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Red Robin (RRBG) Set to Expand in New Mexico with New Outlet
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Red Robin Gourmet Burgers, Inc. (RRGB - Free Report) plans to open a new Red Robin Gourmet Burgers and Brew restaurant at Albuquerque, NM on Mar 20, 2017. The outlet will be located at 2100 Louisiana Blvd. NE, Bldg. 217, in the Winrock Town Center.
Apart from 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 restaurant will serve D.G.B., 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, the company loses out in terms of widespread international presence. While other restaurateurs like Yum! Brands, Inc. (YUM - Free Report) , McDonalds Corporation (MCD - Free Report) and Papa John’s International, Inc. (PZZA - Free Report) are following aggressive global expansion policies, Red Robin seems to be lagging on this front.
Last month, the company reported mixed fourth-quarter 2016 earnings numbers, wherein the bottom line beat the Zacks Consensus Estimate but the top line lagged the same. Company-owned restaurants’ comps declined 4.3% year over year, driven by a decline in both traffic and average guest check.
Shares of the company have recorded a decline of 26.5% in the last one year, significantly underperforming the Zacks categorized Retail-Restaurants industry’s dip of 2.6% in the same time frame. This underperformance is a testimony to the challenging sales environment in the restaurants space which the company expects to continue affecting business in the first-half 2017. Thus, the company has lowered pace of unit expansion. In 2016, it impaired two Red Robin Gourmet Burger locations and anticipates closing down nine more in 2017.
Resultantly, estimates for Red Robin’s earnings have also been witnessing a downtrend, mirroring analysts’ pessimism in the stock’s prospects. Current quarter and current year estimates have moved south over 59% and 14% respectively, in the last two months.
However, going forward we expect the company’s initiatives such as menu innovation, focus on increasing speed of service, effective marketing strategies and remodeling programs to somewhat aid both top-line and bottom-line performance.
The company currently carries a Zacks Rank #4 (Sell).
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Red Robin (RRBG) Set to Expand in New Mexico with New Outlet
Red Robin Gourmet Burgers, Inc. (RRGB - Free Report) plans to open a new Red Robin Gourmet Burgers and Brew restaurant at Albuquerque, NM on Mar 20, 2017. The outlet will be located at 2100 Louisiana Blvd. NE, Bldg. 217, in the Winrock Town Center.
Apart from 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 restaurant will serve D.G.B., 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, the company loses out in terms of widespread international presence. While other restaurateurs like Yum! Brands, Inc. (YUM - Free Report) , McDonalds Corporation (MCD - Free Report) and Papa John’s International, Inc. (PZZA - Free Report) are following aggressive global expansion policies, Red Robin seems to be lagging on this front.
Last month, the company reported mixed fourth-quarter 2016 earnings numbers, wherein the bottom line beat the Zacks Consensus Estimate but the top line lagged the same. Company-owned restaurants’ comps declined 4.3% year over year, driven by a decline in both traffic and average guest check.
Shares of the company have recorded a decline of 26.5% in the last one year, significantly underperforming the Zacks categorized Retail-Restaurants industry’s dip of 2.6% in the same time frame. This underperformance is a testimony to the challenging sales environment in the restaurants space which the company expects to continue affecting business in the first-half 2017. Thus, the company has lowered pace of unit expansion. In 2016, it impaired two Red Robin Gourmet Burger locations and anticipates closing down nine more in 2017.
Resultantly, estimates for Red Robin’s earnings have also been witnessing a downtrend, mirroring analysts’ pessimism in the stock’s prospects. Current quarter and current year estimates have moved south over 59% and 14% respectively, in the last two months.
However, going forward we expect the company’s initiatives such as menu innovation, focus on increasing speed of service, effective marketing strategies and remodeling programs to somewhat aid both top-line and bottom-line performance.
The company currently carries a Zacks Rank #4 (Sell).
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
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