Red Robin Gourmet Burgers (NASDAQ: RRGB) reported Q2 EPS of $0.61, $0.09 better than the analyst estimate of $0.52. Revenue for the quarter came in at $315.8 million versus the consensus estimate of $315.66 million.

Outlook for 2017

• Earnings per diluted share is projected to range from $0.20 to $0.30 for the third quarter and will approximate the low end of the $2.80 to $3.10 guidance for full-year 2017.
• Cost of sales, as a percentage of restaurant revenue, is projected to be in the range of down 25 basis points to up 25 basis points versus 2016 due to the impact of higher beef and potato prices in the second half of the year.
• Restaurant labor costs, as a percentage of restaurant revenue, are projected to range from flat to an increase of 50 basis points compared to 2016, driven by minimum wage increases in more highly penetrated markets, higher benefit costs and restaurant manager bonuses, partially offset by the effect of pricing and improvements in labor productivity.
• General and administrative expense is expected to be slightly less than the Company’s original estimate of $100 million.
• Tax rate is projected to be in the range of 15% to 20%.

GUIDANCE:

Red Robin Gourmet Burgers sees FY2017 EPS of $2.80-$3.10, versus the consensus of $2.93.

Second Quarter 2017 Financial Highlights Compared to Second Quarter 2016

• Total revenues were $315.8 million, an increase of 3.3%;
• Net income was $6.9 million compared to $7.6 million;
• Comparable restaurant revenue increased 0.5% (using constant currency rates);
• Comparable restaurant guest counts increased 1.0%;
• Adjusted EBITDA was $32.3 million compared to $33.5 million (see Schedule III);
• GAAP earnings per diluted share were $0.53 compared to $0.55; and
• Adjusted earnings per diluted share were $0.61 compared to $0.75 (see Schedule I).

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