Red Robin Gourmet Burgers, Inc. (NASDAQ:RRGB)

CAPS Rating: 3 out of 5

The Company develops and operates casual-dining restaurants.

Recs

1
Player Avatar EldrehadsPicks (79.60) Submitted: 8/11/2007 3:51:26 PM : Outperform Start Price: $41.64 RRGB Score: -10.77

Given the history of growth and the success of the concept, I think Mr. Market -- due to the aftermath of the Snyder debacle followed by a few operational miscues -- is handing us some great growth potential at a discount price.
Please see my blog for a more detailed analysis.

Report this Post 8 Replies
Member Avatar TMFCop (85.03) Submitted: 8/13/2007 8:38:25 PM
Recs: 0

OMG! One day, and already you're pick is down 5%! Sell, sell, SELL! ;> Congratulations, Russell, on this gutsy endeavor. I wish you much success.

Member Avatar TMFEldrehad (99.99) Submitted: 8/14/2007 4:30:02 PM
Recs: 0

Tell me about it! While I was researching the pick I saw a 5% gain in one day and I'm thinking, "Wait! You're not supposed to do that until after I post my pick!"Mr. Market doesn't usually listen to me.

Member Avatar TMFselzhanik (99.52) Submitted: 8/14/2007 5:14:27 PM
Recs: 0

At least this way you won't have subscribers complaining about a dreaded "Eldrehad's Picks" pop!You should ask the CAPS powers that be if they could analyze how many players put a thumbs up on RRGB within 15 minutes of reading your blog post.

Member Avatar TDRH (99.64) Submitted: 8/18/2007 11:50:56 PM
Recs: 1

Congratulations on your return to the top of the charts. I admire your willingness to stick your neck out for long term growth in today's uncertain times. That being said I am surprised at your choice of a restaurant/consumer discretionary in a saturated industry. Realize that you are looking long term, 5+ years, but I do not share your positive outlook for this company.In general I am negative on consumer discretionary, retail, & travel. Consumers are being pinched by: 1) Rising energy prices.2) Rising health care costs.3) Rising cost of education.4) In some areas, declining home values. (Can no longer use their houses as ATM machines.) 5) Failure of the consumer's real income to keep up with overall inflation. In these conditions only the strongest will survive and none will thrive. Understand that we are at historic lows as far as unemployment, and interest rates are still relatively low but there appears to be no light at the end of the tunnel. The company has experienced higher costs due to increased labor and food costs, and offered little in their recent report to indicate they had a plan to reduce their costs. Their food is overpriced in a a saturatedmarket, and their dining experience is not exceptional. Hope I am off base, the company thrives, economy continues to grow, but for the next two years I do not see it.

Member Avatar TMFBent (99.81) Submitted: 8/21/2007 2:38:04 PM
Recs: 0

FYI, there is some more debate on this here:http://caps.fool.com/Blogs/ViewPost.aspx?bpid=14597&t=01000000000103882559#comments

Member Avatar bflochp (87.70) Submitted: 8/31/2007 6:41:48 PM
Recs: 0

I seem to remember the red robin burger company identified a ways back, and it tanked. What would resurrect it at this tome?

Member Avatar squrl020 (< 20) Submitted: 11/26/2007 10:57:06 AM
Recs: 0

I must say that Red Robin does not peak my interest as a consumer, nor as an investor. On the consumer side, their food is alright, but for the price, I'd rather be at Ruby's or Panera. The presentation and service were decent, but nothing spectacular, even though it should be, since i live in a nicely groomed city(Towson)where plenty of people want to go someplace nice. Compared to the changes being made by other companies in the same market, Red Robin has not done much to keep pace.

Member Avatar Gtrinvestor (99.76) Submitted: 11/30/2007 5:21:24 PM
Recs: 1

While I certainly admire you letting it all hang out in this venture, I respectfully think that this inagural pick will probably not fair too well. It might do well for the next year or so, but in the next 3 - 5 years, I'm guessing restructuring, a few C suite execs leaving to "pursue other interests" and suddenly Red Robin Burgers and pizza.Seriously, I appreciate getting some thumbs up recs from your side along with some more well thought out reasonings than a typical pitch.Fool Onps, On a totally unrelated note, I hope Ohio State goes to the BCS championship game again this year only to get blown out of the water yet again, and to further prove how over rated they and their whole division are. Go SEC.

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