Red Robin 3Q profit falls as people continue to cook at home amid recession, hurting sales

Red Robin 3Q profit falls as fewer people eat out

GREENWOOD VILLAGE, Colo. — Casual dining chain Red Robin Gourmet Burgers Inc. said Thursday its profit fell 8 percent on lower sales as people ate out less during the recession.

Red Robin, based in Greenwood Village, Colo., said it had fewer customers and lower average guest checks, which together dragged down sales at stores open at least a year by 15 percent during the quarter.

The company earned $5.7 million, or 37 cents per share, in the quarter that ended Oct. 4. That is down from the $6.2 million, or 40 cents per share, it earned a year earlier.

The latest results matched a consensus estimate of analysts polled by Thomson Reuters.

Revenue fell 10 percent to $186.9 million from $208.6 million, coming in short of analysts’ prediction for revenue of $197.5 million.

The company said it continues to expect that guest counts will be negative for fiscal 2009.

Red Robin shares rose 68 cents, or 4 percent, to close at $17.69 on Thursday, but tumbled 91 cents, or more than 5 percent in after-hours trading.