The company expects to open at least one smaller prototype location open before the end of 2011. The new test complements to Red Robin’s existing 5,600-square-foot casual dining format.

Earlier in May 2011, the company has said to open 10 full-sized restaurants in fiscal 2011.

The company has identified several locations suitable for the smaller prototype primarily in the Denver area. Red Robin will evaluate the operating performance and unit level economics of this smaller prototype before deciding on expansion plans.

Over time, the reduced footprint could enable Red Robin to accelerate development into non-traditional locations that have not been previously available based on space requirements of the current prototype, as well as further leverage its brand as the gourmet burger experts.

Red Robin Gourmet Burgers operates through its wholly-owned subsidiary, Red Robin International. There are more than 450 Red Robin restaurants located across the US and Canada, including company-owned locations and those operating under franchise agreements.

As of May 15, 2011, the company held $34.6m in cash and cash equivalents and had a total outstanding debt balance of $161.1m, including $150m of borrowings under its $150m term loan, no borrowings under its $150m revolving credit facility and $11.1m outstanding for capital leases. There were $7m of letters of credit issued under its revolving credit facility.

Will the new prototype helpful for the company?

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