Casual dining restaurant operator,
Red Robin Gourmet Burgers Inc.
) unit expansion remains unruffled amid an uncertain economy.
With the resurgence of consumer confidence, management has
accelerated unit openings and plans to unveil 20 units in 2013,
half of which have already been opened.
Red Robin, which currently boasts nearly 480 restaurants
across the United States and Canada, is set to unveil a
restaurant in Hagerstown, Md. on Oct 28. The restaurant,
positioned at Valley Mall next to Halfway Blvd., will mark the
company's entry into Hagerstown. We believe 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
Though for the past few years Red Robin was only focused on
strengthening its presence in the home market, California, citing
plenty of opportunities, recently it has started exploring other
potential markets. The Maryland market is newer and underserved
for the company with only 15 units, as compared with California
where it operates as many as 70 restaurants.
The restaurant industry contributes considerably toward the
flourishing economy of Maryland - one of the most populous and
wealthiest states in the U.S. Marylanders' inclination toward
eating out is favorable for the sector's growth, which, we
believe, has caught the attention of Red Robin. According to
National Restaurant Association, Maryland's restaurants are
expected to earn $10.3 billion in sales in 2013.
In late September, the restaurateur opened a unit in
Baltimore, Md. Positioned at the Inner Harbor area of downtown
Baltimore near Canton Crossing, the outlet will beef up the
restaurateur's U.S. portfolio.
Red Robin holds a Zacks Rank #1 (Strong Buy). Other players in
the restaurant industry that look attractive at the current
AFC Enterprises Inc.
Bob Evans Farms, Inc.
Chipotle Mexican Grill, Inc.
). All these stocks carry a Zacks Rank #2 (Buy).
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RED ROBIN GOURM (RRGB): Free Stock Analysis
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