On Nov. 2, Red Robin Gourmet Burgers (NASDAQ:RRGB) released third-quarter earnings for the period ended Sept. 30.

  • Same-store sales grew 0.8% due to a 1.4% increase in the average guest check offset by a 0.6% decrease in guest counts.
  • Net profit declined by 7.3% to $6 million, mainly due to an increase in restaurant operating costs and store pre-opening costs.
  • Free cash flow decreased to negative $13 million due to a rise in capital spending partially offset by a rise in the cash from operations.
  • To fund its expansion, Red Robin continues to take on debt, which increased to $103 million at the end of this quarter.

(Figures in millions, except per-share data)

Income Statement Highlights

Avg. Est.

Q3 2006

Q3 2005

Change

Sales

$148

$149

$114

30.1%

Net Profit*

--

$6

$6

(7.3%)

EPS

$0.43

$0.36

$0.39

(7.7%)

Diluted Shares

--

17

17

0.4%

*Net profit does not include income from discontinued operations.

Get back to basics with a look at the income statement.

Margin Checkup

Q3 2006

Q3 2005

Change*

Gross Margin

77.97%

77.83%

0.14

Operating Margin

6.92%

9.11%

(2.19)

Net Margin

4.03%

5.66%

(1.63)

*Expressed in percentage points.

Margins are the earnings engine. See how they work.

Balance Sheet Highlights

Assets

Q3 2006

Q3 2005

Change

Cash + ST Invest.

$4

$3

30.7%

Accounts Rec.

$3

$3

(19.5%)

Inventory

$8

$5

46.2%


Liabilities

Q3 2006

Q3 2005

Change

Accounts Payable

$7

$16

(56.9%)

Long-Term Debt

$103

$14

660.4%



Learn the ways of the balance sheet.

Cash Flow Highlights

YTD 2006

YTD 2005

Change

Cash From Ops.

$60

$52

15.2%

Capital Expenditures

$73

$61

19.5%

Free Cash Flow

($13)

($9)

N/A



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Related Companies:

  • California Pizza Kitchen (NASDAQ:CPKI)
  • IHOP (NYSE:IHP)
  • Steak n Shake (NYSE:SNS)

Related Foolishness:

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