Wunderlich Securities Sees Strong Q3 EPS For Red Robin Gourmet Burgers

In a report published Wednesday, Wunderlich Securities analyst Robert M. Derrington reiterated a Buy rating and $76.00 price target on Red Robin Gourmet Burgers, Inc. (NASDAQ: RRGB).

In the report, Wunderlich Securities noted, “Red Robin just reported adjusted Q3 EPS of $0.50 beating our/Street $0.34 estimates and compared to $0.32 last year, a 56.3% growth y-o-y. The results were aided by lower than expected SG&A, and D&A, in-line Restaurant profit, lower tax rate and share count. Additionally, management provided an update to its 2014 including SSS approaching 3.0% from "low single-digits", 19 new company units from 20, and 3 Burger Works from 4-5. Factoring only a 7.4x EV/EBITDA multiple to our unrevised 2015 projections compared to peers who trade at >9-10x supports our unrevised price target of $76. We reiterate our Buy rating.”

Red Robin Gourmet Burgers closed on Tuesday at $63.42.