Red Robin Gourmet Burgers
Altman Z-Score, Current: 2.54
Altman Z-Score, 2009: 2.37
Red Robin Gourmet Burgers (RRGB) also ranked in the grey area with a Z-Score of 2.54, an improvement from 2009 when its score came in at 2.37.Last month Red Robin posted weaker-than-expected quarterly profits and reduced its outlook, sending investors scrambling. Comps fell 1.2% in Red Robin's fiscal-second quarter on a 2.1% drop in average guest check, partially offset by a 0.9% uptick in guest counts. In line with the restaurant chain's improving Z-Score, its quarterly comps figure was a marked improvement from year-earlier declines of 11.5%. U.S.-based comps fell 2% in the recent quarter while stores in Canada grew comps by 0.8%. Weak results were attributed to soft sales at Red Robin's California and Arizona locations where 25% of the company's restaurants are located. Those two states have been consistently plagued by higher-than-average unemployment rates. The Colorado-based company expects comps to be positive 0.5% for the current fiscal year, and plans to step up its national ad campaign and open 15 new restaurants. A new CEO, Stephen Carley, a former chief executive of El Pollo Loco, will take the reigns beginning Sept. 15, replacing Dennis Mullen.
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