7.0 million for the same period a year ago. GAAP earnings per share were $0.28 compared to $0.48 during the same period in prior year.

In the fourth quarter of fiscal year 2014, the Company recorded an $8.8 million pre-tax impairment charge while the 2013 fourth quarter was impacted by an impairment charge and a non-recurring special bonus totaling $3.1 million.

Adjusted earnings per share were $0.66 compared to $0.62 during the same period in prior year. Analysts polled by Thomson Reuters expected the company to report earnings of $0.69 per share for the quarter. Analysts' estimates typically exclude special items.

Total Company revenues, which include Company-owned restaurant revenue and franchise royalties, increased 16.6% to $282.1 million in the fourth quarter of 2014 from $241.9 million in the fourth quarter of 2013. Wall Street expected revenues of $283.55 million for the quarter.

Restaurants acquired in 2014 generated $22.9 million of restaurant revenue in the fourth quarter of 2014.

In fiscal year 2015, the Company expects total revenue growth of 12.0% to 13.0% including comparable restaurant revenue growth of 2.0% to 3.0%. The Company plans to open 20 new Red Robin restaurants and five Red Robin Burger Works resulting in operating week growth from new locations of approximately 6%.

Capital investments in fiscal year 2015 are expected to total near $140.0 million. In addition to the new restaurant openings, the Company plans to remodel at least 125 Red Robin restaurants as part of its brand transformation initiative.

Restaurant-level operating profit margins in fiscal year 2015 are expected to approach 21.4%.

RRGB closed Thursday's trading at $77.97. In Friday pre-market trading, the company's shares are down $3.87 or 4.96% to $74.10.