Red Robin Gourmet Burgers, Inc. (RRGB)

Good co

Zalozeno na vyberu Eldrehada na jeho picks v soucasnosti je -20 bodu se svym doporucenim. Uvidime jak do budoucna.

Mmm...gourmet burgers...

Will recover from earnings drop

Always jammed pact, its got a niche for hosting parties and fun for the whole family.

Solid company and people may not spend much on christmas but they will treat themselves to a unique eating experience. This francise is growing. Offers a new experience in many new markets.

Dog of a business

High Debt, negative Free Cash Flow, earnings expected to be flat for the next two years (I expect it will be worse). The only thing that scares me about this underperform rating is that the stock is already down 70% this year. If you figure in debt, RRGB has EV/E of about 13, given the growth, I figure this number should be closer to 7-9.

Red Robin is a well run west coast company that is expanding on a national level. RRGB stands out as a top restaurant on the west coast and will take market share wherever they go. Even though economy is down now people will still eat out maybe a little less than usual. The restaurant is one I frequent has a menu

that serves good burgers salads & drinks service is consistant and fairly quick. This is still an affordable treat in these times. Buy RRGB now whlile price is near its 52 week low...........Red Robin Yummm......................

tdrh

They have recently repurchased stock and plan to expand, as well as for the first time have locked in burger prices. I definitely think they will outperform.

Reckon they're going to miss forecasts for 2008 and get punished.

On paper, Red Robin looks okay on paper. All their financials are on the positive side today. However, the company has weak liquidity (quick ratio .20, current .50), but it keeps expanding, expanding, expanding with new resteraunts. With the rising cost of raw materials and the general costs associated with expanding, at some point it will impact the financial bottom line.

Also working against Red Robin is the fact that consumers pocketbooks are being squeezed. I always thought Red Robins prices were a little high given the quality of their food, but it was okay to eat there when I had extra income. I think it is a safe bet to say that Red Robin will likely have to increase prices due to compensate for increased costs for meat, flour, etc. Given that consumers are already feeling squeezed, traffic will likely slow at Red Robin.

Nothing special here

bad debt. who wants a middle of the road franchise like this? much debt to cash. not sure but the current ratio may be very scary to all you going long.

This is at a 52 week low.

This is a chain restaurant that does better than average hamburgers. It is also one of TMFEldrehad's picks for his long only portfolio. I just got a better start price is all.

This company grew too fast too soon. In some parts of the country(NC, MD, VA, AL) they are seeing a great deal of manager turnover compared to the home base in Colorado. Consistency has gotten awful in those faster expanding parts of the country. Any time in the restaurant industry that you see this happening lookout because it is the beginning of the end. Attach this to the problems of $9-$10 6 oz. burgers, lower priced competition raging in the burger market, down turning economy and you have a recipe(no pun intended) for disaster. I'll admit that I like their fries, but there is not much else on the menu outside of burgers that looks very appealing(window dressing) and as I said the price is outrageous for a 6oz.(I asked) burger. Five Guys and Fat Burger offer a 1/2 pound burger that is fresh beef for 1/2 the price of RRGB. I have talked to other people who have been to this place. They say it was a place to take the kids, burgers good, but too pricey and service was hit and miss. When asked if they would go back they said probably not. One and done. This thing is going down.

Quality company that put the customer first, also good community services

Though I agree with the attractive balance sheet, I have a personal problem with this company. Being 21 and only following the stock market for a couple years I've come to rely on advice from other people pertaining to what to "pick". In the case of Red Robin I'm going to have to go against the norm.

A couple summers ago I had the pleasure of working there for the summer. I loved the food there, but took issue with two things.

First off, the price of a burger there is a bit outrageous. You will pay 9 bucks for a burger and fries that comes in a plastic basket. To some people living in NY/SF/LA that may not seem too bad. In fact that price seems reasonable for a restaurants that you sit down in for a while. Unfortunately, most customers couldn't get over the fact that they were getting a burger and fries, packagked like you were at Mom and Pop's. Though this is one of their "themes" I feel it is more of a negative than a plus. Other than people expressing this point of view to me, it was also common that people would request their food be on a plate, meaning that many did not like the plastic basket.

Another problem I had was with the national managment. Occasionally a regional or national director would come in and start to change how we did things. To a cook, that is a huge slap in the face. The biggest problem they had was with how people ordered burgers. If people requested them well done we were instructed to cook it normal. Living in a yuppie town, many people complained of that, forcing us to re-cook them and waste the previous fixins. I've always felt that a decision like that should be less decentralized but they did not, which in turn angered the cooks. Though they want to have every restaurant serve the same style food, the issue of undercooked meat should take back seat to a perceived image.

Enough soapbox, class in 9 hours.