Red Robin Posts 19 Percent Drop In 2nd-qtr Profit

GREENWOOD VILLAGE, Colo. (AP) — Casual dining chain Red Robin Gourmet Burgers Inc. on Thursday said its second-quarter profit fell 19 percent as consumers continued to conserve their dollars amid the recession.

For the three months ended July 12, Red Robin said net income fell to $6.4 million, or 41 cents per share, from $7.9 million, or 49 cents per share, in the comparable quarter last year. The year-ago figure included a 3-cent-per-share charge related to reacquired franchises.

Revenue fell 3 percent to $201.1 million from $206.4 million last year.

Analysts polled by Thomson Reuters, on average, expected profit of 37 cents per share, on revenue of $206.1 million.

Same-store sales, or sales at company-owned restaurants open at least a year, fell 11.5 percent. At U.S. franchise restaurants, same-store sales fell 10.3 percent.

Same-store sales is an important measure of restaurant health because it measures growth at existing locations, rather than from expansion. Red Robin added seven new restaurants, six of which are company owned, during the quarter.