Zacks Investment Research downgraded shares of Red Robin Gourmet Burgers, Inc. (NASDAQ:RRGB) from a buy rating to a hold rating in a research note published on Wednesday.

According to Zacks, “Red Robin’s shares outpaced the industry year to date. Menu innovation, focus on increasing service speed, effective marketing and remodeling program to reinvigorate brands have got the growth story back on track, after a disappointing 2016. Though the current challenging retail environment continued affecting business in first-half 2017, initiatives undertaken to improve sales and regain market share as the year progresses bode well. Moreover, Red Robin has a mostly positive record of earnings surprises in recent quarters. Still, cost-related issues along with company’s limited international presence and domestic contraction raise concerns. A slowdown in company’s 2017 unit growth plan given the choppy sales environment could further weigh on sales. Estimates too have been going down ahead of its third quarter earnings release.”

Other research analysts also recently issued research reports about the stock. Stifel Nicolaus began coverage on shares of Red Robin Gourmet Burgers in a report on Monday, October 2nd. They issued a hold rating and a $62.00 target price for the company. BidaskClub downgraded shares of Red Robin Gourmet Burgers from a sell rating to a strong sell rating in a report on Monday, July 31st. BTIG Research reaffirmed a buy rating and issued a $70.00 target price (up previously from $64.00) on shares of Red Robin Gourmet Burgers in a report on Tuesday, September 12th. Maxim Group reaffirmed a buy rating and issued a $75.00 target price (down previously from $80.00) on shares of Red Robin Gourmet Burgers in a report on Tuesday, August 1st. Finally, Canaccord Genuity reaffirmed a buy rating and issued a $80.00 target price on shares of Red Robin Gourmet Burgers in a report on Sunday, October 1st. One investment analyst has rated the stock with a sell rating, six have given a hold rating and six have given a buy rating to the stock. The stock has an average rating of Hold and an average price target of $71.73.

Shares of Red Robin Gourmet Burgers (NASDAQ:RRGB) traded down 0.77% during midday trading on Wednesday, hitting $64.05. The company had a trading volume of 277,245 shares. The stock has a 50 day moving average price of $61.88 and a 200 day moving average price of $62.22. Red Robin Gourmet Burgers has a 1-year low of $40.85 and a 1-year high of $74.11. The firm has a market capitalization of $827.97 million, a P/E ratio of 99.30 and a beta of 0.65.

Red Robin Gourmet Burgers (NASDAQ:RRGB) last issued its quarterly earnings data on Tuesday, August 8th. The restaurant operator reported $0.61 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $0.51 by $0.10. Red Robin Gourmet Burgers had a net margin of 0.64% and a return on equity of 8.00%. The firm had revenue of $315.80 million during the quarter, compared to the consensus estimate of $315.69 million. During the same quarter in the previous year, the firm posted $0.75 EPS. The company’s revenue for the quarter was up 3.4% compared to the same quarter last year. On average, equities analysts anticipate that Red Robin Gourmet Burgers will post $2.80 EPS for the current fiscal year.

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In related news, CFO Guy J. Constant purchased 2,500 shares of the firm’s stock in a transaction on Monday, August 14th. The shares were acquired at an average price of $58.88 per share, for a total transaction of $147,200.00. The purchase was disclosed in a legal filing with the SEC, which can be accessed through this link. 2.66% of the stock is owned by insiders.

A number of hedge funds have recently made changes to their positions in the business. USA Financial Portformulas Corp purchased a new stake in Red Robin Gourmet Burgers in the 2nd quarter worth $458,000. Phocas Financial Corp. lifted its stake in Red Robin Gourmet Burgers by 4.7% in the 2nd quarter. Phocas Financial Corp. now owns 94,829 shares of the restaurant operator’s stock worth $6,188,000 after purchasing an additional 4,233 shares in the last quarter. Dynamic Technology Lab Private Ltd purchased a new stake in Red Robin Gourmet Burgers in the 2nd quarter worth $565,000. WINTON GROUP Ltd lifted its stake in Red Robin Gourmet Burgers by 55.5% in the 2nd quarter. WINTON GROUP Ltd now owns 16,716 shares of the restaurant operator’s stock worth $1,091,000 after purchasing an additional 5,963 shares in the last quarter. Finally, Public Employees Retirement System of Ohio lifted its stake in Red Robin Gourmet Burgers by 6.4% in the 2nd quarter. Public Employees Retirement System of Ohio now owns 1,871 shares of the restaurant operator’s stock worth $122,000 after purchasing an additional 112 shares in the last quarter.

About Red Robin Gourmet Burgers

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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