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GREENWOOD VILLAGE, Colo., October 18, 2019 – Shares of Red Robin Gourmet Burgers Inc. (NASDAQ: RRGB) gained 0.70% to $31.73. The stock traded total volume of 145.862K shares lower than the average volume of 313.53K shares.
Red Robin Gourmet Burgers, Inc., (RRGB) reported net income of $0.60M for the first quarter of 2019 compared to $4.40M for the same period a year ago. Adjusted net income was $2.40M for the first quarter of 2019 compared to $9.10M for the same period a year ago.
First Quarter 2019 Operating Results:
Total revenues, which primarily include Company-owned restaurant revenue and franchise royalties, decreased 2.8% to $409.90M in the first quarter of 2019 from $421.50M in the first quarter of 2018. Restaurant revenue decreased $14.20M due to a $13.50M, or 3.3%, decrease in comparable restaurant revenue, a $2.20M decrease from closed restaurants, and a $0.60M unfavorable foreign currency exchange impact, offset by a $2.10M increase in revenue from new restaurant openings.
System-wide restaurant revenue (which includes franchised units) for the first quarter of 2019 totaled $483.70M, compared to $498.00M for the first quarter of 2018. Comparable restaurant revenue decreased 3.3% in the first quarter of 2019 compared to the same period a year ago, driven by a 5.5% decrease in guest counts offset by a 2.2% increase in average guest check. The increase in average guest check was comprised of a 0.3% increase in menu mix and a 1.9% increase in pricing.
Depreciation and amortization costs decreased to $28.40M in the first quarter of 2019 from $29.20M in the first quarter of 2018.
General and administrative costs were $30.10M, or 7.3% of total revenues, in the first quarter of 2019, compared to $28.60M, or 6.8% of total revenues in the same period a year ago. The increase was primarily driven by increases in professional services, travel expenses related to manager training, and salaries, offset by lower incentive and equity compensation.
Selling expenses were $18.00M, or 4.4% of total revenues, in the first quarter of 2019, compared to $17.70M, or 4.2% of total revenues, during the same period in the prior year.
Other charges in the first quarter of 2019 included $2.00M in executive transition and severance, $0.30M in costs related to restaurants that were previously closed, and $0.10M in executive retention.
Balance Sheet and Liquidity:
As of April 21, 2019, the Company had cash and cash equivalents of $23.00M and total debt of $183.40M. The Company funded capital expenditures with cash flow from operations and made net repayments of $10.00M on its credit facility during the first quarter of 2019. As of April 21, 2019, the Company had outstanding borrowings under its credit facility of $182.50M, in addition to amounts issued under letters of credit of $7.40M, which reduce the amount available under its credit facility but are not recorded as debt.
RRGB has the market capitalization of $411.54M and its EPS growth ratio for the past five years was -17.30%. The return on assets ratio of the Company was -0.70% while its return on investment ratio stands at 0.80%. Price to sales ratio was 0.31.