Red Robin Gourmet Burgers slips as brokerage downgrades on cost pressures

Red Robin Gourmet Burgers

18/04/2022 16:54

** Shares of casual dining restaurant chain  RRGB.O  down
~4% at $14.20 
    ** Brokerage Raymond James cuts rating on RRGB to "market
perform" from "outperform", citing reduced industry margin
visibility against an already pressured margin profile 
    ** Says co's improving sales is offset by
higher-than-expected G&A expenses as it exits the COVID-19
pandemic
    ** Believe steakhouses Bloomin' Brands  BLMN.O , Ruth's
Hospitality Group  RUTH.O  and Texas Roadhouse  TXRH.O  are in a
relatively favorable commodity position near-term given more
favorable prices in recent months - brokerage 
    ** RRGB is rated "buy" on average among four brokerages on
Refinitiv, with a median PT of $28 
    ** With session's losses, stock is down ~14% YTD 

 (Reporting by Deborah Sophia in Bengaluru)
 ((DeborahMary.Sophia@thomsonreuters.com;))