Red Robin Gourmet Burgers Inc. RRGB recently announced that it will unveil a restaurant in Milford, CT on Jul 13. The outlet will be located at 1201 Boston Post Road, across the food court on the second floor of the Westfield Connecticut Post mall.
Apart from offering its signature items like Royal Red Robin Burger, Bottomless Steak Fries and more than 100 different toppings for guests to customize their favorite burger, the new Red Robin Gourmet restaurant will also offer Freckled Lemonade. The company will contribute the proceeds from the sale of its signature Freckled Lemonade during the grand opening week — Jul 13 to Jul 19 — to the non-profit organization, Alex's Lemonade Stand Foundation. The menu at the newest restaurant will also include a variety of salads, entrees, soups and wraps.
Red Robin’s unit expansion continues despite economic uncertainty in the domestic market. 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 more than 500 outlets 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. The company’s plan of accelerating unit growth is expected to further boost revenues. Notably, besides the 6,000 square foot standard Red Robin restaurants, the company has 4,000 square foot mid-size units as well as 1,800 square foot Burger Works. The mid-size units are doing well and the company expects these to play a crucial role in its growth, going forward. Based on the financial returns of these mid-sized units and the availability of desired locations, the company intends to open more of these in 2015.
Further, we are encouraged by Red Robin’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 positioned to sustain the growth momentum driven by improved guest traffic and innovative offerings.
Red Robin currently carries a Zacks Rank #2 (Buy). Other well-ranked stocks in the same sector include Dave & Buster's Entertainment, Inc. PLAY, Zoe's Kitchen, Inc. ZOES and BJ's Restaurants, Inc. BJRI. Dave & Buster's Entertainment and Zoe's Kitchen sport a Zacks Rank #1 (Strong Buy), BJ's Restaurants carries a Zacks Rank #2.
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