Red Robin Issues Statement in Response to Vintage Capital
June 13 2019 - 2:23PM
Business Wire
Red Robin (NASDAQ:RRGB) (“Red Robin” or the “Company”), a
full-service restaurant chain serving an innovative selection of
high-quality gourmet burgers in a family-friendly atmosphere, today
issued the following statement in response to the 13D filing by
Vintage Capital Management, LLC (“Vintage”):
Red Robin welcomes open dialogue with its
shareholders and appreciates input towards the goal of enhancing
shareholder value.
In multiple conversations with Vintage, we
have expressed our openness to Vintage’s participation in our
ongoing search to identify a world-class CEO, and to maintaining a
constructive dialogue. Given our dialogue to date, we were
surprised by the content of the letter we received today, as
Vintage has not been willing to propose any CEO candidates.
As discussed with Vintage, we retained The
Elliott Group in April 2019 to assist in our CEO search process,
and the Search Committee is interviewing a number of highly
qualified and interested candidates. We are pleased with our
progress to date and confident we will identify an excellent leader
for Red Robin.
Concurrent with our CEO search process, Red
Robin has a strategy in place to drive renewed growth and
shareholder value, and we continue to execute on our 2019 strategic
priorities, including:
- Stabilizing dine-in revenue by
reinforcing Red Robin’s compelling Value proposition;
- Continuing building To-Go and Catering
business;
- Improving the Guest experience and
recapturing Red Robin’s known-for “Gift of Time” convenience;
- Implementing digital platforms and
restaurant technology solutions; and
- Selectively refranchising and
reassessing our real estate portfolio.
Led by our Chair and independent directors,
our Board is actively engaged in driving our strategic plan and
remains open to all opportunities to create value. The Board
comprises established industry leaders with diverse perspectives
and operational expertise, including in the retail and restaurant
industries.
The Company’s Board of Directors is focused
on enhancing shareholder value and is mindful of its fiduciary
duties to all shareholders. Consistent with its fiduciary duties,
the Board would of course consider any bona fide offer made by
Vintage.
Evercore is serving as financial advisor to Red Robin and Paul,
Weiss, Rifkind, Wharton & Garrison LLP is serving as its legal
counsel.
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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682-8253
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ReinhardJoele Frank, Wilkinson Brimmer Katcher(212) 355-4449
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