Red Robin Gourmet Burgers, Inc. (NASDAQ:RRGB) Rating Lowered to Sell at Zacks Investment Research
Red Robin Gourmet Burgers, Inc. (NASDAQ:RRGB) was downgraded by Zacks Investment Research from a “buy” rating to a “sell” rating in a note issued to investors on Thursday.
According to Zacks, “We note that 2016 was a tough year for Red Robin given the impact of acquiring lower-margin franchise restaurants and higher labor cost that hurt margins. Higher pre-opening and remodeling costs coupled with soft industry trends added to the woes. Even so, various sales-boosting initiatives undertaken should aid in turning around its business and gaining investor confidence. It is also set on growing its off-premise, online-ordering business via carry-out, delivery and catering. Notably, the company has mostly positive record of earnings surprises in recent quarters. Still, cost-related issues, soft consumer spending environment along with company’s limited global presence and domestic contraction raise concerns. A slowdown in its 2017 unit growth plan could further weigh on revenues. In fact, shares of the company underperformed the industry in the past one month. Estimates too have been going down ahead of its Q2 earnings release.”
Several other equities analysts have also recently issued reports on RRGB. Raymond James Financial, Inc. reaffirmed a “strong-buy” rating and set a $85.00 price objective on shares of Red Robin Gourmet Burgers in a report on Tuesday. BidaskClub cut Red Robin Gourmet Burgers from a “hold” rating to a “sell” rating in a report on Sunday, July 16th. Canaccord Genuity reaffirmed a “hold” rating and set a $62.00 price objective on shares of Red Robin Gourmet Burgers in a report on Wednesday, May 17th. Maxim Group reaffirmed a “buy” rating and set a $80.00 price objective on shares of Red Robin Gourmet Burgers in a report on Tuesday, May 23rd. Finally, Wells Fargo & Company reaffirmed a “market perform” rating and set a $70.00 price objective on shares of Red Robin Gourmet Burgers in a report on Thursday, May 25th. Two analysts have rated the stock with a sell rating, five have assigned a hold rating, four have given a buy rating and one has assigned a strong buy rating to the company. The company currently has an average rating of “Hold” and an average price target of $75.30.
Red Robin Gourmet Burgers (NASDAQ:RRGB) opened at 63.15 on Thursday. Red Robin Gourmet Burgers has a 1-year low of $40.85 and a 1-year high of $74.11. The stock has a market cap of $812.68 million, a price-to-earnings ratio of 92.60 and a beta of 0.64. The firm has a 50-day moving average price of $65.12 and a 200 day moving average price of $57.93.
Red Robin Gourmet Burgers (NASDAQ:RRGB) last issued its quarterly earnings data on Tuesday, May 16th. The restaurant operator reported $0.89 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.58 by $0.31. The firm had revenue of $418.60 million during the quarter, compared to analysts’ expectations of $416.48 million. Red Robin Gourmet Burgers had a return on equity of 8.73% and a net margin of 0.69%. Red Robin Gourmet Burgers’s revenue was up 4.1% on a year-over-year basis. During the same period in the previous year, the firm posted $1.27 earnings per share. On average, equities research analysts anticipate that Red Robin Gourmet Burgers will post $2.93 EPS for the current fiscal year.
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In other news, Director Glenn B. Kaufman sold 4,000 shares of the business’s stock in a transaction on Friday, May 26th. The stock was sold at an average price of $72.25, for a total value of $289,000.00. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available through the SEC website. Also, Director Robert Blaine Aiken, Jr. sold 2,946 shares of the business’s stock in a transaction on Wednesday, May 31st. The stock was sold at an average price of $71.80, for a total value of $211,522.80. Following the completion of the transaction, the director now directly owns 6,547 shares of the company’s stock, valued at $470,074.60. The disclosure for this sale can be found here. Insiders own 2.66% of the company’s stock.
Institutional investors have recently added to or reduced their stakes in the company. Public Employees Retirement System of Ohio boosted its position in Red Robin Gourmet Burgers by 10.3% in the first quarter. Public Employees Retirement System of Ohio now owns 1,759 shares of the restaurant operator’s stock worth $103,000 after buying an additional 164 shares during the period. Acadian Asset Management LLC bought a new position in Red Robin Gourmet Burgers during the second quarter worth $149,000. Benjamin F. Edwards & Company Inc. boosted its position in Red Robin Gourmet Burgers by 74.4% in the first quarter. Benjamin F. Edwards & Company Inc. now owns 2,431 shares of the restaurant operator’s stock worth $142,000 after buying an additional 1,037 shares during the period. State of Alaska Department of Revenue boosted its position in Red Robin Gourmet Burgers by 77.8% in the second quarter. State of Alaska Department of Revenue now owns 2,542 shares of the restaurant operator’s stock worth $165,000 after buying an additional 1,112 shares during the period. Finally, Mason Street Advisors LLC boosted its position in Red Robin Gourmet Burgers by 7.0% in the first quarter. Mason Street Advisors LLC now owns 3,007 shares of the restaurant operator’s stock worth $176,000 after buying an additional 197 shares during the period.
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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