Seattle-based casual dining restaurateur,
Red Robin Gourmet Burgers Inc.
) which operates as many as 482 units in the U.S. and Canada, is
geared to expand its presence in the lucrative domestic
Recently, Red Robin declared that it is set to unveil a
restaurant in St. Petersburg, Fla. The restaurant, positioned at
Tyrone Mall, marks the company's entry into the St. Petersburg
We believe that the spacious unit with its signature food
offerings like Royal Red Robin Burger and Red Robin's Freckled
Lemonade will add to the company's sales.
In the past few years, Red Robin strengthened its presence in
the markets of California citing plenty of opportunities.
However, it is now venturing into other potential markets to
avoid market saturation. Within the under-served locations,
Florida needs a special mention where Red Robin boasts only 13
restaurants while it operates 70 units in California.
The restaurant industry in Florida is considered as one of the
largest in the U.S. High demand and high spending ability in
Florida, 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 $33.3 billion in sales in 2013. We consider
this opening favorable for Red Robin's further expansion plans in
Apart from Florida, the company unveiled a restaurant in
another underserved market of Maryland where it operates only 15
units. The restaurateur remains on track to open 20 units in the
U.S. in 2013, out of which nine have already been opened.
Red Robin holds a Zacks Rank #1 (Strong Buy). Other players in
the restaurant industry that look attractive at the current
AFC Enterprises Inc.
Jack in the Box Inc.
CEC Entertainment Inc.
). All these restaurateurs carry a Zacks Rank #2 (Buy).
AFC ENTERPRISES (AFCE): Free Stock Analysis
CEC ENTERTANMNT (CEC): Free Stock Analysis
JACK IN THE BOX (JACK): Free Stock Analysis
RED ROBIN GOURM (RRGB): Free Stock Analysis
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