Red Robin Gourmet Burgers Declines As Analyst Downgrades Stock on Poor US Economy

NEW YORK (AP) -- Shares of Red Robin Gourmet Burgers Inc. declined Friday after an analyst downgraded the casual-dining company on soft consumer spending and a higher stock price.

Shares declined $1.59, or 4 percent, to $38.41.

Wachovia Capital Markets analyst Jeff Omohundro downgraded the stock to "Market Perform" from "Outperform" and said a weak U.S. economy may weigh on more affluent casual-dining customers, Red Robin's target customer base.

Omohundro still likes Red Robin for its national cable advertising program, new restaurant openings and its spring 2008 menu. Also, the analyst pointed out that Red Robin posted better-than-expected fourth-quarter results in February.

Over the past three months, Red Robin shares have gained 39.4 percent.