Red Robin Gourmet Burgers Inc. (RRGB, Financial) filed Annual Report for the period ended 2010-12-26.
Red Robin Gourmet Burgers Inc. has a market cap of $356.1 million; its shares were traded at around $22.83 with a P/E ratio of 27.5 and P/S ratio of 0.4. Red Robin Gourmet Burgers Inc. had an annual average earning growth of 14.2% over the past 10 years.Hedge Fund Gurus that owns RRGB: Bruce Kovner of Caxton Associates, Steven Cohen of SAC Capital Advisors, Jim Simons of Renaissance Technologies LLC. Mutual Fund and Other Gurus that owns RRGB: Chuck Royce of Royce& Associates.
Under our current form of area development agreement, a franchisee must pay us a $10,000 area development fee at the time we execute the agreement for each restaurant the franchisee agrees to develop. When a franchisee opens a new restaurant, pursuant to the development agreement we collect an additional franchise fee of $25,000. Under area development agreements we made with certain of our franchisees in early years, the development fee and the franchise fee were lower. For existing franchisees who do not have a current development agreement, or whose agreements have expired or have otherwise terminated, we may negotiate a one-time fee for each restaurant they develop. We recognize area development fees and franchise fees as income when we have performed all of our material obligations and initial services related to each fee that assist the franchisee in developing and opening the restaurant. Until earned, we account for these fees as deferred revenue, an accrued liability. Our standard form of franchise agreement requires the franchisee to pay a royalty fee equal to 4.0% of adjusted gross restaurant sales. However, certain franchisees pay royalty fees ranging from 3.0% to 3.5% of adjusted gross restaurant sales under agreements we negotiated with those franchisees in prior years.
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Red Robin Gourmet Burgers Inc. has a market cap of $356.1 million; its shares were traded at around $22.83 with a P/E ratio of 27.5 and P/S ratio of 0.4. Red Robin Gourmet Burgers Inc. had an annual average earning growth of 14.2% over the past 10 years.Hedge Fund Gurus that owns RRGB: Bruce Kovner of Caxton Associates, Steven Cohen of SAC Capital Advisors, Jim Simons of Renaissance Technologies LLC. Mutual Fund and Other Gurus that owns RRGB: Chuck Royce of Royce& Associates.
Highlight of Business Operations:
Since 2007, the average sales volumes for each successive class of new restaurant openings ("NROs") has increased, and the restaurant-level profit margins for the 2009 and 2010 NRO classes outperformed the rest of the restaurants in our system. In addition, our average net cash investment for new units continues to decline, currently down to approximately $1.9 million per new restaurant in 2010 from approximately $2.6 million per new restaurant in 2006. This continued progress on new restaurant (NRO) performance in recent years has given us the confidence to continue NRO development into 2011 and 2012. As we explore new development opportunities, we are limiting our new company-owned restaurant growth to 10 units in 2011 and 5 units in 2012. However, we will revisit our developmentUnder our current form of area development agreement, a franchisee must pay us a $10,000 area development fee at the time we execute the agreement for each restaurant the franchisee agrees to develop. When a franchisee opens a new restaurant, pursuant to the development agreement we collect an additional franchise fee of $25,000. Under area development agreements we made with certain of our franchisees in early years, the development fee and the franchise fee were lower. For existing franchisees who do not have a current development agreement, or whose agreements have expired or have otherwise terminated, we may negotiate a one-time fee for each restaurant they develop. We recognize area development fees and franchise fees as income when we have performed all of our material obligations and initial services related to each fee that assist the franchisee in developing and opening the restaurant. Until earned, we account for these fees as deferred revenue, an accrued liability. Our standard form of franchise agreement requires the franchisee to pay a royalty fee equal to 4.0% of adjusted gross restaurant sales. However, certain franchisees pay royalty fees ranging from 3.0% to 3.5% of adjusted gross restaurant sales under agreements we negotiated with those franchisees in prior years.
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