RRGB
Insider buying does not change anything regarding the future of the company.
Red Robin board members GJ Hart, Tom Conforti, Dave Pace, and Steve Lumpkin acquired almost $500,000 worth of shares of the 500-unit casual dining brand at an average price of $7.10 per share in November. Hart, now CEO, joined the board of Red Robin in 2019 and was the former CEO of Torchy's, CPK, and Texas Roadhouse. Conforti was the former CFO for Wyndham and Dinequity. Pace was CEO at Jamba Juice and held executive roles at Bloomin' Brands, Starbucks, Pepsi, and YUM! Lumpkin, the former DineEquity CEO, joined Red Robin's board in 2016. Hart told the audience at ICR he is out to remake the 500-unit casual dining brand, which he said suffered from "degradation of food quality, labor reductions, and underinvestment." Hart said he wants to provide regional and store managers with a piece of the action where they can get monthly bonuses.
CHILI'S Marketing
Chili's Grill & Bar has hired its first VP of marketing as it looks to ramp up its marketing efforts.
We are hosting a Black Book Review of Brinker on Thursday, January 19, at 12:30 PM. We have been bearish on Casual Dining and EAT for the better part of the past two years. While we remain bearish on Casual Dining, EAT has been a company that has struggled for the better part of the last five years, and under new management, there is an opportunity to right-size the ship and improve the four-wall margin and the Chili's brand. The MACRO setup for restaurants remains tenuous for the next six months, but we will be looking to get more aggressive as the year unfolds, and we have a line of sight into better trends in 2H23.
CALL DETAILS:
- Date & Time: Thursday, January 19 at 12:30 PM ET.
- Webcast & Slides: CLICK HERE (Refresh Shortly Before The Call).
- Add To Your Calendar: CLICK HERE
Jesse Johnson previously spent more than 14 years at advertising giant Wieden+Kennedy, where he worked with brands such as Procter & Gamble, Nike Golf, and KFC. In his most recent role as director of growth, he helped expand the firm's social media marketing group, Bodega. He joins Chili's as it reintroduces itself to consumers under new CEO Kevin Hochman. "As we look to be more commercially aggressive, Jesse's expertise and passion for building culturally relevant brands will be a driving force in putting Chili's back in the cultural zeitgeist," said CMO George Felix. Hochman, Felix, and Johnson are familiar with one another from their involvement with KFC's "Return of Colonel Sanders" marketing campaign in 2018. Hochman was president of KFC U.S. at the time, while Felix was the chain's director of brand communications. Johnson worked on the campaign for Wieden+Kennedy. It was named Campaign of the Year that year by Ad Age, and Johnson was awarded Account Director of the Year. When Hochman became CEO of Chili's parent Brinker International in June, Felix was his first hire. Hochman himself is a former CMO. Now Johnson will be tasked with helping them communicate their vision for the 1,600-unit casual-dining chain. "I have a deep-rooted love for the Chili's brand, and I can't wait to work with our marketing and leadership teams and our Team Members to elevate Chili's prominence. I'm excited to use my brand strategy and creative background to help Chili's disrupt the casual dining space."
