DA Davidson Starts Red Robin Gourmet Burgers (RRGB) at Buy; Strong Management Team Made Quick Turnaround

DA Davidson initiates coverage on Red Robin Gourmet Burgers (NASDAQ: RRGB) with a Buy. PT $46.00.

Analyst, Bart Glenn, said, "We attribute much of Red Robin’s turn in business to three key executives hired over the last year and a half. CEO Steve Carley arrived in August 2010 and quickly produced Project RED, the company’s blueprint for a turnaround...Value is improving as management plans to hold off on raising prices in 2012....Our thesis is based on achieving 3.5% same store sales, which is modestly ahead of consensus. Given the significant operating leverage, our 2013 EPS estimate of $2.50 is 16% ahead of the Street’s $2.15. Each incremental point of comp store sales equates to $0.25 of earnings."

For an analyst ratings summary and ratings history on Red Robin Gourmet Burgers click here. For more ratings news on Red Robin Gourmet Burgers click here.

Shares of Red Robin Gourmet Burgers closed at $37.11 yesterday.

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