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Red Robin Gourmet Burgers (NASDAQ:RRGB) was upgraded by Zacks from a “neutral” rating to an “outperform” rating in a research report issued to clients and investors on Tuesday. The firm currently has a $85.00 target price on the stock. Zacks‘s price target indicates a potential upside of 19.38% from the stock’s previous close.

Zacks’ analyst wrote, “We upgrade our recommendation on Red Robin Gourmet Burgers to Outperform from Neutral as it beat the Zacks Consensus Estimate for both revenues and earnings in the first-quarter of 2014. Adjusted earnings of $0.82 per share grew more than 24% driven by an 11% growth in revenues, despite inclement weather. Revenues were driven by a 5.4% comp increase, owing to higher guest traffic growth. The company has been posting positive comps over the past three years, in sharp contrast to peers who have been struggling amid a sluggish economic environment. Overall, we are encouraged with the company’s initiatives including menu innovation, effective marketing strategy, unit expansion and remodeling programs to reinvigorate its brands. However, we remain concerned about incremental labor costs, commodity inflation and macroeconomic uncertainty.”

Red Robin Gourmet Burgers (NASDAQ:RRGB) traded up 1.47% during mid-day trading on Tuesday, hitting $72.25. 59,769 shares of the company’s stock traded hands. Red Robin Gourmet Burgers has a 1-year low of $55.27 and a 1-year high of $86.83. The stock has a 50-day moving average of $71.35 and a 200-day moving average of $70.46. The company has a market cap of $1.033 billion and a price-to-earnings ratio of 29.89.

Red Robin Gourmet Burgers (NASDAQ:RRGB) last posted its quarterly earnings results on Tuesday, May 20th. The company reported $0.82 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.72 by $0.10. The company had revenue of $340.50 million for the quarter, compared to the consensus estimate of $334.80 million. During the same quarter in the previous year, the company posted $0.66 earnings per share. The company’s revenue for the quarter was up 11.2% on a year-over-year basis. On average, analysts predict that Red Robin Gourmet Burgers will post $2.86 earnings per share for the current fiscal year.

Red Robin Gourmet Burgers, Inc (NASDAQ:RRGB) together with its subsidiaries, is a casual dining restaurant chain focused on serving gourmet burgers.

To view Zacks’ full report, visit Zacks’ official website.

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