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Bear of the Day

Red Robin Gourmet Burgers (RRGB)

By: Zacks Equity Research
November 10, 2009 | Comments: 0
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Red Robin Gourmet Burgers (RRGB - Analyst Report) is vulnerable to economic headwinds, and we believe that the stock will continue to underperform the restaurant industry. Impeding the growth is its sagging same-store sales and declining traffic counts.

The company's third-quarter 2009 same-store sales fell 14.9%. The chain expects guest counts to remain negative, and expects restaurant-level operating margins to decline by 150 to 160 basis points in fiscal year 2009.

In addition, more than 50% of total restaurants are located in areas, which have been hit hard by the housing downturn and economic slowdown. This may dampen the company's growth potential.


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Market Summary Nov 21, 2009 07:35 am ET
DJIA 10318.16  -14.28 -0.14%
NASD 2146.04  -10.78 -0.50%
S&P 500 1091.38  -3.52 -0.32%
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