Red Robin (RRGB) Plans To Launch New Restaurant In Indiana
Zacks Investment Research | Nov 14, 2017 09:57PM ET
A soft industry backdrop has been hampering the performance of most restaurant chains and Red Robin Gourmet Burgers, Inc. (NASDAQ:RRGB) is no exception.
In fact, the decline in sales volume has begun to impact the returns on the company’s new restaurant openings due to the challenging operating environment. Consequently, Red Robin has slowed down on its unit growth plan for 2017 and 2018. However, it has not completely refrained from it.
Recently, the company announced its plan to open a Red Robin Gourmet Burgers and Brew restaurant in Clarksville, IN, on Nov 27.
The latest outlet will include its signature items like Royal Red Robin Burger, Bottomless Steak Fries, Smoke & Pepper Burger, and Red's Tavern Double on the menu along with Freckled Lemonade. Additionally, it 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 570 Red Robin restaurants across the United States and Canada.
Yet, the company loses out in terms of international presence. While several other restaurant chains including Yum! Brands, Inc. (NYSE:YUM) , McDonald’s Corporation (NYSE:MCD) and The Wendy's Company (NASDAQ:WEN) have opened their outlets in the emerging markets, Red Robin seems to be weak on this front.
Additionally, higher labor, remodeling, restaurant maintenance and pre-opening costs may continue to hurt margins. Also, Red Robin is investing heavily in several sales building initiatives like advertising and technical upgrades, which will result in elevated costs.
In fact, the company’s shares have declined 12.2% year to date, as against the Zacks Investment Research
Get The News You Want
Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.