Red Robin Gourmet Burgers (NASDAQ: RRGB) reported Q3 EPS of $0.16, $0.05 better than the analyst estimate of $0.11. Revenue for the quarter came in at $294.9 million versus the consensus estimate of $304.54 million.

• GAAP earnings per diluted share were $0.13 compared to $0.21;
• Adjusted earnings per diluted share were $0.16 compared to $0.21 (see Schedule I);
• Total revenues were $294.9 million, a decrease of 3.5%;
• Off-premise sales increased 22.7%, now comprising 10.1% of total food and beverage sales;
• Comparable restaurant revenue decreased 3.4% (using constant currency rates);
• Comparable restaurant guest counts decreased 1.9%;
• Cost of sales as a percentage of revenue remained flat at 23.8%; and
• Restaurant labor costs as a percentage of restaurant revenue remained flat at 35.3%.

“We are pleased with our continued improvement in managing labor and food costs, fundamental to achieving sustainable profit growth when we regain top-line sales momentum. Our third quarter sales performance was the result of a decline in dine-in traffic, which we expected when we chose mid quarter to shift remaining media weight to later in the year,” said Denny Marie Post, Red Robin Gourmet Burgers, Inc. chief executive officer. “We took the last part of the third quarter to begin retraining all of our restaurant teams on peak-hour service standards based on our success in pilot locations. We believe this will ensure our restaurant teams are well-prepared for seasonally higher volume in the fourth quarter and we are encouraged that we are already seeing improvements in ticket and wait times.”

GUIDANCE:

Red Robin Gourmet Burgers sees FY2018 EPS of $1.60-$1.80, versus the consensus of $1.90.

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