Top 5 Restaurant Stocks Under $10

2. Red Robin Gourmet Burgers, Inc. (NASDAQ:RRGB)

Number of Hedge Fund Holders: 18

Stock Price: $8.20

Red Robin Gourmet Burgers, Inc. (NASDAQ:RRGB) is a Greenwood Village, Colorado-based operator of casual dining restaurants.

Over 81% of the locations are company-owned, while the rest are franchisee-owned. Red Robin Gourmet Burgers, Inc. (NASDAQ:RRGB) operates on a high-low strategy that allows them to introduce innovative offerings for a limited time at a high price, resulting in healthy margins. Meanwhile, through attractive promotions, Red Robin Gourmet Burgers, Inc. (NASDAQ:RRGB) generates strong sales by attracting less affluent customers too. In Q3 2022, increased pricing and positive menu mix shifts drove the 4.2% gain in overall company revenue to $286.9 million, an increase of $11.4 million from the same period a year earlier. Furthermore, the company’s royalty membership program has expanded to include 11 million members as of Q3, allowing the company to increase brand loyalty by offering rewards to consumers.

As of Q2 2022, Red Robin Gourmet Burgers, Inc. (NASDAQ:RRGB) was held by 18 hedge funds.