These days, good news about the casual dining industry is tough to find. Even former highfliers like Panera Bread
So it's not surprising that a decent quarter from Red Robin Gourmet Burgers
While total sales grew 23%, excluding last year's extra week, and comps were up 2.7%, the increase was all in the average check size. Customer traffic still fell 1.5% for the quarter.
Early last year, the company began a national TV advertising campaign, which initially stemmed the tide of declining traffic. But fourth-quarter traffic seems to indicate that the effort has fizzled out, even though management praised the ads for driving a sharp increase in awareness, and gushed over the awards its quirky commercials have received.
The CAPS community is wary of the company, awarding it only two stars out of a possible five. I take to heart the comments on Red Robin being a bit pricey. While a gourmet burger should command a premium price, $8.79 in Dallas for a bacon cheeseburger is a lot more than $7.29 at Chili's, owned by Brinker
The stock price doesn't look like much of a bargain, either, trading at 20 times trailing-12-month earnings. When investors can snap up Ruby Tuesday
For related Foolishness:
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Fool contributor Timothy M. Otte surveys the retail scene from Dallas. He welcomes comments on his articles, but doesn't own shares of any of the companies mentioned in this article. The Fool's disclosure policy, sadly, does not come with a side of seasoned fries.
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