GREENWOOD VILLAGE Colo. In a departure from the grim news coming out of casual dining, Red Robin Gourmet Burgers, Inc. said Wednesday that it was raising its earning guidance for 2007 after notching a 2.7-percent year-over-year increase in same-store sales for the fourth quarter.
During the 12-week quarter ended Dec. 30, guest traffic declined 1.5 percent at company units, but was offset by a 4.2-percent rise in the average check, the company said. For the fourth quarter of fiscal 2006, Red Robin posted a 0.2-percent uptick in same-store sales, with check increases negating a 3 percent drop in customer counts.
Comparable-store sales for fiscal 2007 increased 2.4 percent.
Red Robin operates 250 restaurants and franchises another 134 branches. Many of the units are located in shopping malls.
Preliminary unaudited revenues for the full year ending Dec. 30 were $763.4 million, a 23.4-percent increase from the prior year’s tally, the company said. It raised its earnings guidance for 2007 to $1.74 to $1.78 per share. It had earlier stated expectations of $1.70 to $1.74 per share.
During 2007, the company opened 26 corporate restaurants, and franchisees opened an additional 14 stores.
The chain, based here, expects to open between 30 and 33 restaurants in 2008. Franchise operators are expected to open between 11 and 13 new stores.