JCP Investment Management, LLC and
Jumana Capital, LLC Invest An Additional $8.3 Million to Pay Down Debt and Support
Strategy, Demonstrating Long-term Commitment to Brand
James C. Pappas
and Christopher Martin added to
Board of Directors
Enters into Agreement with JCP Investment
Management, LLC and Jumana Capital, LLC
ENGLEWOOD, Colo., Dec. 3, 2024
/PRNewswire/ -- Red Robin Gourmet Burgers, Inc. (NASDAQ: RRGB)
("Red Robin" or the "Company"), a full-service restaurant chain
serving an innovative selection of high-quality gourmet burgers in
a family-friendly atmosphere, today announced that affiliates of
JCP Investment Management, LLC ("JCP") and Jumana Capital, LLC
("Jumana") invested an additional $8.3 million into
the Company, strengthening its balance sheet and
demonstrating their long-term commitment to the strategy and brand.
Additionally, the Company announced the appointment
of James C. Pappas and Christopher
Martin to its Board of Directors (the "Board"), pursuant to
a cooperation agreement (the "Agreement") with JCP and
Jumana (the "Investor Parties").
Upon Mr. Pappas' and Mr. Martin's respective appointments, the
Board will expand to 10 directors, nine of whom will
be independent.
"JCP's and Jumana's additional investments demonstrate their
commitment and belief in the future of Red Robin," said
David A. Pace, Chairman of the
Board. "We are pleased to welcome James and
Chris to Red Robin's Board of Directors and look forward to
their contributions and expertise as we continue to execute on
our strategy for the comeback of this beloved
brand. James brings significant experience in board roles
at restaurant brands in similar phases of revitalization
and Chris adds both industry and financial expertise
that will be important to our progress."
Pursuant to the Agreement, Mr. Pappas and Mr. Martin will
be nominated by the Board to stand for election for a full term at
the Company's 2025 Annual Meeting of Stockholders.
Mr. Pappas stated on behalf of the Investor Parties: "We
appreciate the dialogue we have had with Red Robin and are
supportive of the Company's strategy and management team.
From day one, our focus will be to help decrease debt through our
investment proceeds, increased operating cash flow and the
thoughtful exploration and consideration of other debt reduction
options available, including the potential for selective
franchising of some company-operated restaurants.
Strengthening the balance sheet positions Red Robin to continue to
deliver fantastic and craveable burgers every day while also
building long-term shareholder value."
Additionally, the Company entered into an equity purchase
agreement with certain affiliates of the Investor Parties pursuant
to which the Company agreed to issue and sell to them an aggregate
of 1,600,909 shares of the Company's common stock, at a
purchase price of $5.19 per share,
pursuant to a private placement (the "Private Placement") that
is exempt from registration under the Securities Act of 1933,
as amended. The aggregate gross proceeds from the Private
Placement are expected to be approximately $8.3 million. The net proceeds from the Private
Placement will be used to repay indebtedness and for general
corporate expenses.
Additional information on the Agreement and the Private
Placement can be found in the Company's Form 8-K filed today with
the Securities and Exchange Commission.
About James C. Pappas
Mr. Pappas founded JCP Investment Management in Houston in June
2009 and is the Managing Member and owner of the firm. He
has served as a director of United Natural Foods, Inc. (NYSE:
UNFI), a food distributor to grocery stores, since September
2023. Additionally, he has been the chairman of the board of
directors of Innovative Food Holdings, Inc. (OTCQB: IVFH), a
direct-to-chef and restaurant specialty food platform, since 2023,
and a director since 2020. Mr. Pappas is also a director of Tandy
Leather Factory, Inc. (NASDAQ: TLF), a specialty retailer and
wholesale distributor of leather and leather related products, a
position he has held since 2016. Mr. Pappas previously served on
the boards of several other public companies, including
food-related businesses such as Jamba, Inc., The Pantry, Inc., and
Morgan's Foods, Inc., as well as U.S. Geothermal Inc. From 2007
until 2009, he was a private investor, in addition to consulting
with several businesses. From 2005 until 2007, he worked in the
Investment Banking/Leveraged Finance Division of Goldman Sachs,
where he advised private equity groups and corporations on
appropriate leveraged buyout, recapitalization and refinancing
alternatives. Prior to that, he was an investment banker at Banc of
America Securities, where he focused on consumer and retail
investment banking. He currently also serves as Secretary for the
Endowment Advisory Board of the Annunciation Greek Orthodox Church
in Houston and on the Methodist
Hospital Gastro Division's Advisory Board in Houston. Mr. Pappas received a BBA in
Information Technology, and a Master of Finance from
Texas A&M University.
About Christopher
Martin
Mr. Martin has served as a Managing Director of Jumana Capital,
LLC, a private investment firm specializing in concentrated
investments in middle market companies, since July 2020, where he is responsible for investment
strategy and execution across the portfolio, and serves as the
Manager of Jumana Capital Investments LLC, an affiliated investment
entity. Previously, Mr. Martin served as a Vice President at
Hastings Equity Partners, LLC, a private equity firm, from
July 2017 until July 2020. Mr. Martin also previously served as
the Chief Financial Officer of Specialty Welding & Turnarounds,
LLC, an industrial services company, from October 2017 through January 2020. Prior to that, Mr. Martin was a
Vice President at Simmons & Company International, part of the
Piper Sandler Companies (NYSE: PIPR), from July 2013 to July
2017. Mr. Martin began his career at FTI Consulting, Inc.
(NYSE: FCN), a global advisory firm, in the Corporate Finance and
Restructuring group. Mr. Martin holds an MBA from the University of Texas at Austin and a BBA from
Texas Christian University.
Red Robin Gourmet Burgers, Inc. (NASDAQ: RRGB)
Red Robin Gourmet Burgers, Inc. (www.redrobin.com), is a casual
dining restaurant chain founded in 1969 that operates through its
wholly-owned subsidiary, Red Robin International, Inc., and under
the trade name, Red Robin Gourmet Burgers and Brews. We believe
nothing brings people together like burgers and fun around our
table, and no one makes moments of connection over craveable food
more memorable than Red Robin. We serve a variety of burgers and
mainstream favorites to Guests of all ages in a casual, playful
atmosphere. In addition to our many burger offerings, Red Robin
serves a wide array of salads, appetizers, entrees, desserts,
signature beverages and Donatos® pizza at select locations. It's
now easy to enjoy Red Robin anywhere with online ordering available
for to-go, delivery and catering, or you can download our new app
for easy customization, access to the Red Robin Royalty® dashboard
and more. There are approximately 500 Red Robin restaurants across
the United States and Canada, including those operating under
franchise agreements. Red Robin… YUMMM®!
Forward-Looking Statements
Forward-looking statements in this press release regarding our
future operating or financial performance, our strategy and ability
to execute and drive long term shareholder value, the expected
activities in connection with the Investor Parties, 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. Without limiting the generality of the
foregoing, words such as "expect," "believe," "anticipate,"
"intend," "plan," "project," "could," "should," "will," "outlook"
or "estimate," or the negative or other variations thereof or
comparable terminology are intended to identify forward-looking
statements. Except as required by law, the Company undertakes no
obligation to update such statements to reflect events or
circumstances arising after such date and cautions investors not to
place undue reliance on any such forward-looking statements.
Forward-looking statements are subject to various risks and
uncertainties that could cause actual results to differ materially
from those cautionary statements and 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.
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SOURCE Red Robin Gourmet Burgers, Inc.
