DineEquity Inc (DIN), Sonic Corporation (SONC), Red Robin Gourmet Burgers, Inc. (RRGB): 3 Restaurants for Your Watchlist

It’s in good shape debt wise, with long-term debt to equity declining 9% and calculating to 44% of stockholder’s equity. Its operating income exceeds interest expense eight times as of the end of last year.

Unlike the other two companies mentioned here, Red Robin Gourmet Burgers, Inc. (NASDAQ:RRGB) owns the majority of its stores. Current turnaround efforts include re-branding initiatives and the opening of new store formats.

Look for this company to continue its focus on the consumer and growing its brand. Red Robin Gourmet Burgers, Inc. (NASDAQ:RRGB) possesses a good set of values that will only help the company and its shareholders over the long-term.

Conclusion

Overall, the turnaround efforts of these three companies should prove beneficial to shareholders. DineEquity Inc (NYSE:DIN)’s move to a nearly 100% franchise model and its purchasing cooperative will enable this company to maximize profit margins over the long-term. Sonic’s re-franchising moves and smaller store formats will help its shareholders as well. Red Robin Gourmet Burgers, Inc. (NASDAQ:RRGB)’s commitment to its customers and re-branding efforts also represent a good idea. Finally, their efforts to pay down debt will do nothing but improve profitability. These companies warrant a place on your Motley Fool Watch List (sign-in required).

William Bias has no position in any stocks mentioned. The Motley Fool recommends Red Robin Gourmet Burgers.

The article 3 Restaurants for Your Watchlist originally appeared on Fool.com.

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