Red Robin Shares Popped Temporarily: What You Need to Know
Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.
What: What an open for shares of Red Robin Gourmet Burgers (NAS: RRGB) ! Shares spiked 10% at the open, only to fall into negative territory and finally recover some gains.
So what: Of note today is the company's solid earnings beat, which was announced last night after the market closed. Revenue reached $215.8 million as restaurant sales increased 3.1%, and earnings per share of $0.48 crushed analyst's estimates of $0.36.
Now what: The bottom line is that consumers are spending more per visit, and that's great for Red Robin. I'm still not seeing a lot of value in shares after today's jump, with a forward P/E ratio of 19.3 and revenue growth of only 7%. Despite the good quarter, Red Robin is just too expensive for this Fool to jump in.
Interested in more info on Red Robin? Add it to your watchlist.
At the time this article was published Fool contributor Travis Hoium does not have a position in any company mentioned. You can follow Travis on Twitter at @FlushDrawFool, check out his personal stock holdings or follow his CAPS picks at TMFFlushDraw.The Motley Fool owns shares of Red Robin Gourmet Burgers. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.
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