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3 Restaurant Stocks Ready to Fizzle

These stocks are sizzling, but not for long

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Red Robin Gourmet Burgers

RedRobinBurgersLogo 150x150 3 Restaurant Stocks Ready to FizzleThe good old hamburger is alive and well in the U.S. But beef prices are ludicrously high and could be the trigger for a good old crash diet for a name like Red Robin Gourmet Burgers.

Red Robin (RRGB) reports its earnings results on Tuesday before the market opens. The stock is up over 130% in the last year of trading. Analysts expect the company to grow profits by 18% in 2014. That is a very respectable number.

The question is would you be willing to pay 33 times 2013 estimated earnings for that growth? I sure wouldn’t.

Given the risk of an earnings miss, the risks are tremendous. The stock could drop 30% easily if there is a miss.


Article printed from InvestorPlace Media, http://investorplace.com/2013/11/stocks-to-sell-restaurant-stocks-wen-cmg-bwld/.

©2014 InvestorPlace Media, LLC

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