Piper Jaffray Increases Estimates And Target On Red Robin

According to Piper Jaffray, Red Robin

delivered revenue and operating EPS of $286.8 million and $0.58, above the 1Q11 estimates. Piper Jaffray said that results were in part driven by relatively stronger-than-expected comps of +1.9% at company units and +2.5% at franchise units, respectively, and strong cost management on the restaurant-level lines. “Quarter-to-date we understand 2Q11 comps to be trending in the +0.5% range, inclusive of an unfavorable calendar shift from Easter of approximately (2.3%). Given the early successes of Project RED, we recognize our rating and estimates may prove overly cautious as management is given time to execute on cost savings and other tactical initiatives. That said, we reiterate our Underweight rating on RRGB shares and are increasing our price target to $28.” Red Robin closed yesterday at $28.52.