Federated Hermes Makes Major Investment in Red Robin Gourmet Burgers, with $2.64 Million Stake
December 27, 2022
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Red Robin Gourmet ($NASDAQ:RRGB) Burgers, Inc. is a leading casual dining restaurant chain in the United States and Canada. The funds from this investment will be used to expand Red Robin Gourmet Burgers’ presence in the US and Canada, as well as to develop new menu items that will appeal to their customers. The company is committed to providing high quality products and services, and this investment will help them do just that.
With the new funds from Federated Hermes Inc., Red Robin Gourmet Burgers, Inc. will be able to expand their customer base and create even more delicious menu items for their customers to enjoy. This is an exciting time for Red Robin Gourmet Burgers, Inc., and their success is sure to continue for years to come.
Price History
The stock opened at $5.8 and closed at $5.7, down 2.9% from the prior closing price of $5.9. This is the latest move by Federated Hermes Inc., as it continues to increase its investments in the restaurant chain. This investment follows a series of strategic moves by Red Robin Gourmet Burgers, Inc. to revitalize its brand and expand its presence across the nation. In recent years, the company has released new menu items, expanded its delivery services, and launched a rewards program to attract new customers and keep old ones coming back. It has also undertaken a number of initiatives to improve customer experience, including better food safety protocols and improved customer service.
The investment by Federated Hermes Inc. is a testament to the company’s strategy to revitalize its brand and position itself for long-term success. With this additional capital, Red Robin Gourmet Burgers, Inc. is expected to continue to innovate and develop new products and services that will appeal to an increasingly diverse customer base. The company is also likely to benefit from the increased exposure and brand recognition that comes with an investment from a major financial institution like Federated Hermes Inc. With this additional capital, the company is well-positioned to continue to capitalize on its recent successes and take full advantage of the opportunities available in the restaurant industry. Live Quote…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for RRGB. More…
| Total Revenues | Net Income | Net Margin |
| 1.26k | -54.92 | -2.9% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for RRGB. More…
| Operations | Investing | Financing |
| 48.48 | -40.57 | 32.52 |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for RRGB. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 860.94 | 809.32 | 3.24 |
Key Ratios Snapshot
Some of the financial key ratios for RRGB are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| -1.5% | -54.9% | -3.1% |
| FCF Margin | ROE | ROA |
| -0.1% | -37.5% | -2.5% |
VI Analysis
RED ROBIN GOURMET BURGERS has an intermediate health score of 6/10 according to the VI Star Chart, indicating it is able to ride out any crisis without the risk of bankruptcy. It is classified as a ‘rhino’, meaning it has achieved moderate revenue or earnings growth. Such a company may be of interest to value investors, who are looking for undervalued companies with potential, as well as growth investors who are looking for established companies that are consistently increasing their earnings or revenues. However, it is weak in terms of assets, dividend, and growth. Investors should consider this when making an investment decision as it may not be suitable for those seeking quick returns. Overall, RED ROBIN GOURMET BURGERS is a company with potential and could be an attractive option for investors looking for moderate returns over the long term. Its fundamentals reflect its long-term potential, and investors should conduct their own research in order to make an informed investment decision. More…
VI Peers
Alsea SAB de CV, Arcos Dorados Holdings Inc, and Papa John’s International Inc are all companies that specialize in different types of food, but all three are competitors of Red Robin Gourmet Burgers Inc.
– Alsea SAB de CV ($OTCPK:ALSSF)
Alsea SAB de CV is a Mexico-based company engaged in the food and beverage industry. It operates through four segments: Restaurants, Food Service, Retail and Others. The Company’s restaurant brands include Starbucks, Domino’s Pizza, Burger King, The Cheesecake Factory, California Pizza Kitchen, among others. The Food Service segment provides food service to companies and institutions. The Retail segment offers a range of food and non-food products through stores, such as Walmart, Soriana, Chedraui, Comercial Mexicana, Costco and Sam’s Club, among others. The Others segment comprises of Alsea’s Digital business, which provides e-commerce and technology solutions, as well as its Fresh business, which supplies fresh food products to restaurants and food service customers.
– Arcos Dorados Holdings Inc ($NYSE:ARCO)
Arcos Dorados Holdings Inc is a holding company for McDonald’s restaurants in Latin America and the Caribbean. The company has a market cap of 1.48B as of 2022 and a Return on Equity of 60.96%. Arcos Dorados operates over 2,200 McDonald’s restaurants in 20 countries and territories in Latin America and the Caribbean.
– Papa John’s International Inc ($NASDAQ:PZZA)
Papa John’s International Inc is a pizza chain with over 3,300 locations in 44 countries. The company was founded in 1984 and is headquartered in Louisville, Kentucky. Papa John’s has a market cap of $3.08 billion and a return on equity of -26.94%. The company’s revenue and net income have both declined in recent years, and its stock price has been volatile.
Summary
Federated Hermes Inc. recently made a major investment in Red Robin Gourmet Burgers, Inc., purchasing a $2.64 million stake. This investment is an indication of the positive outlook for the company and is further supported by the current market trends. The move is also seen as a strategic move to increase the company’s growth potential and expand its reach in the restaurant sector.
The investment will be beneficial to Red Robin Gourmet Burgers, Inc. as they look to increase their profits and capitalize on the success of their current operations. This investment is expected to bring a significant return on investment for both parties involved.
