Red Robin shares jump following analyst upgrade
Red Robin Gourmet Burgers Inc. shares jumped Monday after two Raymond James analysts upgraded their rating on the restaurant chain.
Analysts Bryan Elliott and Brian Vaccaro said in a research note that they expect the company will do better than its competitors in the near future.
Red Robin has recently cut costs and management is rolling out new efforts to improve sales, which the analysts think should lead to significant gains over the next few years. These efforts include new products and advertising as well as remodeling restaurants.
The analysts raised their rating on the stock to "Outperform" to "Strong Buy" and set an $80 price target.
The Greenwood Village, Colo.-based company is scheduled to report its quarterly financial results on Friday.
Shares of Red Robin rose $7.49, or 11 percent, to $74.08 in late afternoon trading. Its stock price had gained 82 percent in the past 12 months but has been sliding since early November.