Red Robin Gourmet Burgers, Inc. (RRGB - Analyst Report) plans to open a new Red Robin Gourmet Burgers and Brew restaurant at Spring Hill, TN on Oct 24, 2016. The outlet will be located at 2032 Crossings Circle across from Kohl’s.
Apart from the 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 540 Red Robin restaurants across the U.S. and Canada. Keeping in line with its expansion plans, the company is continuing to explore untapped domestic markets. Recently, it added outlets at Texas, California, Georgia, Idaho, New York, Florida, Oregon, and Indiana, to name a few.
However, Red Robin loses out in terms of international presence. Whereas other restaurateurs like Yum! Brands, Inc. (YUM - Analyst Report) , McDonalds Corporation (MCD - Analyst Report) and Papa John’s International, Inc. (PZZA - Analyst Report) are following aggressive global expansion policies, Red Robin seems to be weak on this front.
RED ROBIN GOURM Price
Moreover, the company lowered its total revenue growth guidance for 2016 from 8% to 5%. The comps guidance was lowered to a decline of almost 2%, which compared unfavorably with the previous expectation of flat to slightly negative growth. Estimates have also been going down ahead of the company’s third quarter earnings release.
Nonetheless, Red Robin’s efforts to expand its footprint through accelerated unit growth bode well. Moreover, we expect the company’s initiatives such as menu innovation, focus on increasing speed of service, effective marketing strategies and remodeling programs to aid top and bottom-line performance.
The company currently holds 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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