Shares of Red Robin Gourmet Burgers
That's ahead of previous revenue guidance of $90 to $92 million and projected EPS of $0.26 to $0.27. What's behind the "surprise"? Apart from a $250,000 gain on a property sale, Red Robin pointed toward improved margins driven by restaurant operating improvements and a mid-June price increase, as well as reduced workers compensation costs. And the EPS growth appears to be more than just an accounting creation. The company had more shares outstanding at the end of the first quarter than it did at the end of last year's second quarter.
This is a different tune than many restaurants have sung lately. A bullish market for makers of items such as meat, cheese and eggs -- driven largely by a high demand for protein-heavy meals -- has meant trouble for many of their customers. Those restaurant chains uneasy about increasing prices in response, such as the casual steakhousesa laOutback
The sustainability of growing restaurant concepts is always watched closely by investors. If you doubt, look at the recent shock to Back Yard Burgers'
Fool contributor Dave Marino-Nachison doesn't own any of the companies in this story.