Josh Arnold
Long/short equity

Red Robin: Attractive Company At Too High A Price

Overview

Red Robin Gourmet Burgers, Inc. (NASDAQ:RRGB) was founded in Colorado in 1969. Since then, the family-friendly chain has grown to 473 restaurants, 133 of which are franchises. The company specializes in gourmet burgers and salads in addition to its "Mad Mixology" alcoholic and non-alcoholic mixed drinks. The company prides itself on being a destination for families and women with children, in particular. In keeping with this theme, prices are very reasonable, with average checks per guest coming in at about $10.50 in recent quarters. RRGB also has kids' play areas in the front section of all of its restaurants to entice families to bring their little ones for a meal in a relaxed, fun environment. This model...

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