Red Robin Gourmet Q1 Profit Beats View, Lowers 2015 Revenue Growth Outlook

(RTTNews) - Red Robin Gourmet Burgers Inc. (RRGB) reported that its net income for the first quarter increased to $16.57 million or $1.16 per share from $11.94 million or $0.82 per share in the same period of the prior year.

The latest quarter's results include an after-tax adjustment for a change in accounting estimate for gift card breakage of $0.9 million or $0.06 per share.

Adjusted earnings for the quarter were $1.10 per share, compared to $0.82 per share in the previous-year quarter. On average, analysts polled by Thomson Reuters expected the company to report earnings of $0.88 per share for the quarter. Analysts' estimates typically exclude special items.

Revenues for the quarter, which include company-owned restaurant revenue and franchise royalties, increased 16 percent to $394.9 million from $340.5 million in the year-ago period. Wall Street expected revenues of $395.47 million for the quarter.

Comparable restaurant revenue for the quarter increased 3.1 percent over the same period a year ago.

Looking ahead to fiscal year 2015, Red Robin now forecasts total revenue growth of 12.0 percent to 12.5 percent, including comparable restaurant revenue growth of 2.5 percent to 3.0 percent.

Earlier, the company forecast total revenue growth of 12.0 percent to 13.0 percent, including comparable restaurant revenue growth of 2.0 percent to 3.0 percent. Analysts currently expect revenue growth of 12.6 percent to $1.29 billion.

Additionally, the company plans to open 20 new Red Robin restaurants and five Red Robin Burger Works resulting in operating week growth, inclusive of 2014 acquisitions, of approximately 9.5 percent.