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Red Robin (RRGB) to Fortify Presence with 2 New Outlets

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Red Robin Gourmet Burgers, Inc. (RRGB - Free Report) plans to open two Red Robin Gourmet Burgers and Brew restaurants on Apr 10, 2017. One of the outlets will be in Watertown, NY, located in front of the Hannaford grocery store in the Plaza at Salmon Run. The other outlet will be in Franklin, TN, located in the Cool Springs Galleria Mall outside Macy'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. In addition, the restaurants will serve 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, Red Robin loses out in terms of 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 weak on this front.

Meanwhile, the current challenging sales environment in the restaurants space, which the company apprehends will continue to affect business in first-half 2017, has led Red Robin to lower its pace of unit expansion. Although it plans to open roughly 17 new Red Robin locations in 2017, it is also looking forward to close down nine existing ones in the year.

Nevertheless, shares of the company recorded a return of 24.3% over the last six months, significantly outperforming the Zacks categorized Retail-Restaurants industry’s gain of 1.4%. This performance is the result of rising investor confidence as the company undertakes various initiatives to improve sales and regain market share. Also, Red Robin’s efforts to reinvigorate the brands through menu innovation, remodeling programs and continued focus on off-premise, online ordering business are encouraging.



Red Robin currently has a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

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