Red Robin Gourmet Burgers Inc. reported Tuesday a nearly 39-percent increase in net income for the first quarter ended April 19, saying brand enhancement efforts are growing the chain’s market share.
“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, CEO of Red Robin Gourmet Burgers Inc. “Our initiatives are enabling us to continue taking market share, including our brand transformation remodels, which are generating even stronger guest satisfaction scores.”
Net income for the quarter was $16.6 million, or $1.16 per share, a 38.7-percent increase from $11.9 million, or 82 cents per share, a year ago.
Revenue rose 16 percent, to $394.9 million, compared with $340.5 million a year ago. Including franchise locations, systemwide revenue totaled $488.1 million, compared with $455.7 million a year ago, at constant currency rates, the company said.
Same-store sales climbed 3.1 percent, including a 1.1-percent rise in guest counts and a 2-percent increase in average check.
Red Robin is reworking its restaurants with a new, contemporary design that moves away from the noisy bars of its past to create an atmosphere more welcoming to a broader audience. Additionally, the chain introduced a new kids’ menu earlier this month.
During the quarter, 18 restaurants were remodeled, with a total of 122 units now sporting the new brand standard.
For the fiscal year, Red Robin projected revenue to increase 12 percent to 12.5 percent, including same-store sales growth of between 2.5 percent and 3 percent.
The company expects to open 20 Red Robin restaurants and five fast-casual Burger Works locations in 2015.
Red Robin ended the quarter with 408 company-owned locations, 10 Red Robin Burger Works restaurants, and 99 franchised units, for a total of 517 restaurants.
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