Red Robin Gourmet Burgers perks up with activist investors on the prowl

JCP Investment Partnership increased its active stake in Red Robin Gourmet Burgers (NASDAQ:RRGB) to 11.3% from 8.7% through a series of transactions across several related buying parties. The firm sees the restaurant stock as undervalued and representing an attractive investment opportunity.

JCP Investment Partnership is a private investment firm managed by JCP Investment Management, LLC, based in Houston, Texas. The partnership focuses on value-oriented investments and activist strategies, primarily targeting small to mid-cap public companies1. Led by James Pappas, JCP Investment Partnership has a track record of engaging with company management to drive shareholder value. JCP Investment has taken an activist investor role in Jamba, Potbelly (PBPB), and Fiesta Restaurant Group in the past.

The restaurant industry has seen a wave of activist actions, including at larger chains such as Starbucks (SBUX), Bloomin’ Brands (BLMN), and BJ’s Restaurants (BJRI).

Shares of Red Robin Gourmet Burger (RRGB) have perked up over the last week, gaining more than 13%. Short interest on RRGB stands at 14.2% of the total float, which could add some volatility to the mix.