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.
Copyright Business Wire 2014