Red Robin Gourmet Burgers, Inc. F3Q09 (Qtr End 10/04/09) Earnings Call Transcript

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2009-11-05 18:33:14.0

Tags: Oppenheimer & Co., Call Transcript, Earnings, Red Robin Gourmet Burgers Inc., Seeking Alpha

Question-and-Answer Session

Operator

(Operator Instructions) Your first question comes from [Andrew Chiles] - BAS-ML.

Andrew Chiles - BAS-ML

Could you talk a little bit about the pressure that you're seeing from double cheeseburger competition at the QSR level?

Dennis B. Mullen

Well, there's competition across all levels, so we have nothing specific to respond to on any particular double cheeseburger promotion.

Andrew Chiles - BAS-ML

And also the first four weeks of the quarter in October same-store sales, what are you guys lapping for the November and December of 2008?

Katie Scherping

We don't disclose period to period. Our first quarter of 2008 was down 7.4% for the full quarter, so we began with a negative 8 in the first four weeks.

Operator

Your next question comes from [Rachel Schechter] - Oppenheimer & Co.

Rachel Schechter - Oppenheimer & Co.

Just regarding your comps, if you could comment on your traffic trend at lunch versus dinner and weekday versus weekend, and also if you see any change in major geographies?

Katie Scherping

The lunch versus dinner mix has not changed, Rachel. It's been the same that we've seen for several years, and we've kept our eye on that after the competition question. We've watched that very carefully, and we haven't seen any degradation there. And the weekday trends haven't really changed, so that's still about the same. They're pretty consistent all the way across the week.

Rachel Schechter - Oppenheimer & Co.

And then any major geography changes?

Katie Scherping

Not really. We called out California, Arizona, Nevada awhile ago when they first starting impacting us significantly early in 2008, and we haven't seen any material changes in any region since then.

Rachel Schechter - Oppenheimer & Co.

And then some of the other calls we've been listening to have mentioned that they expect a negative impact on same-store sales from the Halloween and Christmas weekend shift this year. Are you expecting to see the same?

Katie Scherping

We looked at our past history when Halloween and Christmas fell on the same days, and we really didn't see a significant impact. So maybe 10 basis points in a quarter, but it's not significant.

Eric C. Houseman

Halloween was Friday last year and Saturday this, so they're both big nights for us, so we wouldn't have seen a material change there.

Rachel Schechter - Oppenheimer & Co.

And then also I know recently there was some snowfall in Denver. Did that affect your October comp at all?

 

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