Red Robin 1Q profit down 10 pct but sales grow

Red Robin 1Q profit drops 10 pct on lower traffic, but company sees improving sales trends

Associated Press

GREENWOOD VILLAGE, Colo. (AP) -- Red Robin Gourmet Burgers Inc.'s fiscal first-quarter net income dropped 10 percent, hurt by lower customer traffic.

The company blamed the drop in traffic on a change in the company's financial calendar — this year's quarter ended six days later than in the same period in 2012. Red Robin expects a key sales metric to improve this year, however, and shares rose in midday trading Tuesday.

For the quarter ended April 21, Red Robin earned $9.5 million, or 66 cents per share, down from $10.6 million, or 71 cents per share, in the same quarter the year before. Revenue rose 2 percent, to $306.4 million from $299.5 million.

Analysts, on average, expected a profit of 66 cents per share on $306.7 million in revenue, according to FactSet.

Revenue at restaurants the company has owned itself for at least a year increased 2.2 percent. Customer traffic fell 0.6 percent, but diners spent 2.8 percent more, on average. The metric is a key measure of a retailer's health, because it excludes revenue at stores that recently opened or closed.

For the full year, Red Robin expects revenue at restaurants open at least a year to increase 2.5 percent to 3 percent, partly due to higher prices. The measure rose 1.1 percent last year.

Red Robin shares rose $1.83, or 3.7 percent, to $50.83 Tuesday. The stock had gained 39 percent this year.

View Comments (0)