Red Robin Expands in Florida - Analyst Blog

By Zacks Equity Research,

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In order to expand in the lucrative domestic market, Greenwood Village, Colo.-based casual dining restaurateur, Red Robin Gourmet Burgers Inc. ( RRGB ) will shortly unveil a restaurant in the Greater Orlando area. Currently, the company operates 495 restaurants across the United States and Canada.

The company also announced that it will contribute the sales from its signature Freckled Lemonade during the grand opening week, which will start from Mar 3 to Mar 9, to the non-profit entity - Alex's Lemonade Stand Foundation. Positioned on the Rinehart Road, the spacious unit offering signature food items like Royal Red Robin Burger and Bottomless Steak Fries will add to the company's sales.

In order to avoid market saturation, Red Robin is now venturing into several under-served locations with solid potential, especially Florida where the restaurateur currently operates only 16 restaurants.

The restaurant industry in Florida is considered to be one of the largest in the U.S. High demand and high spending ability of one of the most populous and wealthiest states in the U.S. are favorable to the sector's growth. According to the National Restaurant Association, the state's restaurants are expected to record sales growth of 4.5% in 2014. We consider this opening favorable for Red Robin's further expansion plans in the state.

Red Robin's unit expansion remains unruffled amid an uncertain economy. With the resurgence of consumer confidence, management has accelerated its unit openings and planned to open 20 Red Robin units in 2014.

Red Robin has a Zacks Rank #3 (Hold). Some better-ranked stocks in the restaurant industry include Fiesta Restaurant Group, Inc. ( FRGI ), Brinker International, Inc. ( EAT ) and Buffalo Wild Wings Inc. ( BWLD ). While Fiesta Restaurant sports a Zacks Rank #1 (Strong Buy), Brinker and Buffalo Wild Wings carry a Zacks Rank #2 (Buy).

BUFFALO WLD WNG (BWLD): Free Stock Analysis Report

BRINKER INTL (EAT): Free Stock Analysis Report

FIESTA RESTRNT (FRGI): Free Stock Analysis Report

RED ROBIN GOURM (RRGB): Free Stock Analysis Report

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Zacks Investment Research

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

This article appears in: Investing , Business , Stocks
Referenced Stocks: BWLD , EAT , FRGI , RRGB

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