RRGB Misses Q4 Forecasts On Higher G&A Expenses
Analysts at KeyBanc Capital Markets maintain their "hold" rating on Red Robin Gourmet Burgers (NASDAQ: RRGB), while raising their estimates for the company.
According to KeyBanc Capital Markets, Red Robin Gourmet Burgers has reported its Q4 results short of the expectations due to higher than expected G&A expenses. “While we generally like the limited time offer (LTO) strategy, we remain concerned that the $5.99 price point could lead to continued margin degradation and could train consumers to expect the lower prices for RRGB products if not managed properly,” the analysts say.
“During the spring LTO, management plans to offer in-store bounceback "scratch-and-win" coupons to guests to incent post-promotion visits,” the analysts add. KeyBanc Capital Markets has raised its EPS estimate for 2010 from $1.22 to $1.25, to reflect slightly better traffic gains.
