GREENWOOD VILLAGE, Colo. – Shares of Red Robin Gourmet Burgers jumped 17 percent in during extended trading on news the company received an unsolicited conditional proposal from Vintage Capital Management LLC to acquire all outstanding common shares of the burger chain for $40 per share in cash.
“Red Robin’s Board of Directors and management team are committed to acting in the best interests of the company and all shareholders,” the company said in a statement. “Consistent with its fiduciary duties and in consultation with its independent legal and financial advisors, the Red Robin board will carefully review and consider the proposal to determine the course of action it believes is in the best interests of the company’s shareholders.”
The company posted disappointing results for the first quarter of 2019. Comparable restaurant revenue dropped 3.3 percent using constant currency rates; while comparable restaurant guest counts fell 5.5 percent. This was partially offset by a 2.2 percent increase in average guest check which was comprised of a 0.3 percent increase in menu mix and a 1.9 percent increase in pricing, the company noted.
Total revenues declined 2.8 percent to $409.9 million from $421.5 million reported in the first quarter of 2018.
Net income for the quarter was $0.6 million in the first quarter compared with $4.4 million in the year-ago period. Adjusted net income was $2.4 million for the first quarter of 2019 compared to $9.1 million for the same period a year ago.