Red Robin Gourmet Burgers
With every passing month, it seems as if a new burger chain has landed on the scene. Brands such as Five Guys, Snake Shack, Steak-n-Shake and Five Napkin Burger are spreading far beyond their original regions.
In that light, it's especially impressive that Red Robin Gourmet Burgers (RRGB) just posted a nearly 5% gain in same-store sales in the most recent quarter. The chain, which was launched more than 40 years ago, has more than 450 stores across the country and appears unaffected by rising competition.The better-than-expected sales results helped Red Robin top fourth-quarter profit estimates by 40%, and the company has now exceeded the consensus by an average of 55% over the last four quarters. Credit goes to new CEO Stephen Carley, who's plans for a turnaround are now taking root. He's already taken roughly $12 million out of the company's cost structure and has identified more gains to come. Carley is also tinkering with a new smaller-store format, known as Burger Works, which appears to be off to a solid start. Though shares have rebounded from their lows of last summer, they still appear quite reasonable at less than six times projected 2012 EBITDA, on an enterprise value basis. Management thinks that's too low a multiple: The board of directors has just authorized a fresh $50 million stock buyback. These three companies have a solid degree of operating momentum, as seen by estimate-topping results, and more gains may lie ahead.
Twitter and become a fan on Facebook.
Select the service that is right for you!COMPARE ALL SERVICES
Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.
- Real Money + Doug Kass Plus 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV