Tigress Financial Upgrades Red Robin Gourmet Burgers

Tigress Financial Partners upgraded Red Robin Gourmet Burgers, Inc. RRGB from Underperform to Neutral.

Analyst Ivan Feinseth noted that “improvements in Business Performance Drivers are becoming increasingly sustainable as the company’s ongoing brand transformation and new premium menu choices are driving moderate comparable restaurant sales growth.”

“3Q14 comp sales were up 0.9 percent and sales for the last twelve months rose 8.85 percent to $1.11 billion. Economic Profit improved from ($5.3) million to $5.1 million over the last 12 months.” according to the analyst note.

Additionally, Feinseth noted that “positive macroeconomic developments from improving labor conditions and lower fuel prices will also be modest tailwinds for the company.”

Feinseth’s greatest concern was over traffic trends as “guest traffic was down (2.3 percent) in the most recent quarter, and our fear is that as competition heats up RRGB’s market share will be challenged and their guest traffic deteriorate further and their comp sales will turn negative.”

Red Robin Gourmet Burgers, Inc. recently traded at $80.12, up 0.58 percent.