RRGB - Red Robin: Margin Improvements Are Urgently Needed
2024-04-30 12:23:17 ET
Summary
- Red Robin has struggled with profitability as customers haven't been satisfied with the company's restaurants in recent years.
- The company has implemented the North Star Plan to improve operations, but the 2024 guidance doesn't yet show needed improvements.
- Red Robin's high debt makes near-term improvements critical.
- The current stock price seems to value a too-optimistic scenario as a baseline, making the risk-to-reward poor, in my opinion.
Founded in 1969, Red Robin Gourmet Burgers ( RRGB ) operates and franchises restaurants in North America, offering burgers, pizza, salads, and wings among other food and drink items. The majority of Red Robin's restaurants are company-owned....
Red Robin: Margin Improvements Are Urgently Needed