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Red Robin Gourmet Burgers – Strong fourth quarter 2011 performance

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Red Robin Gourmet Burgers, Inc., (NASDAQ: RRGB), a casual dining restaurant chain focused on serving an innovative selection of highquality gourmet burgers in a family-friendly atmosphere, today reported financial results for the 12 and 52 weeks ended December 25, 2011.

Financial and Operational Results

During the Company’s fiscal fourth quarter 2011:


  • Adjusted earnings per diluted share were $0.28 compared to $0.13 a year ago; GAAP earnings per diluted share were $0.20 compared to $0.14 in the fiscal fourth quarter 2010
  • Company-owned comparable restaurant gross sales increased 4.8%
  • Restaurant-level operating profit margin increased to 19.9% from 17.0%
  • The Company opened four new company-owned Red Robin® restaurants, including its first Red Robin’s Burger Works™ and one new franchised Red Robin® restaurant

Adjusted net income for the 12 weeks ended December 25, 2011, was $4.1 million compared to $2.0 million earned for the comparable period in fiscal 2010. Adjusted net income excludes $1.2 million of expense and $0.4 million of income in the fiscal fourth quarter 2011 and 2010, respectively, related to asset impairments, restaurant closing and executive transition costs net of taxes as detailed in Schedule I below. GAAP net income during the fiscal fourth quarter 2011 was $2.9 million compared to $2.2 million during the comparable period in fiscal 2010.

For the 52 weeks ended December 25, 2011, the Company reported adjusted earnings per diluted share of $1.58 compared to $0.71 in fiscal 2010. Adjusted net income in fiscal 2011 was $24.3 million compared to $11.1 million in 2010 as detailed in Schedule I. GAAP earnings per diluted share for fiscal 2011 amounted to $1.34 compared to $0.46 in 2010. GAAP net income in fiscal 2011 and 2010 was $20.6 million and $7.3 million, respectively.

“Our strong fourth quarter 2011 performance reflects the sales growth we realized from a sequential improvement in guest count trends, accentuating value with the continued success of our limited time offerings and execution of happy hour and other revenue-driving initiatives,” said Steve Carley, Red Robin Gourmet Burgers, Inc. Chief Executive Officer. “In addition, despite continued pressure from commodity inflation, our team members were able to capture substantial net cost savings, which resulted in significantly higher profits in the fourth quarter. The targeted reduction in restaurant costs we announced in early 2011 with Project Red are being realized more quickly than we anticipated.”

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edliston
Post Written By: Ed Liston

Ed Liston is a senior contributing editor at TheStockMarketWatch.com. An active market watcher and investor, Ed guides an independent team of experienced analysts and writes for multiple stock trader publications. He is widely quoted in various financial publications on the Internet. When Ed is not writing about stocks, investing in stocks, talking about stocks, or otherwise doing something stock related, he likes to go sailing and fishing in his yacht.


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Ed Liston

Ed Liston is a senior contributing editor at TheStockMarketWatch.com. An active market watcher and investor, Ed guides an independent team of experienced analysts and writes for multiple stock trader publications. He is widely quoted in various financial publications on the Internet. When Ed is not writing about stocks, investing in stocks, talking about stocks, or otherwise doing something stock related, he likes to go sailing and fishing.

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