Proven Restaurant Industry Veteran Brings 30+ Years of Operational Experience and Extensive Track Record of Successfully Executing Business Transformations and Creating Significant Shareholder Value
Red Robin Gourmet Burgers, Inc. (NASDAQ: RRGB) announced that Paul J.B. Murphy III has been appointed as President, Chief Executive Officer, and a member of the Company’s Board of Directors, effective October 3, 2019. He succeeds Pattye Moore, who has served as interim Chief Executive Officer since April 2019. This leadership transition is the result of a comprehensive search process and follows the Company’s recently announced board changes, which included the addition of three new independent Board directors with substantial industry experience and the announcement of the pending retirements of three existing board members. Aylwin Lewis and Ms. Moore, who is also Board Chair, will retire from the Board following an appropriate transition period, and Stuart Oran will not stand for re-election in 2020.
Mr. Murphy is a highly accomplished restaurant executive whose significant experience includes:
- Serving as Executive Chairman of Noodles & Company from 2017 to 2019, where he was responsible for 459 restaurants across 29 states. In this role, he led a business turnaround that delivered four consecutive quarters of positive comparable restaurant sales growth on revenues of $457 million.
- Serving as Chief Executive Officer of Del Taco Restaurants, Inc. from 2009 to 2017, where he was responsible for the financial and operational performance of 543 company-operated and franchised restaurants with revenues of $470 million. During his tenure, he led a successful brand repositioning that resulted in 17 consecutive quarters of company-operated comparable restaurant sales growth and 11 consecutive quarters of system-wide comparable restaurant sales growth. Mr. Murphy also took the company public in 2015.
- Serving in leadership positions at Einstein Noah Restaurant Group, Inc. for 11 years, including as President, Chief Executive Officer and board director from 2003 to 2008. He was previously Chief Operating Officer and also held other senior operating roles. During his tenure as President and CEO, Mr. Murphy was responsible for 593 company-operated and franchised restaurants with revenues of $390 million.
“The Board is confident Paul is the right leader to drive the continued transformation of Red Robin and restore the Company to sustainable growth and profitability,” said Ms. Moore. “Paul brings a multi-decade-long track record of substantial shareholder value-creation, as well as a unique combination of operational, brand-positioning and turnaround expertise, making him ideally suited to lead Red Robin. With the support of our experienced Board, I know Paul will be able to leverage his significant experience to further improve the business and position the Company to deliver enhanced operational and financial performance and substantial shareholder value.”
“I am honored to join Red Robin at this pivotal moment in the Company’s transformation,” said Mr. Murphy. “Red Robin is an iconic American brand with tremendous potential, and I am excited to work with the Board and management team as we execute on our significant opportunities to drive improved financial results. Pattye and the team have done an outstanding job of establishing a strong foundation, underscored by the Company’s improved operating and guest satisfaction metrics in the second quarter, and I look forward to building on this momentum as we create value for shareholders, Guests, Team Members and other stakeholders.”