Red Robin Issues Statement in Response to Vintage Capital

Red Robin

Red Robin (NASDAQ:RRGB) last week issued the following statement in response to the 13D filing by Vintage Capital Management, LLC:

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.

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