Zacks Investment Research upgraded shares of Red Robin Gourmet Burgers (NASDAQ:RRGB) from a sell rating to a hold rating in a research report released on Tuesday morning.
According to Zacks, “Red Robin’s shares have underperformed the industry year to date. A soft consumer spending environment along with company’s limited global presence and domestic contraction raise concerns. Also, a slowdown in company’s unit growth plan could further weigh on its revenues. Nevertheless, initiatives undertaken to improve sales and regain market share bode well. Particularly, continual focus on menu innovation, value offerings, increasing service speed, effective marketing strategy, remodeling programs and increased emphasis on off-premise, online ordering business are encouraging. Even so, higher labor costs and increased investments in initiatives are likely to hurt profits. Notably, earnings estimates for 2018 has gone down in the past 60 days, reflecting analysts’ concern surrounding the stock’s prospects.”
Other research analysts have also issued reports about the stock. BidaskClub raised shares of Red Robin Gourmet Burgers from a hold rating to a buy rating in a research report on Saturday, December 30th. Jefferies Group raised shares of Red Robin Gourmet Burgers from a hold rating to a buy rating and lifted their price objective for the stock from $58.00 to $63.00 in a research report on Saturday, December 30th. Canaccord Genuity reaffirmed a buy rating and issued a $80.00 price objective on shares of Red Robin Gourmet Burgers in a research report on Sunday, October 1st. BTIG Research reaffirmed a buy rating and issued a $70.00 price objective (up previously from $64.00) on shares of Red Robin Gourmet Burgers in a research report on Tuesday, September 12th. Finally, Maxim Group reaffirmed a buy rating and issued a $75.00 price objective on shares of Red Robin Gourmet Burgers in a research report on Monday, October 30th. Six investment analysts have rated the stock with a hold rating and seven have assigned a buy rating to the company’s stock. The stock presently has a consensus rating of Buy and an average target price of $69.45.
Red Robin Gourmet Burgers (NASDAQ:RRGB) last released its quarterly earnings data on Monday, November 6th. The restaurant operator reported $0.21 earnings per share for the quarter, missing analysts’ consensus estimates of $0.30 by ($0.09). Red Robin Gourmet Burgers had a net margin of 0.94% and a return on equity of 7.32%. The business had revenue of $304.20 million during the quarter, compared to the consensus estimate of $308.44 million. During the same period last year, the business posted $0.38 earnings per share. The firm’s quarterly revenue was up 2.3% on a year-over-year basis. sell-side analysts forecast that Red Robin Gourmet Burgers will post 2.26 earnings per share for the current fiscal year.
In other news, COO Carin Stutz acquired 715 shares of Red Robin Gourmet Burgers stock in a transaction that occurred on Tuesday, November 14th. The stock was bought at an average price of $49.15 per share, with a total value of $35,142.25. The purchase was disclosed in a legal filing with the Securities & Exchange Commission, which is available at this link. 2.66% of the stock is currently owned by insiders.
A number of institutional investors have recently made changes to their positions in the business. GSA Capital Partners LLP bought a new stake in Red Robin Gourmet Burgers during the third quarter valued at approximately $650,000. Colony Group LLC bought a new stake in shares of Red Robin Gourmet Burgers in the 3rd quarter worth approximately $1,574,000. California Public Employees Retirement System lifted its holdings in shares of Red Robin Gourmet Burgers by 11.4% in the 3rd quarter. California Public Employees Retirement System now owns 30,409 shares of the restaurant operator’s stock worth $2,037,000 after acquiring an additional 3,109 shares during the last quarter. Janney Montgomery Scott LLC lifted its holdings in shares of Red Robin Gourmet Burgers by 18.3% in the 3rd quarter. Janney Montgomery Scott LLC now owns 8,340 shares of the restaurant operator’s stock worth $559,000 after acquiring an additional 1,289 shares during the last quarter. Finally, Highbridge Capital Management LLC lifted its holdings in shares of Red Robin Gourmet Burgers by 1,043.9% in the 3rd quarter. Highbridge Capital Management LLC now owns 110,000 shares of the restaurant operator’s stock worth $7,370,000 after acquiring an additional 100,384 shares during the last quarter.
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About Red Robin Gourmet Burgers
Red Robin Gourmet Burgers, Inc, together with its subsidiaries, primarily develops, operates, and franchises full-service restaurants in North America and focuses on serving selection of gourmet burgers. The Company’s menu features a line of gourmet burgers, which it makes from ground beef, as well as its line of Red’s Tavern Double Burgers and its Red Robin’s line of half-pound Angus beef burgers with various toppings.
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