Form 4: Red Robin CFO Receives Restricted Stock Unit Grant

Red Robin Gourmet Burgers CFO Mark E. Graff was granted 79,155 time-based restricted stock units as part of an equity incentive award.

Summary

• Mark E. Graff, Chief Financial Officer of Red Robin Gourmet Burgers, Inc. (RRGB), received a grant of 79,155 restricted stock units (RSUs).
• The grant was issued on May 15, 2026, with a closing stock price of $3.77 per share on that date.
• The RSUs are subject to a three-year vesting schedule, with one-third of the units vesting on each of the first, second, and third anniversaries of the grant date.

Sentiment

Score: 5

Explanation: StockSavvy.ai views this as a routine administrative filing regarding executive compensation that does not signal a change in company strategy or financial health.

Positives

• Aligns executive compensation with long-term shareholder interests through a multi-year vesting schedule.
• Demonstrates commitment to retaining key financial leadership.

Negatives

• The grant results in potential future dilution for existing shareholders upon the vesting and issuance of the underlying common stock.

Risks

• Vesting is subject to continued employment, creating potential turnover risk if the executive departs before the three-year period concludes.
• The value of the equity award is highly sensitive to the market performance of RRGB common stock.

Future Outlook

The RSUs will vest in three equal annual installments starting May 15, 2027, contingent upon the reporting person's continued service to the company.

Management Comments

• The grant is made under the terms and conditions of the issuer's 2024 Performance Incentive Plan.

Industry Context

StockSavvy.ai notes that equity-based compensation remains a standard practice in the restaurant industry to incentivize executive retention during periods of market volatility and operational restructuring.

Comparison to Industry Standards

• The three-year vesting schedule is consistent with standard corporate governance practices for executive equity awards in the casual dining sector.
• The use of time-based RSUs is a common retention tool used by competitors such as BJ's Restaurants and Cheesecake Factory.

Stakeholder Impact

• Shareholders may experience minor dilution upon the eventual vesting and conversion of these units into common stock.

Next Steps

• Vesting of the first tranche of 26,385 units on May 15, 2027.
• Vesting of the second tranche of 26,385 units on May 15, 2028.
• Vesting of the final tranche of 26,385 units on May 15, 2029.

Key Dates

Keywords

RRGB, Red Robin, Form 4, Insider Trading, Executive Compensation, Restricted Stock Units