GREENWOOD VILLAGE, Colo. (
) -- Shares of
Red Robin Gourmet Burgers
traded lower on high volume Friday after the fast-casual restaurant posted weaker quarterly profits and reduced its outlook.
Nearly 470,000 Red Robin shares changed hands halfway through the day's session compared with their trailing 30-day average volume of just 315,000. The higher-than-normal volume wasn't exactly beneficial to Red Robin; the stock traded down 5% to $18.68.
Red Robin said comparable same-store sales, or sales at stores open at least one year, fell 1.2% in its fiscal second quarter, due to a 2.1% drop in average guest check, partially offset by a 0.9% uptick in guest counts. The figure was a marked improvement from year-earlier comps declines of 11.5%. U.S.-based comps fell 2% while stores in Canada grew comps by 0.8%.
A roster of fast casual restaurants also reported quarterly results recently, offering up a mixed bag of same-store sales results. Chili's operator
, including a 4.1% decrease at Chili's and a 1.3% increase at Maggiano's Little Italy restaurants.
Chipotle Mexican Grill
reported an 8.7% jump in year-over-year comps.
Buffalo Wild Wings
said last month its
at company-owned restaurants last quarter, and 0.7% at franchised locations, though the decline managed to top expectations.
The Cheesecake Factory
grew comps 1.6% last quarter at its namesake restaurants.
Red Robin said total revenue in the 12 weeks ended July 11 edged up 0.1% to $201.3 million. Profits fell 32.8% to $4.2 million, or 28 cents per share, however, compared with year-earlier earnings of $6.4 million, or 41 cents per share.
Both top- and bottom-line figures missed analysts' consensus call earnings of $5.8 million, or 36 cents per share, on revenue of $207.6 million.
Weak results were attributed to soft sales at Red Robin's California and Arizona locations where 25% of the company's restaurants are located. Those two states have been consistently plagued by higher-than-average unemployment rates.
The Colorado-based company reduced its forecast for fiscal 2010 revenue to a range between $866 million and $873 million, down from its previous forecast for sales in a range between $872 million and $880 million. Analysts expect full year revenue of $871.4 million.
Earnings guidance was also revised downward to a range between 90 cents and $1.10 per share, from its prior estimate of $1.10 to $1.30 earnings per share. Analysts expect 94 cents per share.
Comps will be between negative 0.5% and positive 0.5% for the year, Red Robin said. The chain plans to step up its national ad campaign and open 11 new company-owned restaurants and 4 to 5 franchised restaurants.
Separately, Red Robin also said Friday CEO Dennis Mullen will be replaced by Stephen Carley, a former chief executive of
El Pollo Loco
, effective September 13.
Red Robin Gourmet Burger's Stock Rating Report (RRGB) Rating and Financial Analysis
-- Reported by Miriam Marcus Reimer from New York.
Follow Miriam Marcus Reimer on
and become a fan of TheStreet on
Get more stock ideas and investing advice on our sister site,
Disclosure: TheStreet's editorial policy prohibits staff editors and reporters from holding positions in any individual stocks.