Zacks Investment Research lowered shares of Red Robin Gourmet Burgers, Inc. (NASDAQ:RRGB) from a buy rating to a sell rating in a report released on Thursday.

According to Zacks, “We note that 2016 was a tough year for Red Robin given the impact of acquiring lower-margin franchise restaurants and higher labor cost that hurt margins. Higher pre-opening and remodeling costs coupled with soft industry trends added to the woes. Even so, various sales-boosting initiatives undertaken should aid in turning around its business and gaining investor confidence. It is also set on growing its off-premise, online-ordering business via carry-out, delivery and catering. Notably, the company has mostly positive record of earnings surprises in recent quarters. Still, cost-related issues, soft consumer spending environment along with company’s limited global presence and domestic contraction raise concerns. A slowdown in its 2017 unit growth plan could further weigh on revenues. In fact, shares of the company underperformed the industry in the past one month. Estimates too have been going down ahead of its Q2 earnings release.”

Several other brokerages have also recently weighed in on RRGB. Maxim Group restated a buy rating and set a $80.00 price objective on shares of Red Robin Gourmet Burgers in a research note on Tuesday, May 23rd. Bank of America Corporation raised their price objective on Red Robin Gourmet Burgers from $80.00 to $85.00 and gave the company a buy rating in a research note on Thursday, May 25th. Wells Fargo & Company restated a market perform rating and set a $70.00 price objective on shares of Red Robin Gourmet Burgers in a research note on Thursday, May 25th. Canaccord Genuity upgraded Red Robin Gourmet Burgers from a hold rating to a buy rating and lifted their target price for the stock from $72.00 to $90.00 in a research note on Friday, May 26th. Finally, TheStreet upgraded Red Robin Gourmet Burgers from a c rating to a b- rating in a research note on Thursday, May 18th. Two investment analysts have rated the stock with a sell rating, five have issued a hold rating, four have given a buy rating and one has given a strong buy rating to the stock. The company has an average rating of Hold and a consensus target price of $75.30.

Shares of Red Robin Gourmet Burgers (NASDAQ:RRGB) traded up 0.32% during mid-day trading on Thursday, hitting $59.44. 23,350 shares of the stock were exchanged. The stock has a market capitalization of $764.93 million, a P/E ratio of 87.16 and a beta of 0.64. The stock’s 50 day moving average price is $64.68 and its 200-day moving average price is $58.03. Red Robin Gourmet Burgers has a 12-month low of $40.85 and a 12-month high of $74.11.

Red Robin Gourmet Burgers (NASDAQ:RRGB) last issued its quarterly earnings data on Tuesday, May 16th. The restaurant operator reported $0.89 earnings per share for the quarter, beating the consensus estimate of $0.58 by $0.31. Red Robin Gourmet Burgers had a return on equity of 8.73% and a net margin of 0.69%. The business had revenue of $418.60 million for the quarter, compared to analysts’ expectations of $416.48 million. During the same period last year, the business earned $1.27 EPS. The business’s revenue was up 4.1% on a year-over-year basis. On average, equities research analysts expect that Red Robin Gourmet Burgers will post $2.93 EPS for the current fiscal year.

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In other Red Robin Gourmet Burgers news, Director Glenn B. Kaufman sold 4,000 shares of the business’s stock in a transaction that occurred on Friday, May 26th. The stock was sold at an average price of $72.25, for a total value of $289,000.00. The sale was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this hyperlink. Also, Director Robert Blaine Aiken, Jr. sold 2,946 shares of the business’s stock in a transaction that occurred on Wednesday, May 31st. The shares were sold at an average price of $71.80, for a total value of $211,522.80. Following the completion of the sale, the director now owns 6,547 shares of the company’s stock, valued at approximately $470,074.60. The disclosure for this sale can be found here. Insiders own 2.66% of the company’s stock.

Several institutional investors have recently made changes to their positions in the stock. Great West Life Assurance Co. Can increased its position in shares of Red Robin Gourmet Burgers by 4.6% in the first quarter. Great West Life Assurance Co. Can now owns 17,280 shares of the restaurant operator’s stock worth $1,009,000 after buying an additional 763 shares in the last quarter. Monarch Partners Asset Management LLC purchased a new stake in shares of Red Robin Gourmet Burgers during the first quarter valued at $4,726,000. Wells Fargo & Company MN boosted its stake in shares of Red Robin Gourmet Burgers by 2,125.9% in the first quarter. Wells Fargo & Company MN now owns 212,862 shares of the restaurant operator’s stock valued at $12,442,000 after buying an additional 203,299 shares during the last quarter. Russell Investments Group Ltd. boosted its stake in shares of Red Robin Gourmet Burgers by 206.1% in the first quarter. Russell Investments Group Ltd. now owns 28,075 shares of the restaurant operator’s stock valued at $1,641,000 after buying an additional 18,904 shares during the last quarter. Finally, Kalmar Investments Inc. DE purchased a new stake in shares of Red Robin Gourmet Burgers during the first quarter valued at $3,305,000.

Red Robin Gourmet Burgers Company Profile

Red Robin Gourmet Burgers, Inc, together with its subsidiaries, primarily develops, operates, and franchises full-service restaurants in North America and focuses on serving selection of gourmet burgers. The Company’s menu features a line of gourmet burgers, which it makes from ground beef, as well as its line of Red’s Tavern Double Burgers and its Red Robin’s line of half-pound Angus beef burgers with various toppings.

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Analyst Recommendations for Red Robin Gourmet Burgers (NASDAQ:RRGB)

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