Red Robin Gourmet Burgers (RRGB) Stock Price Target Reduced at Jefferies

NEW YORK (TheStreet) -- Before Wednesday's market open, Red Robin Gourmet Burgers (RRGB) - Get Report stock price target was cut to $72 from $80 at Jefferies, which maintained a "buy" rating on the fast-casual food chain.

Shares of Red Robin closed lower by 5.03% to $48.19 on heavy trading volume today, extending Tuesday's losses caused by weak 2016 first quarter revenue and same store sales.

Revenue of $402.1 million for the quarter missed estimates of $415.2 million. Comparable restaurant sales declined 2.6%, while analysts were estimating comparable sales to be flat. Sales were affected by a 4.1% drop in traffic.

"While some of this may be attributable to delayed marketing, a larger contributor to weak traffic trends is increased competition and discounting," Jefferies analysts said in a note released this morning.

Red Robin did report earnings of $1.27 per share that topped estimates of $1.11 per share, but analysts called the beat "low quality" because "sales deleveraging was offset by 4% commodity deflation, effective cost management and delayed marketing spend, which resulted in lower than expected SG&A costs."

By the end of the trading day, 1.35 million shares of Red Robin had exchanged hands, significantly higher than its average daily volume of 256,613 shares.

Separately, Red Robin Gourmet Burgers has a "buy" rating and a letter grade of B- at TheStreet Ratings because of the company's impressive record of earnings per share growth, compelling growth in net income, revenue growth, reasonable valuation levels and largely solid financial position with reasonable debt levels by most measures.

You can view the full analysis from the report here: RRGB

TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this article's author.