Red Robin Gourmet Burgers (RRGB) Reports In-Line Q2 EPS; Comps Rose 2.9%

Red Robin Gourmet Burgers (NASDAQ: RRGB) reported Q2 EPS of $0.78, in-line with the analyst estimate of $0.78. Revenue for the quarter came in at $293 million versus the consensus estimate of $297.94 million.

Comparable restaurant revenue increased 2.9 percent.

Outlook for 2015

Red Robin’s 2015 fiscal year consists of 52 weeks and will end on December 27, 2015.

In fiscal year 2015, the Company expects comparable revenue growth of approximately 3.0% and total revenue growth near 12.0%. The Company plans to open 20 new Red Robin restaurants and three to five Red Robin Burger Works resulting in operating week growth, inclusive of 2014 acquisitions, approaching 9.0%.

Capital investments in fiscal year 2015 are expected to be approximately $170 million. In addition to the new restaurant openings, the Company plans to relocate three restaurants and remodel approximately 150 Red Robin restaurants as part of its Brand Transformation Initiative.

Restaurant-level operating profit margin in fiscal year 2015 is expected to approach 22.2%.

General and administrative costs are expected to be between $101 million and $103 million, while selling expenses are expected to be approximately 3.3% of sales. Pre-opening expense is expected to be approximately $7.0 million. Depreciation and amortization is projected to be between $78 million and $79 million.

Interest expense is expected to be approximately $4.0 million while the income tax rate in fiscal year 2015 is expected to be approximately 27.5%.

The sensitivity of the Company’s earnings per diluted share to a 1% change in guest counts for fiscal year 2015 is estimated to be $0.33 on an annualized basis. Additionally, a 10 basis point change in restaurant-level operating profit margin is expected to impact earnings per diluted share by approximately $0.08, and a change of approximately $145,000 in pre-tax income or expense is equivalent to approximately $0.01 per diluted share.

For earnings history and earnings-related data on Red Robin Gourmet Burgers (RRGB) click here.

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