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Red Robin - RRGB - close: 43.99 chg: -1.69 stop: 46.51

Company Description:
Red Robin Gourmet Burgers, Inc., founded in 1969, is a casual dining restaurant chain that serves up wholesome, fun, feel-good experiences in a family-friendly environment. Red Robin restaurants are famous for serving more than 22 high-quality gourmet burgers in a variety of recipes with Bottomless Steak Fries(TM), as well as salads, soups, appetizers, entrees, desserts, and signature Mad Mixology Beverages. There are more than 310 Red Robin restaurants located across the United States and Canada, which include both corporate-owned locations and those operating under franchise or license agreements. (source: company press release or website)

Why We Like It:
RRGB's upward momentum has stalled. The stock has struggled to breakout over its simple 200-dma for the last month and now shares are breaking down again. Today's drop under the $45.00 level and technical support at the 100-dma and 50-dma looks pretty bearish. Sparking the move today looks like a press release from S&P Equity research. The analyst firm believes that higher gasoline prices will impact family dining. If you study the weekly chart it looks like RRGB is rolling over under the top of its descending/bearish channel. We are going to target a decline into the $40.25-40.00 range. More aggressive traders may want to aim lower. We'll plan to exit ahead of the mid-May earnings report.

Picked on April 26 at $43.99
Change since picked: + 0.00
Earnings Date 05/17/06 (unconfirmed)
Average Daily Volume: 355 thousand
 

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