Burgers bring results for Red Robin
Nov. 3, 2015
by Erica Shaffer
Q3 earnings advanced at Red Robin as a result of customers "enjoying more of what we have to offer," CEO Steve Carley said.
GREENWOOD VILLAGE, Colo. – Customer appreciation for Red Robin Gourmet Burgers Inc. is showing in the company’s earnings. For the 12 weeks ended Oct. 4, the company reported net income of $8.3 million, a 14 percent increase from $7.2 million reported a year ago. Revenues advanced 6 percent to $283.4 million.
|Steve Carley, CEO of Red Robin Gourmet Burgers
“Our guests continue to react favorably to our restaurant upgrades and our menu innovation, both of which are critical in this increasingly competitive environment,” said CEO Steve Carley. “Our third quarter sales increase is the direct result of guests enjoying more of what we have to offer.”
Earnings per diluted share increased 16 percent to 58 cents compared to 50 cents. EBITDA for the quarter climbed 22.1 percent to $31.2 million from $25.6 million in the year-ago period.
Red Robin reported 418 company-owned restaurants, 10 Red Robin Burger Works and 99 franchised Red Robin restaurants for a total of 527 restaurants. During the third quarter, Red Robin opened five new restaurants, relocated three restaurants and acquired one franchised restaurant.
The company has undertaken a brand transformation initiative in which 53 restaurants were remodeled during the third quarter. The company plans to remodel 150 this year. Red Robin expects to have more than 300 restaurants conforming to the new brand standards by year’s end, including new restaurant openings.
The company’s outlook for fiscal 2015 includes comparable revenue growth of approximately 2.5 percent and total revenue growth near 11 percent. Red Robin plans to open 20 new restaurants and three Red Robin Burger Works in fiscal year 2015 resulting in operating week growth, inclusive of 2014 acquisitions, approaching 8.5 percent.
Capital investments for the fiscal year are forecast at approximately $170 million, which includes opening new restaurants and restaurant remodels as part of the company’s brand transformation initiative.