Is Red Robin Stock a Good Investment?
Red Robin Investment Advice | RRGB |
- Examine Red Robin's financial health by looking at its balance sheet, income statement, and cash flow statement. Analyze key financial ratios, such as Price-to-Earnings (P/E), Price-to-Sales (P/S), and Price-to-Book (P/B), to determine whether the stock is fairly valued or over/undervalued.
- Research Red Robin's leadership team and their track record. Good management can help Red Robin navigate difficult times and make strategic decisions that benefit shareholders and increases its net worth.
- Consider the overall health of the Hotels, Restaurants & Leisure space and any emerging trends that could impact Red Robin's business and its evolving consumer preferences.
- Compare Red Robin's performance and market position to its competitors. Analyze how Red Robin is positioned in terms of product offerings, innovation, and market share.
- Check if Red Robin pays a dividend and its dividend yield and payout ratio.
- Review what financial analysts are saying about Red Robin's stock and their price targets. However, remember that analysts' opinions can vary, and their predictions may not always be accurate.
It's important to note that investing in Red Robin Gourmet stock, carries risks, and you should carefully consider your investment goals and risk tolerance before making any investment decisions. Also, remember that it's important for investors to have a long-term perspective and a well-diversified portfolio to manage the impact of stock market volatility on their investments. Below is a detailed guide on how to decide if Red Robin Gourmet is a good investment.
Sell | Buy |
Hold
Market Performance | OK | Details | |
Volatility | Slightly risky | Details | |
Hype Condition | Over hyped | Details | |
Current Valuation | Undervalued | Details | |
Odds Of Distress | Below Average | Details | |
Economic Sensitivity | Follows the market closely | Details | |
Investor Sentiment | Interested | Details | |
Analyst Consensus | Strong Buy | Details | |
Financial Strenth (F Score) | Healthy | Details | |
Financial Leverage | Not Rated | Details | |
Reporting Quality (M-Score) | Unlikely Manipulator | Details |
Examine Red Robin Stock
Researching Red Robin's stock involves analyzing various aspects of the company and its industry to make an informed investment decision. The key areas to focus on are fundamentals, business model and competitive advantage. It is also important to analyze trends in revenue, net income, and cash flow, as well as key financial ratios, such as price-to-earnings (P/E), price-to-sales (P/S), and debt-to-equity (D/E). About 16.0% of the company outstanding shares are owned by corporate insiders. The company has Price/Earnings To Growth (PEG) ratio of 2.41. Red Robin Gourmet recorded a loss per share of 3.29. The entity had not issued any dividends in recent years.
To determine if Red Robin is a good investment, evaluating the company's potential for future growth is also very important. This may include expanding into new markets, launching new products or services, or improving operational efficiency. Companies with strong growth prospects can be more attractive investments. This aspect of the research should be conducted in the context of the overall market and industry in which the company operates and should include an analysis of growth potential, competitive landscape, and any regulatory or economic factors that could impact the business. Some of the essential points regarding Red Robin's research are outlined below:
| Red Robin Gourmet had very high historical volatility over the last 90 days | |
| Red Robin Gourmet currently holds 618.54 M in liabilities. Red Robin Gourmet has a current ratio of 0.53, indicating that it has a negative working capital and may not be able to pay financial obligations when due. Note, when we think about Red Robin's use of debt, we should always consider it together with its cash and equity. | |
| The entity reported the previous year's revenue of 1.3 B. Net Loss for the year was (21.23 M) with profit before overhead, payroll, taxes, and interest of 195.97 M. | |
| Red Robin Gourmet currently holds about 50.34 M in cash with (1.16 M) of positive cash flow from operations. This results in cash-per-share (CPS) ratio of 3.17. | |
| Roughly 65.0% of the company shares are owned by institutional investors | |
| Latest headline from seekingalpha.com: Red Robin Gourmet Burgers files for secondary offering of common stock |
Red Robin uses earnings reports to provide investors with an update of all three financial statements, including the income statement, the balance sheet, and the cash flow statement. Therefore, it is also crucial when considering investing in Red Robin Gourmet. Every quarterly earnings report provides investors with an overview of sales, expenses, and net income for the most recent period. It also may provide a comparison to Red Robin's previous reporting period. The quarterly earnings reports are usually disseminated to the public via Form 10-Q, which is a legal document filed with the Securities and Exchange Commission every quarter.
| 27th of February 2024 Upcoming Quarterly Report | View | |
| 22nd of May 2024 Next Financial Report | View | |
| 31st of December 2023 Next Fiscal Quarter End | View | |
| 27th of February 2024 Next Fiscal Year End | View | |
| 30th of September 2023 Last Quarter Report | View | |
| 31st of December 2022 Last Financial Announcement | View |
Earnings surprises can significantly impact Red Robin's stock price both in the short term and over time. Negative earnings surprises usually result in a price decline. However, it has been seen that positive earnings surprises lead to an immediate rise in a stock's price and a gradual increase over time. This is why we often hear news about some companies beating earning projections. Financial analysts spend a large amount of time predicting earnings per share (EPS) along with other important future indicators. Many analysts use forecasting models, management guidance, and additional fundamental information to derive an EPS estimate. Below are the table of largest EPS Surprises Red Robin's investors have experienced.
| Reported | Fiscal Date | Estimated EPS | Reported EPS | Surprise | |||
|---|---|---|---|---|---|---|---|
2013-11-05 | 2013-09-30 | 0.29 | 0.32 | 0.03 | 10 | ||
2006-02-16 | 2005-12-31 | 0.3 | 0.33 | 0.03 | 10 | ||
2003-02-27 | 2002-12-31 | 0.21 | 0.24 | 0.03 | 14 | ||
2009-08-13 | 2009-06-30 | 0.37 | 0.41 | 0.04 | 10 | ||
2006-08-10 | 2006-06-30 | 0.39 | 0.43 | 0.04 | 10 | ||
2004-05-21 | 2004-03-31 | 0.28 | 0.32 | 0.04 | 14 | ||
2003-08-14 | 2003-06-30 | 0.22 | 0.26 | 0.04 | 18 | ||
2002-11-06 | 2002-09-30 | 0.18 | 0.22 | 0.04 | 22 |
Red Robin Target Price Consensus
Red target price is determined by taking all analyst projections and averaging them out. There is no one specific way to measure analysts' performance other than comparing it to past results via a very sophisticated attribution analysis. Red Robin's target price projections below should be used in combination with other traditional price prediction techniques such as stock price forecasting, investor sentiment analysis, technical analysis, earnings estimate, and various momentum models.
| 5 | Strong Buy |
Most Red analysts issue ratings four times a year, at intervals of three months. Ratings are usually accompanied by a target price to help potential investors understand Red stock's fair price compared to its market value. Analysts arrive at stock ratings after researching the public financial statements of Red Robin Gourmet, talking to its executives and customers, or listening to those companies' conference calls.
Macroaxis Advice Exposure ValuationRed Robin Target Price Projection
Red Robin's current and average target prices are 5.91 and 8.75, respectively. The current price of Red Robin is the price at which Red Robin Gourmet is currently trading. On the other hand, Red Robin's target price is what analysts think the stock is worth or could sell for in the future. The more significant the discrepancy between the two prices, the more it stimulates investors to act.Target Price
Analyst Consensus On Red Robin Target Price
Red Robin Analyst Ratings
Red Robin's analyst stock recommendations are determined by taking an average estimate of all analysts we track and classifying them as Strong Buy, Buy, Hold, Strong Sell, or Sell. Ratings generally communicate what analysts sense about Red Robin stock, and they use a lot of effort and time to analyze it and arrive at a rating. That suggests that analyst recommendations are the outcome of an objective and thorough examination of Red Robin's financials, market performance, and future outlook by experienced professionals. Red Robin's historical ratings below, therefore, can serve as a valuable tool for investors.Know Red Robin's Top Institutional Investors
Have you ever been surprised when a price of an equity instrument such as Red Robin is soaring high without any particular reason? This is usually happening because many institutional investors are aggressively trading Red Robin Gourmet backward and forwards among themselves. Red Robin's institutional investor refers to the entity that pools money to purchase Red Robin's securities or originate loans. Institutional investors include commercial and private banks, credit unions, insurance companies, pension funds, hedge funds, endowments, and mutual funds. Operating companies that invest excess capital in these types of assets may also be included in the term and may influence corporate governance by exercising voting rights in their investments.
| Shares | D. E. Shaw & Co Lp | 2024-09-30 | 185.6 K | Western Wealth Management, Llc | 2024-09-30 | 161.5 K | Pdt Partners, Llc | 2024-09-30 | 151.4 K | Susquehanna International Group, Llp | 2024-09-30 | 140.3 K | Goldman Sachs Group Inc | 2024-09-30 | 135.4 K | Bleakley Financial Group Llc | 2024-09-30 | 121.7 K | Millennium Management Llc | 2024-09-30 | 104.6 K | Amvescap Plc. | 2024-09-30 | 99.3 K | Dimensional Fund Advisors, Inc. | 2024-09-30 | 96.1 K | Pacific Ridge Capital Partners, Llc | 2024-09-30 | 984.1 K | Vanguard Group Inc | 2024-09-30 | 759.7 K |
Red Robin's market capitalization trends
The company currently falls under 'Small-Cap' category with a current market capitalization of 102.7 M.Market Cap |
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Red Robin's profitablity analysis
| Last Reported | Projected for Next Year | ||
| Return On Tangible Assets | (0.03) | (0.03) | |
| Return On Capital Employed | 0.01 | 0.01 | |
| Return On Assets | (0.03) | (0.03) | |
| Return On Equity | 1.19 | 1.25 |
Determining Red Robin's profitability involves analyzing its financial statements and using various financial metrics to determine if Red Robin is a good buy. For example, gross profit margin measures Red Robin's profitability after accounting for the cost of goods sold, while net profit margin measures profitability after accounting for all expenses. Other important metrics include return on assets, return on equity, and free cash flow. By reviewing multiple sources and metrics, you can gain a complete picture of Red Robin's profitability and make more informed investment decisions.
Please note, the presentation of Red Robin's financial position, as portrayed in its financial statements, is often influenced by management's estimates, judgments, and sometimes even manipulations. In the best case, Red Robin's management is honest, while the outside auditors are strict and uncompromising. Please utilize our Beneish M Score to check the likelihood of Red Robin's management manipulating its earnings.
Evaluate Red Robin's management efficiency
Red Robin Gourmet has return on total asset (ROA) of (0.0217) % which means that it has lost $0.0217 on every $100 spent on assets. This is way below average. Similarly, it shows a return on stockholder's equity (ROE) of (2.3831) %, meaning that it created substantial loss on money invested by shareholders. Red Robin's management efficiency ratios could be used to measure how well Red Robin manages its routine affairs as well as how well it operates its assets and liabilities. The current year's Return On Equity is expected to grow to 1.25, whereas Return On Tangible Assets are projected to grow to (0.03). At present, Red Robin's Intangible Assets are projected to decrease significantly based on the last few years of reporting. The current year's Debt To Assets is expected to grow to 0.28, whereas Total Assets are forecasted to decline to about 633.8 M.| Last Reported | Projected for Next Year | ||
| Book Value Per Share | (1.16) | (1.10) | |
| Tangible Book Value Per Share | (2.04) | (1.94) | |
| Enterprise Value Over EBITDA | 9.93 | 6.77 | |
| Price Book Value Ratio | (8.69) | (8.26) | |
| Enterprise Value Multiple | 9.93 | 6.77 | |
| Price Fair Value | (8.69) | (8.26) |
At Red Robin Gourmet, effective management practices are pivotal to sustaining long-term profitability. We delve into financial metrics and market conditions to provide a comprehensive analysis of the stock's prospects.
Beta 2.718 |
Basic technical analysis of Red Stock
As of the 6th of January, Red Robin holds the Risk Adjusted Performance of 0.1116, semi deviation of 4.04, and Coefficient Of Variation of 784.06. Compared to fundamental indicators, the technical analysis model allows you to check existing technical drivers of Red Robin, as well as the relationship between them.Red Robin's insider trading activities
Some recent studies suggest that insider trading raises the cost of capital for securities issuers and decreases overall economic growth. Trading by specific Red Robin insiders, such as employees or executives, is commonly permitted as long as it does not rely on Red Robin's material information that is not in the public domain. Local jurisdictions usually require such trading to be reported in order to monitor insider transactions. In many U.S. states, trading conducted by corporate officers, key employees, directors, or significant shareholders must be reported to the regulator or publicly disclosed, usually within a few business days of the trade. In these cases Red Robin insiders are required to file a Form 4 with the U.S. Securities and Exchange Commission (SEC) when buying or selling shares of their own companies.
Red Robin's Outstanding Corporate Bonds
Red Robin issues bonds to finance its operations. Corporate bonds make up one of the largest components of the U.S. bond market, which is considered the world's largest securities market. Red Robin Gourmet uses the proceeds from bond sales for a wide variety of purposes, including financing ongoing mergers and acquisitions, buying new equipment, investing in research and development, buying back their own stock, paying dividends to shareholders, and even refinancing existing debt. Most Red bonds can be classified according to their maturity, which is the date when Red Robin Gourmet has to pay back the principal to investors. Maturities can be short-term, medium-term, or long-term (more than ten years). Longer-term bonds usually offer higher interest rates but may entail additional risks.
Understand Red Robin's technical and predictive indicators
Using predictive indicators to make investment decisions involves analyzing Red Robin's various financial and market-based factors to help forecast future trends and identify investment opportunities. Select the indicators that are most relevant to your investment strategy. Each indicator has its own strengths and weaknesses, so it's essential to combine multiple indicators to get a more comprehensive view of the market and reduce the risk of making poor decisions based on limited data.
| Risk Adjusted Performance | 0.1116 | |||
| Market Risk Adjusted Performance | 0.8224 | |||
| Mean Deviation | 3.13 | |||
| Semi Deviation | 4.04 | |||
| Downside Deviation | 4.65 | |||
| Coefficient Of Variation | 784.06 | |||
| Standard Deviation | 4.32 | |||
| Variance | 18.66 | |||
| Information Ratio | 0.1224 | |||
| Jensen Alpha | 0.5327 | |||
| Total Risk Alpha | 0.4752 | |||
| Sortino Ratio | 0.1136 | |||
| Treynor Ratio | 0.8124 | |||
| Maximum Drawdown | 30.34 | |||
| Value At Risk | (5.47) | |||
| Potential Upside | 5.99 | |||
| Downside Variance | 21.64 | |||
| Semi Variance | 16.34 | |||
| Expected Short fall | (3.59) | |||
| Skewness | (0.25) | |||
| Kurtosis | 3.08 |
| Risk Adjusted Performance | 0.1116 | |||
| Market Risk Adjusted Performance | 0.8224 | |||
| Mean Deviation | 3.13 | |||
| Semi Deviation | 4.04 | |||
| Downside Deviation | 4.65 | |||
| Coefficient Of Variation | 784.06 | |||
| Standard Deviation | 4.32 | |||
| Variance | 18.66 | |||
| Information Ratio | 0.1224 | |||
| Jensen Alpha | 0.5327 | |||
| Total Risk Alpha | 0.4752 | |||
| Sortino Ratio | 0.1136 | |||
| Treynor Ratio | 0.8124 | |||
| Maximum Drawdown | 30.34 | |||
| Value At Risk | (5.47) | |||
| Potential Upside | 5.99 | |||
| Downside Variance | 21.64 | |||
| Semi Variance | 16.34 | |||
| Expected Short fall | (3.59) | |||
| Skewness | (0.25) | |||
| Kurtosis | 3.08 |
Consider Red Robin's intraday indicators
Red Robin intraday indicators are useful technical analysis tools used by many experienced traders. Just like the conventional technical analysis, daily indicators help intraday investors to analyze the price movement with the timing of Red Robin stock daily movement. By combining multiple daily indicators into a single trading strategy, you can limit your risk while still earning strong returns on your managed positions.
Red Robin Corporate Filings
| 23rd of December 2024 Other Reports | ViewVerify | |
F4 | 20th of December 2024 The report filed by a party regarding the acquisition or disposition of a company's common stock, as well as derivative securities such as options, warrants, and convertible securities | ViewVerify |
F3 | 4th of December 2024 An amendment to the original Schedule 13D filing | ViewVerify |
8K | 3rd of December 2024 Report filed with the SEC to announce major events that shareholders should know about | ViewVerify |
Red Stock media impact
Far too much social signal, news, headlines, and media speculation about Red Robin that are available to investors today. That information is available publicly through Red media outlets and privately through word of mouth or via Red internal channels. However, regardless of the origin, that massive amount of Red data is challenging to quantify into actionable patterns, especially for investors that are not very sophisticated with ever-evolving tools and techniques used in the investment management field.
A primary focus of Red Robin news analysis is to determine if its current price reflects all relevant headlines and social signals impacting the current market conditions. A news analyst typically looks at the history of Red Robin relative headlines and hype rather than examining external drivers such as technical or fundamental data. It is believed that price action tends to repeat itself due to investors' collective, patterned thinking related to Red Robin's headlines and news coverage data. This data is often completely overlooked or insufficiently analyzed for actionable insights to drive Red Robin alpha.
Red Robin Sentiment by Major News Outlets
Investor sentiment, mood or attitude towards Red Robin can have a significant impact on its stock price or the market as a whole. This sentiment can be positive or negative, and various factors, such as economic indicators, news events, or market trends, can influence it. When investor sentiment is positive, investors are more likely to buy stocks, increasing demand and increasing the stock price. Positive investor sentiment can be driven by good news about the company or the broader market, such as solid earnings reports or positive economic data.
Note that negative investor sentiment can cause investors to sell stocks, leading to a decrease in demand and a drop in the stock price. Negative sentiment can be driven by factors such as poor earnings reports, negative news about the company or industry, or broader economic concerns. It's important to note that investor sentiment is just one of many factors that can affect stock prices. Other factors, such as company performance, industry trends, and global economic conditions, can also play a significant role in determining the value of a stock.
Red Robin Corporate Management
| Jason Rusk | Chief Officer | Profile | |
| Kevin Mayer | Executive Officer | Profile | |
| Jesse Griffith | Senior Operations | Profile | |
| Meghan Spuler | Chief Officer | Profile | |
| Wayne Davis | VP Officer | Profile | |
| Jyoti Lynch | Chief Officer | Profile |
Check out Your Equity Center to better understand how to build diversified portfolios, which includes a position in Red Robin Gourmet. Also, note that the market value of any company could be closely tied with the direction of predictive economic indicators such as signals in price. You can also try the Portfolio Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.
Is Hotels, Restaurants & Leisure space expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Red Robin. If investors know Red will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Red Robin listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Earnings Share (3.29) | Revenue Per Share | Quarterly Revenue Growth (0.01) | Return On Assets | Return On Equity |
The market value of Red Robin Gourmet is measured differently than its book value, which is the value of Red that is recorded on the company's balance sheet. Investors also form their own opinion of Red Robin's value that differs from its market value or its book value, called intrinsic value, which is Red Robin's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Red Robin's market value can be influenced by many factors that don't directly affect Red Robin's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
In summary, please note that there is a difference between Red Robin's value and its price, as these two are different measures arrived at by various means. Investors typically determine if Red Robin is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Red Robin's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.