Red Robin Gourmet Burgers Posts Lower 1Q Profit

GREENWOOD VILLAGE, Colo. (AP) — Casual dining chain Red Robin Gourmet Burgers Inc. said Thursday its first-quarter earnings dropped 47 percent because of charges and a decline in sales at restaurants open at least a year. Although adjusted profit beat Wall Street expectations, a weak outlook sent shares tumbling after-hours.

Profit for the 16 weeks ended April 19 declined to $3.8 million, or 25 cents per share, from $7.3 million, or 43 cents per share, last year.

Results in the most recent quarter included 19 cents in compensation expenses related to the company's tender offer for stock options and 3 cents to close four company-owned restaurants. Excluding these one-time charges, earnings totaled 47 cents per share in the latest period.

Sales rose 6 percent to $270.8 million from $255.6 million. Same-store restaurant sales declined 8.1 percent for company-owned restaurants in the first quarter, as a drop in customer traffic offset a slight increase in the amount the average guest spent.

Analysts polled by Thomson Reuters, who usually exclude one-time items from their estimates, expected earnings of 34 cents per share and slightly higher revenue of $274.2 million.