Back to top

Analyst Blog

Casual dining restaurant operator Red Robin Gourmet Burgers Inc. (RRGB - Analyst Report), which currently boasts more than 470 restaurants across the United States and Canada, is set to open a new restaurant in Chicago shortly.

At present, the gourmet burger expert has about 16 units in Illinois, which makes the state a relatively newer market for Red Robin compared to California which has as many as 88 units.

According to the National Restaurant Association, the restaurant industry in Illinois plays a pivotal role in the state’s revenues. According to this research site, the state’s restaurants are expected to record $21.7 billion in sales in 2013, 3.3% of total projected sales in the U.S.

With the resurgence of consumer confidence, management has accelerated its unit openings and plans to unveil another 20 new units in 2013. Moreover, the company, in association with its franchises, is expected to debut in four new cities in 2013.

This Colorado-based company is also exploring new development opportunities in the untapped markets of Florida, New York, New Jersey, Chicago and Texas to further enhance its presence in the U.S.  It is also set to open its second location in Baltimore, Md in mid-July. In fact, Maryland is also an under-penetrated US state with a potential to record $10.3 million in restaurant sales in 2013.

That’s not all. This Zacks Rank #3 (Hold) company is also very active on the expansion of its other formats. The company’s smaller prototype restaurants, Red Robin’s Burger Works, will likely accelerate its growth in non-traditional locations and also improve return on invested capital.

Other players in the restaurant industry, which look attractive at current levels, include The Wendy’s Co. (WEN - Analyst Report), The Cheesecake Factory Inc. (CAKE - Analyst Report) and Burger King Worldwide Inc. (BKW - Analyst Report), all carrying a Zacks Rank #2 (Buy).
 

Please login to Zacks.com or register to post a comment.

New to Zacks?

Start Here

Zacks Investment Research

Close

Are you a new Zacks Member or a visitor to Zacks.com?

Top Zacks Features

My Portfolio Tracker

Is it Time to Sell?

One of the most important steps you can take today is to set up your portfolio tracker on Zacks.com. Once you do, you'll be notified of major events affecting your stocks and/or funds with daily email alerts.

More Zacks Resources

Zacks Rank Home - Evaluate your stocks and use the Zacks Rank to eliminate the losers and keep the winners.

Mutual Fund Rank Home - Evaluate your funds with the Mutual Fund Rank for both your personal and retirement funds.

Stock/Mutual Fund Screening - Find better stocks and mutual funds. The ones most likely to beat the market and provide a positive return.

My Portfolio - Track your Portfolio and find out where your stocks/mutual funds stack up with the Zacks Rank.

Zacks #1 Rank Top Movers for Zacks #1 Rank Top Movers

Company Symbol Price %Chg
UNITED THER… UTHR 117.83 +28.51%
TRIQUINT SE… TQNT 20.67 +6.52%
RF MICRO DE… RFMD 12.47 +6.04%
VASCO DATA… VDSI 14.77 +4.68%
BANCO DO BR… BDORY 15.53 +3.95%