Develops and operates full-service casual-dining restaurants. Franchises Red Robin restaurants to independent operators. Now — the numbers.
That much dependence is a risk in itself: if this one line weakens, the whole company feels it directly.
The company closed last year at a loss: costs ran above sales. The picture changes only if spending is reined in.
Before the clock runs out, either sales must climb sharply or new money must come in. This is the most critical line in the whole picture.
This company is not turning a profit, so the market is pricing its sales instead: 0.1× for every dollar of annual revenue.
Against companies in its own sector, it looks cheaper than 21% of them.
Analysts' average target sits 6% above today's price.
We compared this company with its own sector across five subjects.
A score of 50 means class average.
Clearly below the class average.
Clearly below the class average.
Clearly below the class average.
There is growth, but not at top-of-the-class tempo.
The stock has been running stronger than the market lately.
Financial Strength: The cash-and-debt balance is thin; the buffer for hard times is slim.
Valuation: The stock trades at a price that looks expensive next to its earnings; that can cap future returns.
An investor who bought at the very peak is down 69% today. The business is the same; what changed most is the price — and the expectations — the market pins on it.
Our checks did not surface a specific strength to highlight here.
A loss of $23.3M against $1.2B in annual sales. And on top of that, sales fell from the year before.
This stock swings about 2.4 times as much as the market average. Big rallies — and big drops — can both happen fast.
At the current pace of spending, the cash lasts less than a year. After that, the company needs to find new money.
On our five-subject report card, RRGB sits behind the class. A low grade doesn’t mean “doomed” — it means “big claim, small proof.”
The takeaway: RRGB’s sales are going backwards, and it closed last year at a loss. The road back runs through both.
The total grade weighs these five subjects against the sector — it isn’t a simple average of the five.