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Red Robin's income inches higher despite spike in costs

GREENWOOD VILLAGE, Colo. Red Robin Gourmet Burgers Inc. recorded a slight uptick in net income for the first quarter as a revenue gain of 25.4 percent to $212.3 million trumped a 25.8-percent spike in total costs and expenses.

The company also said it received commitments for a new $300 million credit facility that provides more favorable borrowing rates and will fund share repurchases, restaurant construction, franchise acquisitions and working capital. The new facility, from a syndicate of banks led by Wachovia Capital Markets LLC, will replace Red Robin’s existing $200 million credit agreement. The new arrangement is comprised of a $150 million term loan and a $150 million revolving line of credit.

For the first quarter ended April 22, net income totaled $7.5 million, up from profit of $7.4 million in the year-ago first quarter. Per-share earnings totaled 44 cents per share for both quarters. 

Same-store sales decreased 0.5 percent at corporate restaurants in the first quarter, which reflected a 3.1-percent increase in the average check and a 3.6-percent drop in guest counts.

Red Robin operates or franchises 363 namesake casual-dining restaurants.

TAGS: Finance
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