Todd Brooks, an analyst from Benchmark Co., maintained the Buy rating on Red Robin Gourmet. The associated price target remains the same with $12.00.
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Todd Brooks has given his Buy rating due to a combination of factors surrounding Red Robin Gourmet’s strategic initiatives and financial outlook. The company has introduced a new strategic plan called “First Choice,” under the leadership of CEO Dave Pace, which builds on the foundational improvements made by the previous “North Star” plan. This new plan aims to enhance culinary and hospitality standards while exploring new funding strategies, including refranchising, to support marketing and technology investments and address deferred capital expenditures.
Additionally, Red Robin has updated its guidance for the second quarter of 2025, indicating stronger profitability than initially expected. The company now projects an Adjusted EBITDA of at least $17.7 million, surpassing the previous guidance range of $13 million to $16 million. The “First Choice” plan is structured around five strategic pillars, including maintaining operational gains, driving customer traffic, optimizing financial resources, improving restaurant conditions, and fostering a collaborative culture. These initiatives, combined with the company’s improved financial projections, underpin Todd Brooks’s optimistic Buy rating.
Based on the recent corporate insider activity of 37 insiders, corporate insider sentiment is positive on the stock. This means that over the past quarter there has been an increase of insiders buying their shares of RRGB in relation to earlier this year.