NasdaqGS:RRGB

Stock Analysis Report

Executive Summary

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


Snowflake Analysis

Moderate growth potential and overvalued.


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

Stable Share Price: RRGB has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

-14.0%

RRGB

-11.4%

US Hospitality

-7.4%

US Market


1 Year Return

6.1%

RRGB

-4.5%

US Hospitality

10.5%

US Market

Return vs Industry: RRGB exceeded the US Hospitality industry which returned -4.5% over the past year.

Return vs Market: RRGB underperformed the US Market which returned 10.5% over the past year.


Shareholder returns

RRGBIndustryMarket
7 Day-14.0%-11.4%-7.4%
30 Day-7.0%-7.7%-3.6%
90 Day17.1%-7.3%-0.6%
1 Year6.1%6.1%-2.0%-4.5%12.8%10.5%
3 Year-33.8%-33.8%18.9%11.0%37.4%28.6%
5 Year-61.4%-61.4%30.7%16.7%61.3%43.6%

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

Valuation

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

1.1x

Price to Book (PB) ratio


Share Price vs. Fair Value

Below Fair Value: RRGB ($31.3) is trading above our estimate of fair value ($27.78)

Significantly Below Fair Value: RRGB is trading above our estimate of fair value.


Price To Earnings Ratio

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

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


Price to Earnings Growth Ratio

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


Price to Book Ratio

PB vs Industry: RRGB is good value based on its PB Ratio (1.1x) compared to the US Hospitality industry average (2x).


Next Steps

Future Growth

How is Red Robin Gourmet Burgers forecast to perform in the next 1 to 3 years based on estimates from 10 analysts?

72.8%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: RRGB is forecast to become profitable over the next 3 years, which is considered faster growth than the savings rate (1.7%).

Earnings vs Market: RRGB is forecast to become profitable over the next 3 years, which is considered above average market growth.

High Growth Earnings: RRGB's is expected to become profitable in the next 3 years.

Revenue vs Market: RRGB's revenue is expected to decline over the next 3 years (-1.4% per year).

High Growth Revenue: RRGB's revenue is forecast to decline over the next 3 years (-1.4% per year).


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: RRGB's Return on Equity is forecast to be low in 3 years time (2.7%).


Next Steps

Past Performance

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

-43.2%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: RRGB is currently unprofitable.

Growing Profit Margin: RRGB is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: RRGB is unprofitable, and losses have increased over the past 5 years at a rate of -43.2% per year.

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

Earnings vs Industry: RRGB is unprofitable, making it difficult to compare its past year earnings growth to the Hospitality industry (-8.2%).


Return on Equity

High ROE: RRGB has a negative Return on Equity (-2.95%), as it is currently unprofitable.


Next Steps

Financial Health

How is Red Robin Gourmet Burgers's financial position?


Financial Position Analysis

Short Term Liabilities: RRGB's short term assets ($75.2M) do not cover its short term liabilities ($197.6M).

Long Term Liabilities: RRGB's short term assets ($75.2M) do not cover its long term liabilities ($680.2M).


Debt to Equity History and Analysis

Debt Level: RRGB's debt to equity ratio (51.4%) is considered high.

Reducing Debt: RRGB's debt to equity ratio has increased from 41.4% to 51.4% over the past 5 years.


Balance Sheet

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

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


Cash Runway Analysis

For companies that have on average been loss making in the past we assess whether they have at least 1 year of cash runway.

Stable Cash Runway: RRGB has been profitable on average in the past, therefore cash runway is not a concern.

Forecast Cash Runway: RRGB has been profitable on average in the past, therefore cash runway is not a concern.


Next Steps

Dividend

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


Dividend Yield vs Market

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

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


Stability and Growth of Payments

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

Growing Dividend: Insufficient data to determine if RRGB'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 RRGB's dividend in 3 years as they are not forecast to pay a notable one for the US market.


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

1.1yrs

Average management tenure


CEO

Paul J. Murphy (64yo)

0.3yrs

Tenure

Mr. Paul J. B. Murphy, III, has been President, Chief Executive Officer and Director of Red Robin Gourmet Burgers, Inc. since October 03, 2019. Mr. Murphy was the Executive Chairman at Noodles & Company si ...


Leadership Team

NamePositionTenureCompensationOwnership
Michael Kaplan
Senior VP6.3yrsUS$698.36k0.064% $289.6k
Denny Post
0.8yrsUS$3.11m0.11% $517.5k
Jonathan Muhtar
Executive VP & Chief Concept Officer4.2yrsUS$1.02m0.048% $218.8k
Paul J. Murphy
President0.3yrsno data0.077% $351.8k
Lynn Schweinfurth
Executive VP1.1yrsno data0.013% $60.0k
Michael Buchmeier
Senior VP0.08yrsno data0.024% $107.7k
Dean Cookson
Senior VP & Chief Information Officer2.4yrsno datano data

1.1yrs

Average Tenure

51yo

Average Age

Experienced Management: RRGB's management team is not considered experienced ( 1.1 years average tenure), which suggests a new team.


Board Members

NamePositionTenureCompensationOwnership
Paul J. Murphy
President0.3yrsno data0.077% $351.8k
Glenn Kaufman
Independent Director9.5yrsUS$178.67k0.21% $955.9k
Thomas Conforti
Independent Director0.5yrsno data0.080% $361.9k
David Pace
Independent Chairman0.3yrsno data0.085% $386.6k
Steven Lumpkin
Independent Director3.5yrsUS$193.11k0.043% $193.9k
Cambria Dunaway
Independent Director5.7yrsUS$187.46k0.068% $307.4k
Gerard Hart
Independent Director0.5yrsno data0.060% $274.8k
Stuart Oran
Independent Director9.9yrsUS$179.96k0.076% $346.6k
Kalen Holmes
Independent Director3.5yrsUS$192.46k0.043% $193.9k
Allison Page
Independent Director0yrsno datano data

3.5yrs

Average Tenure

60yo

Average Age

Experienced Board: RRGB's board of directors are considered experienced (3.5 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: RRGB insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

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: RRGB
  • Exchange: NasdaqGS
  • Founded: 1969
  • Industry: Restaurants
  • Sector: Consumer Services
  • Market Cap: US$455.218m
  • Shares outstanding: 12.94m
  • 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 appetizers, salads, soups, seafood, and other entrees; and desserts, milkshakes, alcoholic and non-alcoholic specialty drinks, cocktails, wine, and beers. As of June 13, 2019, it operated approximately 560 Red Robin restaurants across the United States and Canada, including locations operating under franchise agreements. The company was founded in 1969 and is headquartered in Greenwood Village, Colorado. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/26 00:28
End of Day Share Price2020/02/25 00:00
Earnings2019/10/06
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.