Red Robin Issues Statement in Response to Vintage Capital
September 11 2019 - 8:30AM
Business Wire
Red Robin Gourmet Burgers, Inc. (NASDAQ: RRGB) (“Red Robin” or
the “Company”) today issued the following statement in response to
a letter from Vintage Capital Management, LLC (“Vintage”) dated
September 10, 2019:
The Red Robin Board and management team are
focused on executing the Company’s strategic plan to restore growth
and improve profitability. The Board appreciates input from all
shareholders toward our shared goal of enhancing value and will
continue to review the Company’s strategic priorities against all
potential opportunities to create shareholder value.
Consistent with our stated priorities, last
week we announced that Paul J.B. Murphy III will join Red Robin as
President, Chief Executive Officer and a member of the Company’s
Board of Directors, effective October 3, 2019. Mr. Murphy is a
proven restaurant industry executive with more than 30 years of
operational, brand-positioning and turnaround expertise, as well as
an extensive track record of creating significant shareholder
value. We are excited about the Company’s potential to improve
customer experience, significantly improve cash flow and increase
profitability.
As previously announced, the Red Robin Board carefully reviewed
and considered Vintage’s proposal, consistent with its fiduciary
duties and in consultation with its legal and financial advisors.
The Board unanimously determined that the proposal undervalues Red
Robin and is not in the best interests of all shareholders, as the
strategic plan currently being implemented by Red Robin positions
the Company to deliver greater value to its shareholders than
Vintage’s proposal.
About Red Robin
Red Robin Gourmet Burgers, Inc. (www.redrobin.com), a casual
dining restaurant chain founded in 1969 that operates through its
wholly-owned subsidiary, Red Robin International, Inc., and under
the trade name Red Robin Gourmet Burgers and Brews, is the Gourmet
Burger Authority™, famous for serving more than two dozen
craveable, high-quality burgers with Bottomless Steak Fries® in a
fun environment welcoming to Guests of all ages. Whether a family
dining with kids, adults grabbing a drink at the bar, or teens
enjoying a meal, Red Robin offers an unparalleled experience for
its Guests. In addition to its many burger offerings, Red Robin
serves a wide variety of salads, soups, appetizers, entrees,
desserts, and signature beverages. Red Robin offers a variety of
options behind the bar, including its extensive selection of local
and regional beers, and innovative adult beer shakes and cocktails,
earning the restaurant a VIBE Vista Award for Best Beer Program in
a Multi-Unit Chain Restaurant. There are more than 560 Red Robin
restaurants across the United States and Canada, including
locations operating under franchise agreements. Red Robin… YUMMM®!
Connect with Red Robin on Facebook, Instagram, and Twitter.
Forward-Looking Statements
Forward-looking statements in this press release are made under
the safe harbor provisions of the Private Securities Litigation
Reform Act of 1995. These statements are based on assumptions
believed by the Company to be reasonable and speak only as of the
date on which such statements are made. Except as required by law,
the Company undertakes no obligation to update such statements to
reflect events or circumstances arising after such date, and
cautions investors not to place undue reliance on any such
forward-looking statements. Forward-looking statements involve
risks and uncertainties that could cause actual results to differ
materially from those described in the statements based on a number
of factors, including but not limited to the following: the
effectiveness of the Company’s strategic initiatives, including the
effectiveness of the Company’s affordability, service improvement,
technology, and off-site initiatives to drive traffic and sales;
the ability to increase labor productivity through alternative
labor models, and to train the Company's workforce for service
execution complexities related to growth of multiple revenue
streams in the restaurant; the success of the Company's
refranchising efforts; and other risk factors described from time
to time in the Company’s Form 10-K, Form 10-Q, and Form 8-K reports
(including all amendments to those reports) filed with the U.S.
Securities and Exchange Commission.
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For investor relations questions: Raphael Gross, ICR
(203) 682-8253
For media questions: Jim Golden / Tim Lynch / Aura
Reinhard Joele Frank, Wilkinson Brimmer Katcher (212) 355-4449
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