Red Robin Announces Agreements to Acquire 32 Franchised Restaurants in the United States and Canada
April 30 2014 - 9:15AM
Business Wire
Red Robin Gourmet Burgers, Inc. (NASDAQ:RRGB), a casual dining
restaurant chain focused on serving an innovative selection of
high-quality gourmet burgers in a family-friendly atmosphere, today
announced it has signed purchase
agreements to acquire 32 Red
Robin® franchised restaurants in the United States
and Canada, for approximately $40 million. The
acquisition is expected to
close late summer 2014 pending completion
of certain closing conditions.
“We are excited for the opportunity to acquire a group of
established Red Robin restaurants and welcome the over
2,500 team members who have been instrumental to their
success in these markets,” said Steve Carley, Red Robin
Gourmet Burgers, Inc. chief executive officer.
The 14 U.S. restaurants, currently owned
by Mach Robin, LLC, are located in Illinois,
Idaho, Nevada, New Mexico and
Utah. The 18 Canadian restaurants, currently
owned by Mach Robin, LLC’s Canadian affiliate, are
located in the provinces of British
Columbia and Alberta, where Red
Robin franchises have been operating since
1985. The current owners are subsidiaries of 5B Investments,
Inc. The Company plans to maintain the corporate
office in Vancouver. The acquired restaurants are
expected to generate combined annual revenues of
approximately $88 million.
All of the Red Robin restaurants being
acquired will remain open for business during the
transition, continuing to bring loyal Guests
the craveable burgers and signature beverages
they have come to expect from Red Robin.
Management will discuss the transaction in further detail on the
first quarter 2014 earnings conference call, which will be held on
May 20, 2014.
About Red Robin Gourmet Burgers, Inc. (NASDAQ: RRGB):
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., 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. In addition to its
many burger offerings, Red Robin serves a wide variety of salads,
soups, appetizers, entrees, desserts and signature Mad Mixology®
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, recently earning the
restaurant the 2014 VIBE Vista Award for Best Beer Program in a
Multi-Unit Chain Restaurant. There are 500 Red Robin restaurants
across the United States and Canada, including those operating
under franchise agreements. Red Robin… YUMMM®! Connect with Red
Robin on Facebook and Twitter.
About 5B Investments, Inc:
5B Investments, Inc (www.5binvestments.com), founded in 1989, is
a privately held corporation holding interests in commercial,
industrial, residential, self-storage, and restaurant projects
throughout the U.S and Canada exceeding revenues of $100
million.
Forward-Looking Statements:
Forward-looking statements in this press release regarding our
expectations, plans, anticipated benefits and annual revenues
related to the acquisition, timing of closing, intent to maintain
the Canadian office location, and all other statements that are not
historical facts, 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. We
undertake no obligation to update such statements to reflect events
or circumstances arising after such date, and we caution 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: delays associated with or failure
to obtain governmental and third-party consents; our ability to
integrate the acquired restaurants and operate them as expected;
our ability to successfully integrate personnel at the acquired
restaurants; effectiveness of our management strategies and
decisions; changes in availability of capital or credit facility
borrowings; ability of the acquired restaurants to meet certain
earnings targets; 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.
Media Relations:Coyne PRMaria Frank,
310-395-6110Investor Relations:Stuart Brown, Chief Financial
Officer303-846-6000
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