Red Robin Gourmet Burgers
Red Robin's revenues soared higher by 22.6% to $143.1 million. Comparable restaurant sales from company-owned units were up 5.7%, and franchise-owned units saw comparable sales increase 7.2% in the United States. Shareholders certainly have to like the sight of these numbers.
The company's improvement in operating margins was also impressive. Operating income for the quarter was $13 million, with margins of 9.4%. This compares favorably to operating profit margins of 7.2% from the year-ago period. A 30.6% betterment to this metric might just get investors singing.
Because of Red Robin's healthy revenue growth and strong profit margins, its net income shot up to $8 million, compared to $4.9 million from a year ago, and earnings per share grew 60% to $0.48.
The company now expects to earn in a range of $1.76 to $1.78 per share on revenues of approximately $498 million for the year. If Red Robin can meet these expectations, its stock will trade at a price-to-earnings ratio of 29. On the surface, this bird doesn't sound cheap, but when you consider its revenue and earnings growth, as well as its improving margins, it doesn't appear terribly expensive either.
Burger eaters looking for a casual dining atmosphere have plenty to choose from. From Friendly Ice Cream
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