Red Robin Gourmet Burgers (NASDAQ:RRGB) was upgraded by research analysts at Wunderlich from a “hold” rating to a “buy” rating in a report released on Friday, TheFlyOnTheWall.com reports. The firm currently has a $90.00 price objective on the stock, up from their previous price objective of $70.00. Wunderlich’s price objective points to a potential upside of 18.14% from the stock’s previous close.
The analysts wrote, “We are elevating our rating on Red Robin (RRGB) back to Buy from Hold given our confidence in management’s plan despite risks of slowing industry sales and volatile commodity prices. We believe Red Robin’s same store sales (SSS) and traffic trends have continued to outperform most industry peers and are well-positioned to sustain that trend through 2015. Supported by its affordable check average, expeditious service, and elevated service and product offerings, we believe RR’s business model is poised for even better operating trends to come. As management begins to reap the 2013 investments in its brand in 2014 and 2015, we believe its operating trends are poised to further accelerate. Factoring a 25-30x P/E to our 2015 EPS, we have raised our PT to $90 from $70 and rate RRGB as Buy.”
Red Robin Gourmet Burgers (NASDAQ:RRGB) opened at 76.18 on Friday. Red Robin Gourmet Burgers has a 52-week low of $30.43 and a 52-week high of $76.92. The stock has a 50-day moving average of $71.88 and a 200-day moving average of $59.88. The company has a market cap of $1.091 billion and a price-to-earnings ratio of 35.92.
Red Robin Gourmet Burgers (NASDAQ:RRGB) last announced its earnings results on Thursday, August 15th. The company reported $0.77 earnings per share for the quarter, beating the analysts’ consensus estimate of $0.66 by $0.11. The company had revenue of $238.30 million for the quarter, compared to the consensus estimate of $239.61 million. During the same quarter last year, the company posted $0.52 earnings per share. Red Robin Gourmet Burgers’s revenue was up 6.5% compared to the same quarter last year. Analysts expect that Red Robin Gourmet Burgers will post $2.28 EPS for the current fiscal year.
Other equities research analysts have also recently issued reports about the stock. Analysts at Zacks upgraded shares of Red Robin Gourmet Burgers from a “neutral” rating to an “outperform” rating in a research note to investors on Friday, October 4th. They now have a $88.00 price target on the stock. Separately, analysts at Raymond James downgraded shares of Red Robin Gourmet Burgers from a “strong-buy” rating to an “outperform” rating in a research note to investors on Tuesday, October 1st. Finally, analysts at KeyCorp raised their price target on shares of Red Robin Gourmet Burgers from $68.00 to $75.00 in a research note to investors on Friday, September 27th. They now have a “buy” rating on the stock. Seven equities research analysts have rated the stock with a hold rating and six have issued a buy rating to the company. The company presently has a consensus rating of “Hold” and an average target price of $68.70.
Red Robin Gourmet Burgers, Inc (NASDAQ:RRGB) together with its subsidiaries, is a casual dining restaurant chain focused on serving gourmet burgers.
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