DB:RRN

Stock Analysis Report

Red Robin Gourmet Burgers

Executive Summary

Red Robin Gourmet Burgers, Inc., together with its subsidiaries, develops, operates, and franchises full-service and casual-dining restaurants.

Snowflake

Fundamentals

Fair value with worrying balance sheet.


Similar Companies

Share Price & News

How has Red Robin Gourmet Burgers's share price performed over time and what events caused price changes?


Latest Share Price and Events


Market Performance


7 Day Return

-4.8%

RRN

14.0%

DE Hospitality

4.4%

DE Market


1 Year Return

-14.8%

RRN

-21.1%

DE Hospitality

1.6%

DE Market

Return vs Industry: RRN exceeded the German Hospitality industry which returned -21.1% over the past year.

Return vs Market: RRN underperformed the German Market which returned 1.6% over the past year.


Shareholder returns

RRNIndustryMarket
7 Day-4.8%14.0%4.4%
30 Day-7.8%15.6%0.8%
90 Day3.7%27.9%2.3%
1 Year-14.8%-14.8%-15.7%-21.1%4.8%1.6%
3 Year-27.5%-27.5%13.6%-1.6%18.9%8.6%
5 Year-29.9%-29.9%34.5%7.8%43.7%24.1%

Price Volatility Vs. Market

How volatile is Red Robin Gourmet Burgers's share price compared to the market and industry in the last 5 years?


Simply Wall St News

No news available

Valuation

Is Red Robin Gourmet Burgers undervalued compared to its fair value and its price relative to the market?

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Undervalued: RRN (€28) is trading below our estimate of fair value (€62.61)

Significantly Undervalued: RRN is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: RRN is unprofitable, so we can't compare its PE Ratio to the Hospitality industry average.

PE vs Market: RRN is unprofitable, so we can't compare its PE Ratio to the German market.


Price to Earnings Growth Ratio

Low PEG Ratio: Insufficient data to calculate RRN's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: RRN is good value based on its PB Ratio (1.1x) compared to the DE Hospitality industry average (2.6x).


Next Steps

Future Growth

How is Red Robin Gourmet Burgers forecast to perform in the next 1 to 3 years based on estimates from 11 analysts?

151.9%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: RRN is forecast to remain unprofitable over the next 3 years.

Earnings vs Market: RRN is forecast to remain unprofitable over the next 3 years.

High Growth Earnings: RRN is forecast to remain unprofitable over the next 3 years.

Revenue vs Market: RRN's revenue is expected to decline over the next 3 years (-0.5% per year).

High Growth Revenue: RRN's revenue is forecast to decline over the next 3 years (-0.5%).


Earnings per Share Growth Forecasts


Future Return on Equity

High Future ROE: RRN's Return on Equity is forecast to be low in 3 years time (4.4%).


Next Steps

Past Performance

How has Red Robin Gourmet Burgers performed over the past 5 years?

-36.8%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: RRN is unprofitable, and losses have increased over the past 5 years at a rate of -36.8% per year.

Accelerating Growth: Unable to compare RRN's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: RRN is unprofitable, making it difficult to compare its past year earnings growth to the Hospitality industry (-28.4%).


Return on Equity

High ROE: RRN has a negative Return on Equity (-1.98%), as it is currently unprofitable.


Return on Assets

ROA vs Industry: RRN is currently unprofitable, so its Return on Assets is negative.


Return on Capital Employed

ROCE Improving: RRN is currently unprofitable, so its Return on Capital Employed is negative.


Next Steps

Financial Health

How is Red Robin Gourmet Burgers's financial position?


Financial Position Analysis

Short Term Liabilities: RRN's short term assets ($81.6M) do not cover its short term liabilities ($195.7M)

Long Term Liabilities: RRN's short term assets (81.6M) do not cover its long term liabilities (694.6M)


Debt to Equity History and Analysis

Debt Level: RRN's debt to equity ratio (49.1%) is considered high

Reducing Debt: RRN's debt to equity ratio has increased from 35.3% to 49.1% over the past 5 years.

Debt Coverage: RRN's debt is well covered by operating cash flow (50.2%).

Interest Coverage: RRN is unprofitable, therefore interest payments are not well covered by earnings.


Balance Sheet

Inventory Level: RRN has a high level of physical assets or inventory.

Debt Coverage by Assets: RRN's debt is not covered by short term assets (assets are 0.4x debt).


Next Steps

Dividend

What is Red Robin Gourmet Burgers's current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

companyn/amarketbottom25%1.4%markettop25%3.8%industryaverage6.1%forecastin3Years0%

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: Unable to evaluate RRN's dividend yield against the bottom 25% of dividend payers, as the company has not reported any payouts.

High Dividend: Unable to evaluate RRN's dividend yield against the top 25% of dividend payers, as the company has not reported any payouts.

Stable Dividend: Insufficient data to determine if RRN's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if RRN's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of RRN's dividend in 3 years as they are not forecast to pay a notable one for the German market.


Next Steps

Management

What is the CEO of Red Robin Gourmet Burgers's salary, the management and board of directors tenure and is there insider trading?

0.8yrs

Average management tenure


CEO

Red Robin Gourmet Burgers has no CEO, or we have no data on them.


Management Age and Tenure

0.8yrs

Average Tenure

51yo

Average Age

Experienced Management: RRN's management team is not considered experienced ( 0.8 years average tenure), which suggests a new team.


Board Age and Tenure

3.2yrs

Average Tenure

60.5yo

Average Age

Experienced Board: RRN's board of directors are considered experienced (3.2 years average tenure).


Insider Trading

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

BuyUS$45,94212 Jun 19
Glenn Kaufman
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares2,000
Max PriceUS$23.41
BuyUS$4,736,92404 Jun 19
Vintage Capital Management, LLC
EntityCompany
Shares203,336
Max PriceUS$23.71
BuyUS$9,458,63104 Jun 19
Vintage Capital Management, LLC
EntityCompany
Shares392,000
Max PriceUS$27.55
BuyUS$14,479,51609 May 19
Vintage Capital Management, LLC
EntityCompany
Shares500,000
Max PriceUS$30.12

Ownership Breakdown


Management Team

  • Michael Kaplan (50yo)

    Senior VP

    • Tenure: 6yrs
    • Compensation: US$698.36k
  • Denny Post (61yo)

    • Tenure: 0.5yrs
    • Compensation: US$3.11m
  • Dean Cookson (49yo)

    Senior VP & Chief Information Officer

    • Tenure: 2.1yrs
  • Guy Constant (54yo)

    Executive VP & COO

    • Tenure: 0.8yrs
    • Compensation: US$2.21m
  • Lynn Schweinfurth (52yo)

    Executive VP

    • Tenure: 0.8yrs
  • Jonathan Muhtar (47yo)

    Executive VP & Chief Concept Officer

    • Tenure: 3.8yrs
    • Compensation: US$1.02m
  • Michael Buchmeier

    Senior VP & Chief People Officer

    • Tenure: 0.8yrs

Board Members

  • Glenn Kaufman (51yo)

    Independent Director

    • Tenure: 9.2yrs
    • Compensation: US$178.67k
  • Tom Conforti (60yo)

    Independent Director

    • Tenure: 0.2yrs
  • Pattye Moore (61yo)

    Chairman

    • Tenure: 9.7yrs
    • Compensation: US$264.96k
  • Dave Pace (60yo)

    Independent Director

    • Tenure: 0.2yrs
  • Steve Lumpkin (64yo)

    Independent Director

    • Tenure: 3.2yrs
    • Compensation: US$193.11k
  • Aylwin Lewis (64yo)

    Independent Director

    • Tenure: 1.4yrs
    • Compensation: US$254.09k
  • Cammie Dunaway (56yo)

    Independent Director

    • Tenure: 5.3yrs
    • Compensation: US$187.46k
  • Gerard Hart (61yo)

    Independent Director

    • Tenure: 0.2yrs
  • Stuart Oran (69yo)

    Independent Director

    • Tenure: 9.6yrs
    • Compensation: US$179.96k
  • Kalen Holmes (53yo)

    Independent Director

    • Tenure: 3.2yrs
    • Compensation: US$192.46k

Company Information

Red Robin Gourmet Burgers, Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Red Robin Gourmet Burgers, Inc.
  • Ticker: RRN
  • Exchange: DB
  • Founded: 1969
  • Industry: Restaurants
  • Sector: Consumer Services
  • Market Cap: US$404.718m
  • Listing Market Cap: US$366.715m
  • Shares outstanding: 12.97m
  • Website: https://www.redrobin.com

Number of Employees


Location

  • Red Robin Gourmet Burgers, Inc.
  • 6312 South Fiddler’s Green Circle
  • Suite 200 North
  • Greenwood Village
  • Colorado
  • 80111
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
RRGBNasdaqGS (Nasdaq Global Select)YesCommon StockUSUSDJul 2002
RRNDB (Deutsche Boerse AG)YesCommon StockDEEURJul 2002

Biography

Red Robin Gourmet Burgers, Inc., together with its subsidiaries, develops, operates, and franchises full-service and casual-dining restaurants. The company's restaurants primarily offer burgers; various ap ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/15 21:29
End of Day Share Price2019/10/15 00:00
Earnings2019/07/14
Annual Earnings2018/12/30


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.