Red Robin Gourmet Burgers Inc.’s net income rose 53 percent during the third quarter ended Oct. 5, the company reported Tuesday, signaling a regain in momentum.
The results included a $400,000, or 3 cent per share, after tax acquisition cost related to the purchase of 32 franchised restaurants for $40 million. The quarter also included a $500,000, or 4 cents per share, impact from a tax credit.
Revenue rose nearly 16 percent during the quarter on same-store sales that increased 0.9 percent, largely due to a 3.2-percent increase in average check.
The Greenwood Village, Colo.-based casual-dining operator said guest counts declined 2.3 percent overall during the quarter, but traffic turned positive during the last four weeks following the return of TV ads promoting Red Robin’s value-positioned Tavern Double burgers, as well as its premium Finest Burger line, with burgers featuring a half-pound patty of Angus beef.
This week Red Robin rolled out a new Big Sky Finest Burger, with bacon, onion rings, a drizzle of Sriracha, goat cheese crumbles, arugula and roasted garlic aioli, served on a toasted ciabatta bun. The item was a Best of the Bash winner at the 2014 South Beach Wine & Food Festival.
The chain also introduced a new limited-time dessert called Doh! Rings, described as a cross between croissants and doughnuts, that are “curiously similar to, but per our lawyers, cannot be called, a Cronut,” said Denny Post, Red Robin’s senior vice president and chief marketing officer.
Red Robin expects to see same-store sales growth of 3 percent for the year.
Red Robin ended the quarter with 402 company-owned restaurants and 98 franchised locations, as well as seven fast-casual Burger Works units.
3Q NET INCOME
Result: $7.2 million, or 50 cents per share% Increase: 53%(from $4.6 million, or 32 cents per share)
3Q REVENUE
Result: $267.4 million% Increase: 16% (from $230.7 million)
3Q SAME-STORE SALES
% Increase corporate: 0.9%Source: Company report
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