Red Robin Completes Acquisition of 32 Franchised Restaurants in the United States and Canada
July 15 2014 - 8:30AM
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 completed the acquisition of 32 Red
Robin® franchised restaurants in the United States and Canada,
for approximately $40 million from Mach Robin, LLC and Mach Robin,
LLC’s Canadian affiliate. Mach Robin, LLC is a subsidiary of 5B
Investments, Inc.
“This acquisition is a significant step in support of our
expansion strategy. We are pleased to have completed this
acquisition and to welcome over 2,000 team members to engage our
guests in these new corporate locations,” said Steve Carley, Red
Robin Gourmet Burgers, Inc. chief executive officer. “Our plan is
to employ the same strategic approach to enhance the acquired
operations that we utilized so successfully across our
corporate-owned restaurants. Most importantly, we intend to respect
Mach Robin’s long-standing guests and make decisions that will
further cement their relationship and affinity for our brand.”
The 14 U.S. restaurants are located in Illinois,
Idaho, Nevada, New Mexico, and Utah. The 18 Canadian
restaurants are located in the provinces of British Columbia and
Alberta. The Company plans to maintain the Canadian
office in Vancouver, British Columbia.
The acquisition price was paid in cash using borrowings under
the Company’s credit facility. The Company will provide additional
information with regards to the transaction when it reports results
of the fiscal second quarter ended July 13, 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 nearly 500
Red Robin® restaurants across the United States and Canada,
including Red Robin’s Burger Works® locations and
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, strategy, 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: 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; 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.
For media relations questions:Coyne PRMaria Frank,
310-395-6110orFor investor relations questions:Red Robin
Gourmet Burgers, Inc.Stuart Brown, 303-846-6000Chief Financial
Officer
Red Robin Gourmet Burgers (NASDAQ:RRGB)
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