Red Robin Cuts Growth in Half

GREENWOOD VILLAGE, CO-Red Robin Gourmet Burgers is slowing growth for 2009, executives said at the company’s fourth quarter conference call.

During fiscal year 2009, the Company now expects to open 13 to 14 new company-owned units, and franchisees are expected to open seven to eight new restaurants. Last year, 31 company-owned and 10 franchised locations were opened. Plans for 2010 have yet to be determined, but consolidation and acquisition opportunities in the coming year could range from conversions of former restaurants and shopping center end-caps to freestanding restaurants.

“We expect to have many options available to us,” said Dennis Mullen, chairman and chief executive officer.

On the positive side, however, the company does not plan any store closures this year beyond the four units already announced.

“We’ll continue to evaluate [stores, but we don’t any decisions beyond the four,” said Katie Scherping, chief financial officer and senior vice president

For the quarter, total revenues were $198.6 million, up 8% from the same period the year before. Company-owned comparable restaurant sales decreased 7.4%. Net income was $5.8 million, compared with net income of $10.1 million in the fiscal fourth quarter of 2007.

For the year, total revenues were $869.2 million, up 13.9% from 2007. Company-owned comparable restaurant sales dropped 1.4%. Net income was $27.1 million, compared with net income of $30.7 million in the prior year period.

At fiscal year-end, there were 294 company-owned and 129 franchised Red Robin® restaurants.