RRGB
Quality Rating
Red Robin Gourmet Burgers, Inc. (RRGB) operates full-service casual dining restaurants in the Restaurants industry, offering burgers, entrees, and alcoholic beverages. This analysis reveals significant Shariah compliance challenges, primarily due to a debt-to-market-cap ratio of 636.27%, far exceeding all standard thresholds, and business activities involving alcohol sales. While interest and non-permissible income ratios meet criteria, the overall financial structure and core operations lead to non-compliance across major indices and authorities. Investors should consider purification for minor impure income but avoid investment due to disqualifying factors. The compliance quality is rated B, reflecting poor financial metrics offset by low impure income.
Purification Required
Moderate purification required - consider carefully
Index Inclusion
Not included in any major Shariah-compliant indices (S&P, MSCI, FTSE, DJIM).
Key Compliance Considerations
- Debt Ratio: 636.27% (exceeds AAOIFI 30%, MSCI 33.33%, S&P 33% thresholds)
- Business Activity: Alcohol sales in restaurants, classified as non-permissible
Debt Ratio
636.3%
Liquidity Ratio
27.8%
Interest Income Ratio
2.1%
Purification
2.13%