Red Robin shares fly higher after better than expected results

Red Robin Gourmet Burgers Inc (NASDAQ:RRGB) shares rose over 6% on Friday after the company reported better than expected fourth quarter results after-hours on Thursday.

The burger chain posted net income of US$8.8mln for the fourth-quarter of 2017, compared to a net loss of US$8.8mln a year earlier, as total revenues increased by 17.5% to US$342.4mln mainly boosted by the opening of new restaurants.

READ: Red Robin is a tasty growth story, reckons Jefferies

During the fourth quarter, the company opened two new Red Robin restaurants, bringing the total restaurant openings for the year to 18.

The company reported a 2.7% increase in comparable restaurant revenue, driven by a 1.9% increase in customers and a 0.8% increase in average guest check.

For the full-year, Red Robin reported net income of US$30mln, up from US$11.7mln in 2016, as total revenues rose by 6.5% to US$1.4bn. 

Denny Marie Post, Red Robin’s chief executive officer, said: “We outperformed the casual dining industry on Guest traffic for the sixth consecutive quarter and ended 2017 with positive same-store sales.”

In the early trading, Red Robin’s shares were up 6.8% at US$58.65.

Story by ProactiveInvestors