Red Robin Gourmet Burgers, Inc. reported financial results for the quarter ended October 2.
Third Quarter 2016 Financial Highlights Compared to Third Quarter 2015
Total revenues were $297.3 million, an increase of 4.9 percent.
Comparable restaurant revenue decreased 3.6 percent.
Restaurant-level operating profit margin was 18.6 percent compared to 21.6 percent.
“The investments we are making in Everyday Value and improved service are already having a positive impact on our performance versus the competition,” says Denny Marie Post, Red Robin Gourmet Burgers, Inc. chief executive officer. “We have made significant gains in traffic and guest satisfaction. We look forward to sharing more about these outcomes, as well as our new direction on capital deployment, specifically a significant reduction in planned new unit development.”
Operating Results
Total company revenues, which primarily include company-owned restaurant revenue and franchise royalties, increased 4.9 percent to $297.3 million in the third quarter of 2016 from $283.4 million in the third quarter of 2015. Restaurant revenues increased $25.2 million due to new restaurant openings and acquired restaurants, partially offset by a $9.8 million, or 3.6 percent, decrease in comparable restaurant revenue and $1 million from closed restaurants. Franchise and other revenue decreased $0.5 million, primarily driven by a decrease in the number of franchisees from the same period a year ago.
System-wide restaurant revenue (including franchised units) for the third quarter of 2016 totaled $355.5 million, compared to $350.6 million for the third quarter in 2015.
Comparable restaurant revenue decreased 3.6 percent in the third quarter of 2016 compared to the same period a year ago, driven by a 2.4 percent decrease in guest counts and a 1.2 percent decrease in average guest check. Comparable restaurants are those company-owned restaurants that have operated five full quarters during the period presented, and such restaurants are only included in the comparable metrics if they are comparable for the entirety of both periods presented.
