Wunderlich Securities Reiterates Buy Rating on Red Robin Gourmet Burgers Following Strong Q213 Operating Results

In a report published Friday, Wunderlich Securities analyst Robert M. Derrington reiterated a Buy rating and $70.00 price target on Red Robin Gourmet Burgers RRGB.

In the report, Wunderlich Securities noted, “We reiterate our Buy rating on Red Robin (RRGB) following the company's considerably better-than-expected Q213 operating results. On the back of management's ongoing strategic efforts to elevate the consumer experience of its popular Red Robin brand, same store sales (SSS) again dramatically exceeded those of its peers, increasing 4.3% and contributing to 48% Q213 EPS growth to $0.77 vs. our $0.69, Street $0.66. Also, despite the risk of slowing industry sales and volatile commodity prices, we believe RRGB's business model, which includes both offensive and defensive characteristics, has the company well-positioned for even stronger operating trends to come. Factoring a 20-22x P/E to our revised higher 2015 EPS ($3.30 from $3.20), we project a 12-18 month price target of $70.”

Red Robin Gourmet Burgers closed on Thursday at $61.47.