Industry News | December 27, 2006

Red Robin Gourmet Burgers, Inc., has acquired the Puyallup restaurant in the state of Washington.

Red Robin Gourmet Burgers, Inc., the casual dining company that serves its guests an imaginative selection of high-quality gourmet burgers and innovative menu items in a family-friendly environment, has acquired the Puyallup restaurant in the state of Washington.

The Puyallup restaurant is the final Red Robin® restaurant to be acquired under the previously announced acquisition of 13 restaurants operated by Great Western Dining. This restaurant has been operated by the Company under a management services agreement since July 10, 2006, when the company acquired the first 11 restaurants. The net proceeds paid at the final closing for the Puyallup restaurant were approximately $5.0 million, which were paid in cash.

The Company expects to record a one-time charge of approximately $0.01 per diluted share in the fourth quarter of fiscal 2006 relating to the termination of the franchise agreement for the Puyallup restaurant as it operated at a royalty rate lower than current market royalty rates. For accounting purposes, the financial results from all 13 restaurants have been consolidated in the Company's financial results since July 10, 2006.

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