Red Robin names industry veteran Paul Murphy as new CEO
Chain also announces rejection of buyout offer from Vintage
Nancy Luna, Nation's Restaurant News
Sep 05, 2019
Red Robin Gourmet Burgers Inc. has named veteran executive Paul J.B. Murphy III, formerly of Noodles & Co. and Del Taco, as the distressed company’s new CEO. The Greenwood Village, Colo.-based casual-dining brand also announced Thursday that it has rejected the unsolicited buyout offer Vintage Capital Management LLC.
The activist investor in early June called for an auction and said it would buy Red Robin at $40 a share. The board announced the unanimous decision Thursday morning in a regulatory filing, effectively ending a summer-long saga with Vintage over the company’s direction and leadership.
“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 long-term value to its shareholders than Vintage’s proposal,” the company said in the filing. “In addition...