Restaurant chain Red Robin Gourmet Burgers Inc. (RRGB), Tuesday reported a drop in first-quarter profit, as a growth in revenues were offset by increased costs and lower customer traffic.
Greenwood Village, Colorado-based Red Robin's profit for the first quarter dropped to $9.5 million or $0.66 per share from $10.6 million or $0.71 per share last year. On average, 15 analysts polled by Thomson Reuters expected earnings of $0.66 per share for the quarter. Analysts' estimates typically exclude special items.
Red Robin's revenues grew 2.3 percent to $306.3 million from $299.5 million a year ago. Analysts expected revenues of $306.36 million for the quarter. Company-owned comparable restaurant revenues increased 2.2 percent from same period last year.
Steve Carley, Red Robin Gourmet Burgers, Chief Executive Officer observed, "Seasonality shifts from changes in our reporting period and media timing had a negative impact on our guest traffic and earnings in the first quarter this year..."
Total costs and expenses for the quarter increased to $292.8 million from $283.7 million last year, driven mainly by increases in labor and general and administrative expenses. Red Robin, like most other restaurants, has been hurt by commodity price increases and weak economy.
Restaurant-level operating profit margin increased to 21.5 percent from 21.2 percent a year ago.
In the first quarter, guest counts decreased 0.6 percent on a comparable basis while average guest check increased 2.8 percent.
Looking forward to the 2013, the company expects comparable restaurant sales growth of 2.5 to 3.0 percent.
RRGB is currently trading at $51.07, up $2.06 or 4.20%, on the Nasdaq.
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