Red Robin Gourmet Burgers Q2 net income down to $7.6 million
Staff Writer |
Red Robin Gourmet Burgers reported financial results for the second quarter ended July 10, 2016. Total revenues were $305.5 million, an increase of 4.3%.
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Net income was $7.6 million compared to $11.2 million for the same period a year ago.
Earnings per diluted share were $0.55 compared to $0.78 in second quarter 2015. Year to date net income for the twenty-eight weeks ended July 10, 2016, was $21.8 million compared to $27.7 million for the same period a year ago.
Year to date earnings per diluted share for the twenty-eight weeks ended July 10, 2016, were $1.59 compared to $1.94 a year ago.
Excluding the impact of a charge of $0.20 per diluted share for restaurant impairment, adjusted earnings per diluted share for the second quarter ended July 10, 2016, were $0.75 compared to $0.78 for the same period a year ago.
Year to date adjusted net income for the twenty-eight weeks ended July 10, 2016, was $27.9 million, an increase of 3.9% from $26.8 million for the same period a year ago.
otal Company revenues, which primarily include Company-owned restaurant revenue and franchise royalties, increased 4.3% to $305.5 million in the second quarter of 2016 from $293.0 million in the second quarter of 2015.
Restaurant revenues increased $23.7 million due to new restaurant openings and acquired restaurants, partially offset by a $9.5 million, or 3.4%, decrease in comparable restaurant revenue, which included a $0.5 million, or 0.2%, unfavorable foreign exchange impact, and $0.8 million from closed restaurants.
Franchise and other revenue decreased $0.8 million, primarily driven by a decrease the number of franchisees from the same period a year ago.
System-wide restaurant revenue (including franchised units) for the second quarter of 2016 totaled $366.0 million, compared to $363.2 million for the second quarter in 2015.
Using constant currency rates, comparable revenue decreased 3.2% in the second quarter of 2016 compared to the same period a year ago, driven by a 3.9% decrease in guest counts, which was partially offset by a 0.7% increase 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.
Restaurant-level operating profit margin (a non-GAAP financial measure) was 20.9% in the second quarter of 2016 compared to 22.5% in the same period a year ago.
The 160 basis point margin decrease in the second quarter of 2016 resulted from a 160 basis point increase in labor costs, a 110 basis point increase in other restaurant operating expenses, and a 30 basis point increase in occupancy costs, partially offset by a 140 basis point decrease in cost of sales. ■