Red Robin Gourmet Burgers, Inc. (NASDAQ:RRGB) was downgraded by Zacks Investment Research from a “buy” rating to a “hold” rating in a report issued on Wednesday.

According to Zacks, “Red Robin’s shares outpaced the industry year to date. Menu innovation, focus on increasing service speed, effective marketing and remodeling program to reinvigorate brands have got the growth story back on track, after a disappointing 2016. Though the current challenging retail environment continued affecting business in first-half 2017, initiatives undertaken to improve sales and regain market share as the year progresses bode well. Moreover, Red Robin has a mostly positive record of earnings surprises in recent quarters. Still, cost-related issues along with company’s limited international presence and domestic contraction raise concerns. A slowdown in company’s 2017 unit growth plan given the choppy sales environment could further weigh on sales. Estimates too have been going down ahead of its third quarter earnings release.”

RRGB has been the subject of a number of other research reports. Stifel Nicolaus started coverage on Red Robin Gourmet Burgers in a report on Monday, October 2nd. They set a “hold” rating and a $62.00 target price for the company. BidaskClub lowered Red Robin Gourmet Burgers from a “sell” rating to a “strong sell” rating in a report on Monday, July 31st. BTIG Research reiterated a “buy” rating and set a $70.00 price objective (up previously from $64.00) on shares of Red Robin Gourmet Burgers in a report on Tuesday, September 12th. Maxim Group reiterated a “buy” rating and set a $75.00 price objective (down previously from $80.00) on shares of Red Robin Gourmet Burgers in a report on Tuesday, August 1st. Finally, Canaccord Genuity reiterated a “buy” rating and set a $80.00 price objective on shares of Red Robin Gourmet Burgers in a report on Sunday, October 1st. One analyst has rated the stock with a sell rating, six have assigned a hold rating and six have issued a buy rating to the company’s stock. Red Robin Gourmet Burgers presently has a consensus rating of “Hold” and a consensus price target of $71.73.

Shares of Red Robin Gourmet Burgers (NASDAQ:RRGB) traded down 1.866% on Wednesday, reaching $64.425. The company’s stock had a trading volume of 89,084 shares. The firm has a market capitalization of $832.89 million, a PE ratio of 35.205 and a beta of 0.65. Red Robin Gourmet Burgers has a one year low of $40.85 and a one year high of $74.11. The firm has a 50-day moving average price of $61.38 and a 200 day moving average price of $62.12.

Red Robin Gourmet Burgers (NASDAQ:RRGB) last posted its earnings results on Tuesday, August 8th. The restaurant operator reported $0.61 earnings per share for the quarter, topping analysts’ consensus estimates of $0.51 by $0.10. The company had revenue of $315.80 million during the quarter, compared to analyst estimates of $315.69 million. Red Robin Gourmet Burgers had a return on equity of 8.00% and a net margin of 0.64%. Red Robin Gourmet Burgers’s revenue was up 3.4% on a year-over-year basis. During the same quarter in the prior year, the business earned $0.75 earnings per share. On average, analysts anticipate that Red Robin Gourmet Burgers will post $2.78 earnings per share for the current fiscal year.

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In related news, CFO Guy J. Constant purchased 2,500 shares of the business’s stock in a transaction on Monday, August 14th. The shares were bought at an average cost of $58.88 per share, with a total value of $147,200.00. The acquisition was disclosed in a document filed with the SEC, which is accessible through the SEC website. 2.66% of the stock is currently owned by company insiders.

A number of institutional investors and hedge funds have recently made changes to their positions in RRGB. BlackRock Inc. grew its position in Red Robin Gourmet Burgers by 43,842.6% during the 1st quarter. BlackRock Inc. now owns 1,561,279 shares of the restaurant operator’s stock worth $91,256,000 after purchasing an additional 1,557,726 shares during the period. Daruma Capital Management LLC grew its position in Red Robin Gourmet Burgers by 225.6% during the 2nd quarter. Daruma Capital Management LLC now owns 856,225 shares of the restaurant operator’s stock worth $55,869,000 after purchasing an additional 593,278 shares during the period. Dimensional Fund Advisors LP grew its position in Red Robin Gourmet Burgers by 29.4% during the 1st quarter. Dimensional Fund Advisors LP now owns 1,084,203 shares of the restaurant operator’s stock worth $63,371,000 after purchasing an additional 246,178 shares during the period. Highbridge Capital Management LLC grew its position in Red Robin Gourmet Burgers by 168.2% during the 1st quarter. Highbridge Capital Management LLC now owns 300,000 shares of the restaurant operator’s stock worth $17,535,000 after purchasing an additional 188,158 shares during the period. Finally, Kennedy Capital Management Inc. acquired a new stake in Red Robin Gourmet Burgers during the 1st quarter worth about $10,209,000.

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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Analyst Recommendations for Red Robin Gourmet Burgers (NASDAQ:RRGB)

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