Red Robin Gourmet Burgers Shares Surge On Upbeat Earnings

Shares of

jumped over 11 percent after the company reported stronger-than-expected earnings for the first quarter. The Greenwood Village, Colorado-based company reported a quarterly profit of $16.6 million, or $1.16 per share, versus a year-ago profit of $11.9 million, or $0.82 per share. Excluding items, the company earned $1.10 per share. Its revenue climbed 16 percent to $394.9 million from from $340.5 million. However, analysts were projecting earnings of $0.88 per share on revenue of $395.47 million. The average estimate among 5 Estimize users was for earnings of $0.89 per share and revenue of $394.37 million. System-wide restaurant revenue gained to $488.1 million, from $455.7 million. Comparable restaurant revenue rose 3.1 percent in the quarter. Its customer traffic gained 1.1 percent, while average guest checks rose 2 percent. Restaurant-level operating margin widened to 23.0 percent from 22.4 percent. General and administrative costs increased to $35.0 million from $32.1 million, while selling expenses climbed to $13.1 million from $10.3 million. As of April 19, 2015, Red Robin had cash and cash equivalents of $21.4 million. "Our solid first quarter results are a testament to the excellent performance of our restaurant team members combined with Red Robin's food and beverage innovation," said Steve Carley, Red Robin Gourmet Burgers, Inc. chief executive officer. "Our initiatives are enabling us to continue taking market share including our Brand Transformation remodels which are generating even stronger guest satisfaction scores." For the fiscal year, Red Robin now projects revenue growth of 12 percent to 12.5 percent and comparable restaurant revenue to increase 2.5 percent to 3 percent. Red Robin shares climbed 11.89 percent to $81.62 at 10:30 a.m. ET.