UPDATE: Red Robin Q2 Profit Misses Estimates, Shares Tumble

Shares of Red Robin Gourmet Burgers RRGB dipped more than 23% in pre-market trading after the company reported downbeat second-quarter profit. The Greenwood Village, Colorado-based company posted a quarterly profit of $9.5 million, or $0.65 per share, versus a year-ago profit of $11.1 million, or $0.77 per share. Excluding non-recurring items, Red Robin earned $0.68 per share. Its sales rose 7.5% to $256.1 million from $238.3 million. However, analysts were expecting a profit of $0.90 per share on revenue of $263.37 million. Its same-store sales climbed 1.2% in the quarter. System-wide restaurant revenue rose to $343.0 million, from $323.5 million at constant currency rates. In the quarter, guest counts dropped 2.5%, while average guest check rose 3.7%. Restaurant-level operating profit margins narrowed to 22.2% from 23.3%. As of July 13, 2014, Red Robin had cash and cash equivalents of $60.5 million. Red Robin projects FY14 comparable restaurant revenue to rise in the low single digits. It plans to open 20 new Red Robin restaurants and 4 to 5 Red Robin Burger Works. “Although we are satisfied with our top line performance through the first half of the year, we were disappointed that our marketing efforts in the second quarter did not produce the desired results in an intensely competitive environment,” said Steve Carley, Red Robin Gourmet Burgers, Inc. chief executive officer. Red Robin shares tumbled 23.64% to $49.29 in pre-market trading.