Red Robin posts higher Q2, cuts outlook

(Reuters) - Red Robin Gourmet Burgers Inc (RRGB.O), a casual dining restaurant chain, reported a 61 percent rise in second-quarter profit on strong restaurant revenues, but cut its full-year outlook, sending its shares down nearly 4 percent.

The company also said it would buy back $50 million worth of shares.

Net income was $7.9 million, or 49 cents per share, compared with an income of $4.9 million, or 29 cents a share, a year earlier.

The company recorded a charge of 3 cents a share in the latest quarter on the acquisition of its franchised restaurants and related integration costs.

Total revenue rose nearly 16 percent to $206.4 million.

Analysts on average expected the company to earn 48 cents a share, excluding special items, on revenue of $210.6 million, according to Reuters Estimates.

For the full year, the company expects earnings of $1.87 to $2.02 a share on revenue of $888 million to $894 million.

The company had previously projected full-year earnings of at least $2.04 a share and revenue of at least $905 million.

Analysts expect earnings of $2.10 per share, before items, on revenue of $903.6 million, for the period.

Chief Executive Officer Dennis Mullen said he was concerned about the macroeconomic factors impacting the casual dining industry.

"While we believe our branding efforts and restaurant initiatives are making a positive impact on our performance, they are being overshadowed by industry headwinds," he added.

The Greenwood Village, Colorado-based company said while same restaurant sales decreased 0.4 percent for the quarter, it expects full-year same-restaurant sales to go up about 1 to 2 percent.

Shares of Red Robin were down $28.52 in trading after the bell. They closed at $29.59 Thursday on Nasdaq.

(Reporting by Divya Nair in Bangalore; Editing by Anil D'Silva)