In a tough operating environment, restaurants are embracing more and more new menu concepts to boost comps growth. In keeping with the trend, Red Robin Gourmet Burgers Inc. (RRGB) has added a milkshake named Beam-N-Bacon Boozy Shake and the Southern Charm Burger to its menu offering.
The limited-time items will be available only till Nov 2. The Southern Charm Burger, which was inspired by Red Robin's 2014 South Beach Wine and Food Festival Golden Robin award winner, features Angus beef patty, candied bacon, barbecue sauce, cheese, red onions, lettuce and mayonnaise.
Red Robin's Beam-N-Bacon Boozy Shaken also includes bacon along with Jim Beam Maple Bourbon, caramel and vanilla ice cream. With the Beam-N-Bacon Boozy Shake Red Robin intends to capitalize on the growing popularity of bourbon-infused menu items and mainly targets adult customers.
The restaurant chain has brought back the Spiced Pumpkin Pie Milkshake, another seasonal menu item. This non-alcoholic milkshake is made with pumpkin pie filling, vanilla soft serve, nutmeg and graham cracker crumbs. The restaurateur has also reintroduced Fireball Peach Smash cocktail — a sweet and sour cocktail — containing Cinnamon Whisky, peach puree, lemon wedges and fresh mint.
Red Robin has also included a new variety of wings — Red's Bold Boneless Wings — made with tender chicken breast offering choice of sauces like Buzz Sauce, Banzai or Whiskey River BBQ. Red Robin has also added Sweet-N-Stout Bite-Tini — chocolate brownie with chocolate chips, whipped cream and caramel — to its autumn dessert menu.
With the aforementioned menu innovations, it seems that the company is seeking to boost traffic at its restaurants, which is expected to drive comps.
The Zacks Rank #5 (Strong Sell) company has been struggling against the sluggish macroeconomic environment. The company’s last reported quarter results fell substantially short of analysts’ expectations as comps suffered and expenses increased primarily due to escalating commodity prices. In fact, Red Robin’s menu consists mainly of bacon, pork and beef, and prices of these commodities have risen to all-time highs.
Other Stocks that Warrant a Look
Some better-ranked stocks in the restaurant industry include BJ's Restaurants, Inc. (BJRI), Chipotle Mexican Grill, Inc. (CMG) and Jamba, Inc. (JMBA). All these stocks sport a Zacks Rank #1 (Strong Buy).
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