Restaurant chain

Red Robin Gourmet Burgers

(RRGB) - Get Report

cut its fourth-quarter estimates, saying same-store sales were weaker than expected.

The Greenwood Village, Colo., company expects to report revenue of $116.5 million, an increase of around 19% from last year, but lower than its prior guidance of $118 million to $119.5 million. Earnings will be 29 cents to 32 cents a share, well below its expectation of 40 cents to 41 cents.

Analysts surveyed by Thomson First Call are looking for a profit of 41 cents and a top line of $118.5 million.

The miss wasn't going over well with investors, and shares of Red Robin were sinking in premarket trading. Lately, they were down $9.45, or 18.2%, to $42.53.

Comparable-store sales rose 2.7% in the fourth quarter, falling short of the company's forecast of a 3% to 4% increase. In addition, some restaurants outside of the comparable base did worse than anticipated. To keep its operating margins up, the company plans to boost prices by roughly 1% by the end of the first quarter.

For fiscal 2005, Red Robin sees revenue of $486 million, compared with its previous view of $487.5 million to $489 million. The company's fiscal 2005 earnings should be around $1.60 to $1.63, vs. its target of $1.71 to $1.73.

Red Robin is scheduled to report its financial results for the fourth quarter and fiscal 2005 on Feb. 16.