- Red Robin Gourmet has surged off of its March lows, up over 400% in less than 9 months.
- While the recent flood of vaccines news should help with improving capacity and demand at restaurants, earnings estimates continue to point to years of net losses per share ahead.
- Besides, Red Robin was already one of the weakest dine-in names from a growth standpoint ahead of COVID-19, explaining what looks to be a discounted valuation relative to peers.
- I continue to see Red Robin as an Avoid despite the recent vaccine news, and I would view any rallies above $23.00 as selling opportunities.
For further details see:
Red Robin: Priced For Near Perfection