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Red Robin Set To Expand In Colorado With Its New Restaurant

Published 06/26/2017, 09:24 PM
Updated 07/09/2023, 06:31 AM

Red Robin Gourmet Burgers, Inc. (NASDAQ:RRGB) plans to open a new Red Robin Gourmet Burgers and Brew restaurant at Brighton, CO, on Jul 10, 2017.

Apart from the signature items like Royal Red Robin Burger, Bottomless Steak Fries, Smoke & Pepper Burger, and the Red's Tavern Double, the menu will also feature Freckled Lemonade. Moreover, the restaurants will serve Black & Bleu burger, The Marco Pollo, the Southern Charm Burger, along with a variety of salads, entrees, soups and wraps.

Currently, there are more than 550 Red Robin restaurants across the U.S. and Canada. However, Red Robin loses out in terms of widespread international presence. While other restaurateurs like Yum! Brands, Inc. (NYSE:YUM) , McDonalds Corporation (NYSE:MCD) and Papa John’s International, Inc. (NASDAQ:PZZA) are following aggressive global expansion policies, Red Robin seems to be weak on this front.

Moreover, the current challenging sales environment in the restaurants space, which continued to affect business throughout first-half 2017, has led Red Robin to lower its pace of unit expansion. Although it plans to open roughly 17 new Red Robin locations in 2017, it is also looking forward to close down nine existing ones in the year.

Nevertheless, shares of the company have recorded a gain of nearly 19% year to date, outperforming the Zacks categorized Retail-Restaurants industry’s addition of 11.6%.



This performance can be attributed to rising investor confidence as the company undertakes various initiatives to improve sales and regain market share. Also, Red Robin’s efforts to reinvigorate the brands through menu innovation, remodeling programs and continued focus on off-premise, online ordering business are encouraging.

Furthermore, upward estimate revisions raise optimism in the stock’s prospects. Notably, the Zacks Consensus Estimate for 2017 and 2018 earnings, moved north by 4.4% and 7%, respectively, over the last 60 days.

Currently, Red Robin sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

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Yum! Brands, Inc. (YUM): Free Stock Analysis Report

McDonald's Corporation (MCD): Free Stock Analysis Report

Red Robin Gourmet Burgers, Inc. (RRGB): Free Stock Analysis Report

Papa John's International, Inc. (PZZA): Free Stock Analysis Report

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