Red Robin Gourmet Burgers (NASDAQ: RRGB) looks for decent action on its stock Wednesday, after exciting first-quarter results. The restaurant chain reported Q1 EPS of $0.89, or $0.32 better than the analyst estimate of $0.57. Revenue for the quarter came in at $418.6 million versus the consensus estimate of $416.25 million. Net income was $11.6 million compared to $14.2 million.
Red Robin CEO Denny Marie Post pointed to several factors behind this growth “During the first quarter, our everyday value Tavern Double burger menu continued to drive traffic, our teams delivered on improved speed of service, and our recent investments in the growing off-premise use began to gain traction. The early success of these and other initiatives gives us confidence that we are laying the groundwork for improved performance for the balance of the year and beyond.”
Comparable restaurant revenue decreased 1.2% in the first quarter of 2017 compared to the same period a year ago, driven by a 1.7% decrease in guest counts, partially offset by a 0.5% increase in average guest check. The increase in average guest check comprised a 1.6% increase in pricing and a 1.1% decrease in menu mix.
During the first quarter of 2017, the company opened six Red Robin restaurants, including one restaurant that had been temporarily closed during 2016, and relocated one Red Robin restaurant. The company’s franchisees opened one restaurant during the first quarter of 2017.
The stock sizzled in the opening minutes of Wednesday’s trading day, leaping $10.73 per share, or 18.5%, to $68.73.
