Red Robin Gourmet Burgers Hops On Q3 Earnings Beat

Red Robin Gourmet Burgers, Inc. RRGB opened higher Tuesday after the company posted higher-than-expected third-quarter earnings along with in-line revenue.

The restaurant chain's same-store sales grew 0.9 percent in the recent period. Guest count fell 2.3 percent, offset by a 3.2 percent increase in the average check. The company forecast same-store sales growth for the year ending December 28 of nearly 3 percent and a restaurant-level operating profit margin of 21.3 percent.

The company's recent third-quarter operating margin at the restaurant level was 19.5 percent, compared with 20.4 percent a year earlier.

Net income for the recent third quarter grew to $7.2 million, or $0.50 per share, from $4.7 million, or $0.32 per share a year earlier. Revenue increased 16 percent to $267.4 million from $230.7 million.

Wall Street expected earnings of $0.34 per share on revenue of $267.28 million.

Red Robin traded recently up 11.8 percent at $61.38 per share.