Red Robin Gourmet Burgers issued the following statement on September 11 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.