Casual dining restaurant operator, Red Robin Gourmet Burgers Inc. (RRGB - Analyst Report), is set to unveil a new restaurant in Baltimore, MD shortly. This is the sixth outlet of the company’s targeted opening of 20 outlets in 2013 and bears evidence to its strategy of expanding in the lucrative domestic market.
The restaurant will be located at the famous Waugh Chapel Shopping Center. Red Robin’s value offerings and the contemporary ambience will drive its sales, going ahead.
As per the National Restaurant Association, Maryland’s restaurant industry contributes considerably to the state’s revenues. According to the research organization, Maryland’s restaurants are expected to record $10.3 billion in sales in 2013. High demand and high spending ability in Maryland are favorable to the sector’s growth.
Maryland’s capital, Annapolis, and its largest city, Baltimore, already boast a host of renowned restaurant operators like The Wendy’s Company (WEN - Analyst Report), McDonald's Corp. (MCD - Analyst Report) and Burger King Worldwide, Inc. (BKW - Analyst Report).
Currently, Red Robin operates only 13 units in Maryland, which makes it a relatively newer market for the company as compared with California which has as many as 70 Red Robin restaurants. Hence, the company has decided to further expand in Maryland.
The Colorado-based restaurateur is also exploring development opportunities in several underpenetrated markets such as Florida, New York, New Jersey, Chicago and Texas to further strengthen its presence in the U.S. Recently, the company opened a unit in Chicago which has strong growth prospects and potential to record $21.7 billion in sales 2013.
Moreover, this Zacks Rank #3 (Hold) company, which currently boasts more than 470 restaurants across the United States and Canada, is keen on establishing the presence of its smaller prototype restaurants, Red Robin’s Burger Works. The company’s smaller format restaurants will likely accelerate its growth in non-traditional locations and also improve return on invested capital, going ahead.