Red Robin Chain Buys Franchise Locations

Red Robin Gourmet Burgers Buys Assets of 4 Franchise Restaurants for $8.1 Million

(Thursday, January 17, 2008) - Casual dining chain Red Robin Gourmet Burgers Inc. said Thursday it will buy the assets of four Red Robin franchise restaurants for a total of $8.1 million.

The company also expects to buy development rights to the regions that were included in exclusivity provisions in the franchise agreements. Three of the franchised restaurants are located in northern Indiana and one is located in South Plainfield, New Jersey, the company said.

Red Robin said the combined revenue from the four restaurants was $10.7 million in 2007.

The acquisitions are expected to close in the second quarter of 2008. The dining chain said it will fund the transactions through borrowings under its credit facility.

Red Robin shares fell $1.15, or 3.9 percent, to close at $28.53.

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