Josh Arnold
Long/short equity

Red Robin: Attractive Company At Too High A Price


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...

Join Seeking Alpha PRO to read this archived article and 11,574 other archived articles
IDEA GENERATORXExclusive access to 10 PRO ideas every day
INVESTING IDEAS LIBRARYXExclusive access to PRO library of more than 15,000 ideas
SECTOR EXPERT NETWORKXExclusive access to all sector experts for direct consultation
PERFORMANCE TRACKINGXTrack performance of all PRO stock ideas
PROFESSIONAL TOOLSXProfessional Idea Filters to zero-in based on industry, market cap and more
"In just the first month of using PRO, I used it to generate two ideas which were actionable for me. As a result of these two positions, I have earned more than 20 times the annual subscription costs for PRO."Michael Yagemann, Greenbridge Capital
"I am pleasantly surprised with the scope of small and mid-cap coverage PRO offers. You can't find that any where else."Patrick Rice, Mainstay Capital Management
You may cancel at any time for any reason, and receive a prompt refund for membership on months paid and not used (max. 6 months). Details