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Bear of the Day

Red Robin Gourmet Burgers (RRGB)

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By: Zacks Equity Research
November 10, 2009 | Comment(s): 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.

Red Robin Gourmet Burgers (RRGB) : FULL ANALYST REPORT

Bear of the Day
Every day we feature one stock with a Zacks Recommendation of Sell that is set to underperform over the next 6+ months. We also provide you with free access to the in-depth research report on the stock. If you would like to see all our Buy and Sell rated stocks and in-depth research reports, then check out  Zacks Premium.

Read the full analyst report on RRGB

 

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