Zacks Investment Research upgraded shares of Red Robin Gourmet Burgers (NASDAQ:RRGB) from a hold rating to a buy rating in a report issued on Wednesday. Zacks Investment Research currently has $59.00 price target on the restaurant operator’s stock.
According to Zacks, “Red Robin’s efforts to improve sales and regain market share via efficient menu innovation, focus on increasing service speed, effective marketing strategy and remodeling programs bode well. Earnings estimates for 2018 has gone up in the last 60 days, reflecting analysts’ optimism surrounding the stock. Particularly, focus on value offerings and a growing off-premise, online ordering business combine to ensure that Red Robin remains affordable for dine-in and carry-out guests alike. However, the challenging operating environment in the U.S. restaurants space could continue affecting business. Cost-related issues along with company’s limited international presence and domestic contraction raise concerns too. A slowdown in company’s unit growth plan could further weigh on its revenues. Shares of the company have also underperformed its industry in the past year.”
A number of other brokerages have also recently commented on RRGB. BidaskClub cut shares of Red Robin Gourmet Burgers from a buy rating to a hold rating in a research note on Thursday, January 11th. Stifel Nicolaus dropped their price objective on shares of Red Robin Gourmet Burgers from $62.00 to $58.00 and set a hold rating on the stock in a research note on Tuesday, November 7th. Maxim Group cut shares of Red Robin Gourmet Burgers from a buy rating to a hold rating and dropped their price objective for the stock from $75.00 to $60.00 in a research note on Tuesday, November 7th. BTIG Research dropped their price objective on shares of Red Robin Gourmet Burgers from $70.00 to $63.00 and set a buy rating on the stock in a research note on Tuesday, November 7th. Finally, Jefferies Group raised shares of Red Robin Gourmet Burgers from a hold rating to a buy rating and raised their price objective for the stock from $58.00 to $63.00 in a research note on Friday, December 22nd. One investment analyst has rated the stock with a sell rating, five have given a hold rating and seven have given a buy rating to the stock. Red Robin Gourmet Burgers currently has an average rating of Hold and a consensus target price of $68.18.
Red Robin Gourmet Burgers (NASDAQ:RRGB) last posted its quarterly earnings results on Monday, November 6th. The restaurant operator reported $0.21 earnings per share (EPS) for the quarter, missing analysts’ consensus estimates of $0.30 by ($0.09). Red Robin Gourmet Burgers had a return on equity of 7.32% and a net margin of 0.94%. The business had revenue of $304.20 million for the quarter, compared to analysts’ expectations of $308.44 million. During the same period in the prior year, the business posted $0.38 earnings per share. The business’s quarterly revenue was up 2.3% compared to the same quarter last year. equities analysts predict 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 the company’s stock in a transaction dated Tuesday, November 14th. The shares were acquired at an average price of $49.15 per share, with a total value of $35,142.25. The purchase was disclosed in a document filed with the SEC, which is available through the SEC website. 2.66% of the stock is owned by company insiders.
A number of institutional investors have recently added to or reduced their stakes in the stock. American Century Companies Inc. grew its stake in Red Robin Gourmet Burgers by 13.5% in the 4th quarter. American Century Companies Inc. now owns 359,315 shares of the restaurant operator’s stock valued at $20,265,000 after acquiring an additional 42,750 shares during the period. Comerica Bank grew its stake in Red Robin Gourmet Burgers by 54.1% in the 4th quarter. Comerica Bank now owns 78,679 shares of the restaurant operator’s stock valued at $4,127,000 after acquiring an additional 27,636 shares during the period. Alambic Investment Management L.P. grew its stake in Red Robin Gourmet Burgers by 147.0% in the 4th quarter. Alambic Investment Management L.P. now owns 60,752 shares of the restaurant operator’s stock valued at $3,426,000 after acquiring an additional 36,152 shares during the period. Wedge Capital Management L L P NC grew its stake in Red Robin Gourmet Burgers by 8.1% in the 4th quarter. Wedge Capital Management L L P NC now owns 391,420 shares of the restaurant operator’s stock valued at $22,076,000 after acquiring an additional 29,339 shares during the period. Finally, Hussman Strategic Advisors Inc. acquired a new stake in Red Robin Gourmet Burgers in the 4th quarter valued at $1,410,000.
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Red Robin Gourmet Burgers Company Profile
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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