Red Robin Gourmet Burgers Inc. (RRGB), which is looking to expand domestically, has recently announced that it will unveil a restaurant in Baton Rouge, LA on Dec 15. Located at Bluebonnet Boulevard at the Mall of Louisiana, the restaurant will offer signature food items like Royal Red Robin Burger and Bottomless Steak Fries as well as the Smoke & Pepper Burger, The D.G.B., Black & Bleu burger, Southern Charm Burger and The Big Sky Burger apart from the signature Freckled Lemonade.
The company will contribute the proceeds from the sale of its signature Freckled Lemonade during the grand opening week — Dec 15 to Dec 21 — 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 open 25 restaurants in fiscal 2014. Currently, the restaurateur operates 500 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 revenues over the long term.
Further, we are encouraged by the company’s initiatives including menu innovation, effective marketing strategy, unit expansion and remodeling programs to reinvigorate its brands. We believe the company is well poised to sustain the growth momentum driven by improved guest traffic and innovative offerings.
Red Robin currently carries a Zacks Rank #2 (Buy). Some well-performing stocks in the restaurant industry include BJ's Restaurants, Inc. (BJRI), Ruby Tuesday, Inc. (RT) and DineEquity, Inc. (DIN). All these stocks sport a Zacks Rank #1 (Strong Buy).
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