NEW YORK (TheStreet) -- Shares of Red Robin Gourmet Burgers Inc. (RRGB) are declining by -19.89% to $51.71 at the start of trading on Thursday, after the company reported a drop in net income for the 2014 second quarter to $9.5 million, or 65 cents per diluted share, compared to $11.1 million, or 77 cents per diluted share for the same quarter last year.
The casual dining restaurant chain said adjusted earnings fell to 68 cents per diluted share for the most recent quarter, from 77 cents per diluted share for the 2013 second quarter.
The FactSet consensus estimated 90 cents per share for the quarter.
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However, Red Robin posted a 7.5% increase in sales this past quarter to $256.1 million, compared to $238.3 million for the year ago period.
Revenue topped analysts’ expectations of $236.5 million, for the quarter.
TheStreet Ratings team rates RED ROBIN GOURMET BURGERS as a Buy with a ratings score of A-. TheStreet Ratings Team has this to say about their recommendation:
"We rate RED ROBIN GOURMET BURGERS (RRGB) a BUY. This is based on the convergence of positive investment measures, which should help this stock outperform the majority of stocks that we rate. The company's strengths can be seen in multiple areas, such as its revenue growth, solid stock price performance, impressive record of earnings per share growth, compelling growth in net income and reasonable valuation levels. We feel these strengths outweigh the fact that the company shows low profit margins."