Red Robin

Financing

Red Robin gets some help from its activist investors

JCP Investment Management and Jumana Capital Partners are investing $8.3 million to help the casual-dining burger chain pay down debt. They are also getting two seats on the board.

Financing

Red Robin dials up discounts after 2 years of resistance

The casual-dining burger chain said the deals are needed to compete in the highly promotional market, and are designed to show off its improved food and service.

JCP Investment Management and Jumana Capital acquired nearly 15% of the casual-dining chain’s shares, causing its stock to jump.

Customers say they’re more satisfied with the burger chain’s food and service, but fewer are choosing to visit. That has dimmed the chain's near-term outlook.

Reality Check: Decadent meal choices are also proliferating, for a lot more than $5.

Better operations and food are helping the burger chain win back guests. Now it’s focusing on marketing, including a new loyalty program.

It’s the third such deal over the past year for the chain, which will use the proceeds to pay down debt.

The chain has earmarked $3 million to remind customers of the more than 30 bottomless options on its menu.

The NRA Educational Foundation has also announced its leaders for the coming year.

The move will help offset some of the $8 million per quarter the chain is spending on better food and staffing.

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