Visit https://www.overlookedalpha.com for more<br /><br />Red Robin Gourmet Burgers (RRGB) has been one of the worst performing restaurant stocks in recent years, but shares have rallied 53% in nine trading sessions as investors bet on a turnaround.<br /><br />Right now, the company has a market cap around 127 million dollars. With 50 million of cash and 189 million in debt, the enterprise value is around 268 million. <br /><br />Unlike burger chains Five Guys or Shake Shack, Red Robin also serves beer and liquor, and provides traditional table service.<br /><br />For a while, Red Robin was an excellent business. The company went public in 2002 and grew for roughly 15 years. <br /><br />But the business started to decline in 2015, and it’s never recovered. <br /><br />Since 2015 same-restaurant sales appear to be roughly flat. Adjusted EBITDA peaked at $148 million. Right now, Red Robin is guiding for 53 to 58 million for full year 2022.<br /><br />So it’s little surprise that Red Robin stock is down 91% from its all-time high.<br /><br />And yet there is some logic to the recent rally.<br /><br />These are personal opinions not financial advice and we have no position in Red Robin stock. For more detailed analysis visit our website overlookedalpha.com
