Red Robin Gourmet Burgers Inc RRGB
Q1 2013 Earnings Call Transcript

Transcript Call Date 05/21/2013

Operator: Good morning, ladies and gentlemen, and welcome to the Red Robin Gourmet Burgers Incorporated First Quarter 2013 Earnings Conference Call. At this time, all participants have been placed in a listen-only mode and the lines will be opened for your questions following the presentation.

As a reminder, part of today's discussion will include forward-looking statements within the meaning of federal securities laws. These statements are commonly identified by words such as continue, plan, expect, intend, project, should and other terms with similar meanings. These statements will include, but will not be limited to, statements that reflect the Company's current expectations with respect to the financial condition of the Company. Results of operations, plans, objectives, future performance and business including the Company's traffic and revenue driving initiatives, intentions with respect to expense management and plans for deployment of capital and other expectations discussed during the course of this call. Although the Company believes the assumptions upon which preliminary or initial results, financial information and forward-looking statements are based are reasonable as of today's date, these forward-looking statements are not guarantees of future performance and therefore, investors should not place undue reliance on them. Also, these statements are based on facts, known and expected, as of the date of this conference call and the Company undertakes no obligation to update these statements to reflect events or circumstances that might arise after this call.

Participants on the call today should refer to the Company's Form 10-K and other filings with the SEC for a more detailed discussion of the risks, uncertainties and other factors that could impact the Company's future operating results and financial conditions. The Company has posted its fiscal first quarter 2013 press release and supplemental financial information related to the quarter's results on its website in the Investors section.

I will now turn the call over to Mr. Steve Carley, Chief Executive Officer of Red Robin. Please go ahead, sir.

Steve Carley - CEO: Thanks Vicky, and thanks everyone for joining us on our call today. With me are Eric Houseman, our President and Chief Operating Officer; Denny Post, our Chief Marketing Officer; and Stuart Brown, our Chief Financial Officer. After Denny, Stuart and I deliver our prepared remarks, we will be available for Q&A.

But first I'd like to review our first quarter headlines which we've included on Slide 3 of our supplemental financials. Overall, we continue to be pleased with our performance and this quarter marked our 11th consecutive quarter of positive same-store sales. We also increased restaurant revenues, despite having seasonality and marketing headwinds. As we said during our Q4 call in February, we expected sales and earnings to be negatively impacted due to our lapping of Q1 2012 that had week of strong holiday sales and our change in media timing. The impact in Q1 2013 was a shift of about $8 million in sales into the fourth quarter. Our year-over-year guest traffic was down 60 bps and both net income and diluted earnings per share decreased compared to Q1 last year. Nevertheless, our continued same-store sales growth and our market share gains and the progress we are making on our key roadmap initiatives give us confidence that we are strengthening our business and positioning Red Robin for long-term growth and profitability.

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