UPDATE: Wunderlich Securities Upgrades Red Robin Gourmet Burgers to Buy, Raises PT on Strong Performance Despite Consumer Headwinds

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In a report published Friday, Wunderlich Securities analyst Robert M. Derrington upgraded the rating on
Red Robin Gourmet BurgersRRGB
from Hold to Buy, and raised the price target from $70.00 to $90.00. In the report, Wunderlich Securities noted, “We are elevating our rating on Red Robin (RRGB) back to Buy from Hold given our confidence in management's plan despite risks of slowing industry sales and volatile commodity prices. We believe Red Robin's same store sales (SSS) and traffic trends have continued to outperform most industry peers and are well-positioned to sustain that trend through 2015. Supported by its affordable check average, expeditious service, and elevated service and product offerings, we believe RR's business model is poised for even better operating trends to come. As management begins to reap the 2013 investments in its brand in 2014 and 2015, we believe its operating trends are poised to further accelerate. Factoring a 25-30x P/E to our 2015 EPS, we have raised our PT to $90 from $70 and rate RRGB as Buy.” Red Robin Gourmet Burgers closed on Thursday at $76.18.
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Posted In: Analyst ColorUpgradesAnalyst RatingsRobert M. DerringtonWunderlich Securities
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