Red Robin Stock Higher as Burger Chain Swings to Second-Quarter Profit

Red Robin Restaurant

Red Robin Gourmet Burgers (RRGB - Get Report) shares jumped more than 5% Friday after the burger chain reported a fiscal-second-quarter adjusted-earnings-and-revenue beat. 

For the period ended July 14 the Greenwood Village, Colo., operator of more than 560 outlets swung to net income of 8 cents a share from a net loss of 14 cents in the year-earlier quarter. 

On an adjusted basis, earnings were $1.03 a share against 46 cents.

Revenue slipped 2.3% to $308 million. Comparable-restaurant revenue slipped 0.1%; the figure was off 1.5% in constant currencies. 

Analysts surveyed by FactSet were expecting the company to report earnings of 31 cents a share on revenue of $306.4 million.

"Importantly, we are encouraged to see early signs of our recent sales momentum continuing, which reflect our ongoing improvements in operating and guest satisfaction metrics, as well as the new omnichannel advertising campaign that launched July 15th," interim CEO Pattye Moore said in a statement. 

The company reiterated its full-year adjusted-earnings estimates of 95 cents to $1.50 a share compared with analyst estimates of $1.14. 

The stock was trading up 5.2% at $34.67. It traded as high as $35.40, up 7.4%.

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