Red Robin Gourmet Burgers, Inc. (NASDAQ:RRGB), currently trading at $3.17 with a market capitalization of $56 million, reported the outcomes of its annual stockholders meeting held on May 22, 2025. According to InvestingPro analysis, the company faces significant financial challenges, with a weak overall health score. The meeting saw a strong turnout with approximately 77.65% of outstanding shares represented.
During the meeting, all nine directors nominated by the board were elected to serve for one-year terms. The votes cast for each director exceeded 98.7%, showcasing solid stockholder support.
Additionally, stockholders approved, on an advisory basis, the compensation of the company’s named executive officers, with approximately 91.85% voting in favor.
However, two proposals to amend the company’s Restated Certificate of Incorporation did not receive the necessary support. The first proposal, which aimed to provide for officer exculpation as permitted by Delaware law, received only 48.51% of the shares outstanding, failing to achieve the majority required. The second proposal, seeking to eliminate supermajority vote requirements and make certain administrative amendments, garnered 51.71% of the shares outstanding, falling short of the required two-thirds majority.
Lastly, stockholders ratified the appointment of Deloitte & Touche LLP as the company’s independent registered public accounting firm for the fiscal year 2025, with an overwhelming 95.13% of votes cast in favor.
This SEC filing report is based on the official statement released by Red Robin Gourmet Burgers, Inc. For a comprehensive analysis of Red Robin’s financial health and future prospects, including 15+ additional exclusive insights, visit InvestingPro for the detailed Pro Research Report.
In other recent news, Red Robin Gourmet Burgers has announced significant developments that may interest investors. The company anticipates its first-quarter Adjusted EBITDA for 2025 to exceed previous guidance of $18 million to $19 million, reflecting positive financial expectations. Additionally, Red Robin has reported a projected first-quarter comparable restaurant sales increase of approximately 3%. However, the company faced challenges in the fourth quarter of 2024, with earnings per share (EPS) of -0.94, significantly missing the forecasted -0.29, and revenue falling short at $258.2 million against an expected $285.62 million.
In a major leadership change, David Pace has taken over as President and CEO from G.J. Hart, who will continue as an advisor until September. Analysts from Benchmark and Craig-Hallum have maintained a Buy rating on Red Robin, with price targets set at $12 and $11, respectively. Analyst Todd Brooks from Benchmark expressed confidence in Pace’s ability to lead the company, while Jeremy Hamblin from Craig-Hallum highlighted Pace’s industry expertise and successful tenure at Jamba Juice. The company also launched a new promotion, the Bottomless Burger Pass, which initially faced technical issues due to high demand, yet demonstrated strong customer interest.
Red Robin plans to close 10-15 underperforming restaurants in 2025 as part of its strategy to reaccelerate growth and improve financial strength. The company continues to focus on enhancing marketing efforts and operational improvements under its strategic "North Star" plan. These developments indicate Red Robin’s ongoing efforts to refine its operations and elevate its brand in the competitive casual dining sector.
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