Red Robin Gourmet Burgers, Inc. RRGB plans to open a new Red Robin Gourmet Burgers and Brew restaurant at Fort Worth, TX on Oct 3, 2016. The outlet will be located in the Presidio Junction Shopping Center, next to Costco.
In addition to the company’s signature items like Royal Red Robin Burger, Bottomless Steak Fries, Smoke & Pepper Burger and Royal Red Robin Burger, the restaurant will also offer Freckled Lemonade. The menu will furthermore include 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 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, McDonalds Corporation MCD and Papa John’s International, Inc. PZZA are following aggressive global expansion policies, Red Robin seems to be weak on this front.
In its second quarter 2016 earnings release, Red Robin missed the Zacks Consensus Estimate for both earnings and revenue. 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.
However, we expect the company’s initiatives such as menu innovation, focus on increasing speed of service, effective marketing strategies and remodeling programs to boost 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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