Business Context and Reporting Period
Company: Red Robin Gourmet Burgers, Inc.
Filing Type: Form 8-K (Current Report)
Date of Report: April 15, 2008
Event: Entry into a Material Definitive Agreement for the acquisition of franchised restaurants.
Key Financial Metrics
This filing details a specific transaction rather than periodic financial results. The following transaction-specific financial data is provided:
- Acquisition of 11 Restaurants: Purchase price of $20.9 million (subject to working capital adjustments).
- Acquisition of NCW (1 Restaurant): Consideration of $247,000 in cash plus assumption of indebtedness totaling $849,878.29.
- Total Transaction Value: Approximately $21.997 million (excluding working capital adjustments).
- Funding Source: Cash funded through borrowings under the existing credit facility.
The filing text does not provide clear values for revenue, profit, cash flow, margins, or overall debt levels outside of the specific transaction details.
Material Changes
On April 15, 2008, Red Robin International, Inc. (a wholly owned subsidiary) entered into an Asset Purchase Agreement to acquire eleven franchised Red Robin restaurants in Wisconsin and Minnesota. Simultaneously, the company acquired the outstanding stock of North Central Wisconsin Robins, Inc. (NCW), which owns one restaurant under construction expected to open in May 2008.
Guidance, Outlook, and Risks
Outlook: The company expects to close the acquisition of the eleven restaurants early in the second quarter of 2008, subject to customary conditions precedent.
Risks and Contingencies: The filing includes forward-looking statements subject to risks including:
- Delays or failure to obtain governmental and third-party consents.
- Ability to successfully complete the acquisition and integrate the restaurants.
- Changes in the availability of capital or credit facility borrowings.
- Ability to complete construction and opening of the NCW restaurant in a timely manner.
Investor Verification Checklist
- Verify the closing date of the $20.9 million acquisition in Q2 2008.
- Confirm the final purchase price after working capital adjustments.
- Monitor the impact of the new debt on the company's existing credit facility capacity.
- Track the opening timeline of the NCW restaurant scheduled for May 2008.
- Review subsequent 10-Q filings for integration progress and financial impact.