Red Robin Gourmet Burgers (RRGB) PT Lowered to $75 at Stephens Following 1Q
Stephens lowered its price target on Red Robin Gourmet Burgers (NASDAQ: RRGB) to $75.00 (from $80.00) while maintaining a Overweight rating following the company's 1Q earnings report. RRGB missed 1Q expectations, with SSS declining -0.9% vs. consensus of +0.7%. Adjusted EPS of $0.69 was in-line with guidance and compared to the street's estimates of $0.76, primarily due to the soft top-line and higher selling expenses.
While Stephens is disappointed that RRGB hasn’t participated in the industry’s improvement YTD, analyst Will Slabaugh notes the Company maintained FY18's positive comp guide, and that the annualized labor savings from 1Q would easily put estimates ahead of guidance.