Red Robin's Burger Works in Colorado - Analyst Blog


Casual dining restaurant operator Red Robin Gourmet Burgers Inc. ( RRGB ) is now highly focused on expanding the presence of its smaller prototype restaurant concept, Red Robin's Burger Works. The restaurateur is set to open a Burger Works unit in Fort Collins, CO.

The opening will mark the debut of Burger Works in Fort Collins. The restaurant, positioned at the Colorado State University, will attract customers with its premium offerings like Whiskey River BBQ burger, Royal Red Robin burger and Banzai burger and the contemporary ambience.

This opening marks the six Burger Works prototype restaurants currently operating in some distinct areas of the U.S. and plans to open more Red Robin's Burger Works units in 2014. These expansions are in line with the company's intention to accelerate its growth in non-traditional locations and also boost return on investment.

Apart from this unit, Red Robin also operates a traditional restaurant in Fort Collins. It is a Home Rule Municipality of Larimer County, Colo. The city has an established restaurant industry and boasts some of the major restaurateurs such as McDonald's Corp. ( MCD ) and Burger King Worldwide, Inc. ( BKW ).

In order to avoid market saturation, Red Robin is establishing its presence in several untapped locations in the domestic market. The Colorado market is newer for the company with only 20 units, versus California where it operates 69 traditional restaurants.

According to the National Restaurant Association, the restaurant industry in Colorado plays a pivotal role in the state's revenues. Per this research site, the state's restaurants are expected to record $9.5 billion in sales in 2013. We believe the high demand and spending ability of the state encouraged Red Robin to open this outlet which will boost the company's sales.

Red Robin holds a Zacks Rank #2 (Buy). Investors interested in the restaurant industry may consider stocks like Cracker Barrel Old Country Store, Inc. ( CBRL ) which carries a Zacks Rank #2.

BURGER KING WWD (BKW): Free Stock Analysis Report

CRACKER BARREL (CBRL): Free Stock Analysis Report

MCDONALDS CORP (MCD): Free Stock Analysis Report

RED ROBIN GOURM (RRGB): Free Stock Analysis Report

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

This article appears in: Investing , Business , Stocks

Referenced Stocks: BKW , CBRL , MCD , RRGB

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