Short

16.7

Great company with outstanding customer service

One bite and you will know why

Upgraded by McAdams,Wright,Ragen from Hold to Buy

Upgraded by Morgan Keegan from Mkt Perform to Outperform

Upgraded by Matrix Research from Sell to Hold

Downgraded by Matrix Research from Hold to Sell

How can you not love this place, watch the growth in your area.

Red Robin Gourmet Burgers is a solid restaurant selling at a very cheap price. They have had some operational issues, but insiders bought at these levels back in November. Risk vs. Reward is very positive here. With most bad news in the stock already, this could be a 2 points down, 10 points up in the next 6 months.

From Barron's 7-2-07:

"In retailing, most people look at the demand side. I always focus on the supply side. Look at casual-dining restaurant companies like P.F. Chang [PFCB], Cheesecake Factory [CAKE], Red Robin Gourmet [RRGB], Buffalo Wild Wings [BWLD] and California Pizza Kitchen [CPKI]. They're growing 15% to 40% per year and generally have P/E multiples of 20 to 30. By my calculation, based on the rate they are opening restaurants, Americans are going to have to eat 28 meals a week out of the house by 2011 to justify these multiples. So unless Americans are going to get very fat or very rich or their houses are going to burn down, that's unlikely to happen."