Restaurant chain Red Robin Gourmet Burgers (NASDAQ:RRGB) has lost its sizzle. At least, it has, according to Jefferies Financial Group, who recently revised the stock down. The market isn’t taking the news well, as Red Robin is trading significantly down going into Wednesday afternoon trading.
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Jefferies not only reduced the rating on Red Robin but also the price target. Analyst Andy Barish lowered the stock from Buy to Hold. Further, Barish lowered the company’s price target to $7.50 per share. The move follows Red Robin’s recent announcement of earnings results, where it detailed a loss of $1.03 in earnings per share. That was based on revenue of $286.88 million.
Red Robin faces a series of major changes going into 2023. Its COO Michael Buchmeier—a 25-year veteran of Red Robin—is leaving the company effective January 31. There is, as of yet, no available reason for the departure, based on SEC filings. The Red Robin Royalty program will also take a retooling starting with the New Year. Specifically, the free burger available as a birthday reward will also require an additional purchase of at least $4.99 to get.
Though this may seem like a lot of mostly bad news, insiders aren’t concerned at all. Currently, insider perception around Red Robin is very positive, with insiders purchasing $488,800 worth of shares in the last three months.
