Red Robin to Expand in US with New Warrington Restaurant - Analyst Blog
Red Robin Gourmet Burgers Inc. RRGB recently announced that it will unveil a restaurant in Warrington, Pennsylvania, on Apr 27 to expand its domestic presence. The outlet will be located at 281 Easton Road in the new Valley Gate Shopping Center opposite the Regal Movie Theatre.
Apart from the signature items like Royal Red Robin Burger and Bottomless Steak Fries as well as the Smoke & Pepper Burger, Royal Red Robin Burger, Red's Tavern Double Burger, The D.G.B., Black & Bleu burger, and the Southern Charm Burger, the restaurant will also offer the Freckled Lemonade. The menu will also include a variety of salads, entrees, soups and wraps.
The company will contribute the proceeds from the sale of its signature Freckled Lemonade during the grand opening week — Apr 27 to May 3 — to the non-profit organization, Alex's Lemonade Stand Foundation.
Red Robin’s unit expansion continues despite economic uncertainty. With the resurgence in consumer confidence, management accelerated unit openings and expects to unveil 20 units along with 5 Red Robin’s Burger Works in fiscal 2015. Currently, the restaurateur operates 514 units across the United States and Canada.
Moreover, the company is exploring new development opportunities in untapped markets of Florida, New York, New Jersey, Chicago and Texas to enhance its domestic presence. In our view, the company’s plan of accelerating unit growth would boost long-term revenues.
Further, we are encouraged by the company’s initiatives, such as menu innovation, effective marketing strategy, unit expansion and remodeling programs, to reinvigorate its brands. We believe that the company is well poised to sustain the growth momentum driven by improved guest traffic and innovative offerings.
Red Robin currently has a Zacks Rank #3 (Hold). Better-ranked stocks in the same sector include Darden Restaurants, Inc. DRI, Cracker Barrel Old Country Store, Inc. CBRL and Sonic Corp. SONC. All these stocks sport a Zacks Rank #1 (Strong Buy).
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
RED ROBIN GOURM (RRGB): Free Stock Analysis Report
CRACKER BARREL (CBRL): Free Stock Analysis Report
SONIC CORP (SONC): Free Stock Analysis Report
DARDEN RESTRNT (DRI): Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
