News

Red Robin sets stage for fast casual concept expansion

May 17, 2012

Red Robin Gourmet Burgers plans to open additional fast casual restaurants in 2012, according to the company's first quarter earnings report released May 16.

Red Robin opened its first fast casual offshoot, Red Robin Burger Works in November. Another location has since opened on The Ohio State University's campus in Columbus, Ohio, and a third is opening May 21.

For the year, the company has plans to open 13 company-owned Red Robin locations, and four Burger Works restaurants.

While the company has announced plans to open 200 Red Robin locations over the next five years, executives have been reticent to outline a specific growth plan for Burger Works. However, executives project five to 10 locations will be open in 2013.

With a footprint considerably smaller than that of a traditional Red Robin, the Burger Works brand is positioned to expand into non-traditional locations such as airports, military bases, food courts and college campuses. A current Red Robin is 5,600 square feet while Burger Works units require 2,000-4,000 square feet.

Red Robin's first quarter revenue came in at $299.5 million, an increase of 4 percent when compared to the same period last year. Earnings per share were reported as $0.71, a 22 percent increase from $0.59 per share for the same period last year.

Net income for the quarter was $10.6 million, versus $8.7 million last year.