RRGB

Red Robin Gourmet Burgers Inc

Consumer


Presented:09/27/2017
Price:$65.25
Cap:$0.85B
Current Price:$5.76
Cap:$0.09B

Presented

Date09/27/2017
Price$65.25
Market Cap$0.85B
Ent Value$1.11B
P/E Ratio101.95x
Book Value$28.78
Div Yield0%
Shares O/S13.01M
Ave Daily Vol286,033
Short Int45.17%

Current

Price$5.76
Market Cap$0.09B
Red Robin Gourmet Burgers, Inc. engages in the development, operation, and franchise of full-service restaurants. It serves variety of salads, soups, appetizers, entrees, desserts, and signature beverages. The company was founded in September 1969 and is headquartered in Greenwood Village, CO.

Publicly traded companies mentioned herein: The Cheesecake Factory Inc (CAKE), Red Robin Gourmet Burgers (RRGB)

Highlights

The presenter is short shares of Red Robin (RRGB), stating that we are near an inflection point of negative comps and sales growth. RRGB trades at a meaningful multiple premium to peers due to the perception of stable growth, but the presenter thinks a combination of declining traffic trends and more robust competition will pressure this perception. As sales growth slows and comps inflect negative, RRGB could see multiple compression accompanying an earnings miss. The presenter thinks consensus expectations of 20% earnings growth in 2018 are unrealistic, instead modelling flat earnings.

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Idea Discussion

Commentor 1 - 2 weeks ago

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