Red Robin Story

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RRGB -- USA Stock  

USD 13.46  0.54  4.18%

The next fiscal quarter end is expected on the 30th of September 2020. The stock is undergoing an active upward rally. As many baby boomers are still indifferent towards consumer cyclical space, it makes sense to break down Red Robin as a potential position. We will evaluate why we are still optimistic in anticipation of a recovery.
Published over three weeks ago
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Our current take on Red Robin (NASDAQ:RRGB) analyst consensus
The asset utilization indicator refers to the revenue earned for every dollar of assets a company currently reports. Red Robin has an asset utilization ratio of 126.19 percent. This suggests that the company is making $1.26 for each dollar of assets. An increasing asset utilization means that Red Robin Gourmet is more efficient with each dollar of assets it utilizes for everyday operations.
What is the right price you would pay to acquire a share of Red Robin? For most investors, it would be the price that gives them a wide margin of safety to have minimal downside risk. In other words, most investors are always looking for undervalued stocks. Even if the future performance is not entirely as expected, the loss of holding it is minimized, and the downside risk is negated. Please read more on our stock advisor page.

What is happening with Red Robin Gourmet this year

Annual and quarterly reports issued by Red Robin Gourmet are formal financial statements that are published yearly and quarterly and sent to Red Robin stockholders. The reports show and break down the current year's ongoing operations and discuss plans for the upcoming year. Annual reports have been a requirement from the Securities and Exchange Commission (SEC) for businesses owned by the public since 1934. Companies such as Red Robin often view their annual report as an effective marketing tool to disseminate their perspective on company future earnings or innovations. With this in mind, many companies devote large sums of money to making their reports attractive and informative. In such instances, the annual report becomes a forum through which a company can communicate to the general public any number of topics that may or may not be directly related to the actual data published in the reports.

How Red Robin utilizes its cash?

To perform a cash flow analysis of Red Robin, investors first need to understand how to read the cash flow statement. A cash flow statement shows the amount of cash Red Robin is receiving and how much cash it distributes out in a given period. The Red Robin cash flow statement breaks down these inflows and outflows into different buckets, including operating activities, investing activities, and financing activities. Red Robin Net Cash Flow from Operations is projected to increase significantly based on the last few years of reporting. The past year's Net Cash Flow from Operations was at 156.61 Million

Payment of 160 shares by Buchmeier Michael of Red Robin subject to Rule 16b-3

Legal trades by Red Robin insiders are very common, as founders, directors, or employees of any publicly traded firm often have stock or stock options. These trades are made public in the United States through the filing of Form 4 of the Securities and Exchange Commission. Below entry was recorded recently and is publicly available as an insider trade:
Red Robin insider trading alert for payment of common stock by Buchmeier Michael, Chief People Officer, on 8th of September 2020. This event was filed by Red Robin Gourmet Burgers with SEC on 2020-09-08. Statement of changes in beneficial ownership - SEC Form 4 [view details]   
Note, although insider trading is legal, in the United States, Canada, Australia, and Germany, for mandatory reporting purposes, corporate insiders are defined as a company's officers, directors, and any beneficial owners of more than 10% of a class of the company's equity securities.

A Deeper Perspective

Earning per share calculations of Red Robin is based on official Zacks consensus of 4 analysts regarding Red Robin's future annual earnings. Given the historical accuracy of 79.37%, the future earnings per share of the company is estimated to be -11.2775 with the lowest and highest values of -12.0 and -10.32, respectively. Please note that this consensus of annual earnings estimates for the firm is an estimate of EPS before non-recurring items and including employee stock options expenses.

Is Red Robin a risky opportunity?

Let's check the volatility. Red Robin is looking slightly risky at this time. Whether you invest your money or manage your clients' funds, remember that it is easy to forget that behind Red Robin (NASDAQ:RRGB) stock is an actual business venture. So, do not let stock picking become an abstract concept by ignoring the elementary risk calculations. taking in a share of a Red Robin stock makes you a part-owner of that company.

Red Robin Gourmet Current Consensus

Here is the current trade recommendation based on an ongoing consensus estimate among financial analysis covering Red Robin Gourmet. The Red Robin consensus assessment is calculated by taking the average estimates from all of the analysts covering Red Robin

Hold
4
Sell
1
Strong Buy00.0
Buy00.0
Hold480.0
Sell120.0
Strong Sell00.0

Red Robin implied volatility may change after the rise

Current Risk Adjusted Performance is up to -0.02. Price may slip again. Red Robin Gourmet is displaying above-average volatility over the selected time horizon. Investors should scrutinize Red Robin Gourmet independently to ensure intended market timing strategies are aligned with expectations about Red Robin volatility.

Our Conclusion on Red Robin

Whereas some other companies in the restaurants industry are either recovering or due for a correction, Red Robin may not be as strong as the others in terms of longer-term growth potentials. In closing, as of the 29th of August 2020, our analysis shows that Red Robin hyperactively responds to market trends. The company is fairly valued and projects close to average probability of distress for the next 2 years. Our primary 30 days recommendation on the company is Cautious Hold.

About Contributor

This story should be regarded as informational only and should not be considered a solicitation to sell or buy any financial products. Macroaxis does not express any opinion as to the present or future value of any investments referred to in this post. This post may not be reproduced without the consent of Macroaxis LLC. Macroaxis LLC and Achuva Shats do not own shares of Red Robin Gourmet. Please refer to our Terms of Use for any information regarding our disclosure principles.

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