Form 4: Red Robin Legal Chief Sells Shares for Tax Obligations

Red Robin's Chief Legal Officer, Sarah A. Mussetter, sold 2,800 shares of common stock to cover tax obligations related to RSU vesting.

Summary

• Sarah A. Mussetter, Chief Legal Officer of Red Robin Gourmet Burgers Inc. (RRGB), sold 2,800 shares of common stock.
• The transaction occurred on December 9, 2025, at a price of $3.8801 per share.
• This sale was a 'sell-to-cover' transaction, executed to satisfy tax withholding obligations and fees.
• The tax obligations arose from the vesting of 6,345 time-based restricted stock units (RSUs) that were granted to Mussetter on December 8, 2022.
• The sale was not a discretionary trade by the reporting person.
• Following this transaction, Mussetter beneficially owns 110,677 shares of common stock.
• The beneficially owned shares include 81,817 time-based restricted stock units that are still subject to vesting and forfeiture restrictions.

Sentiment

Score: 5

Explanation: This is a routine, non-discretionary transaction for tax purposes related to executive compensation, which typically has a neutral impact on market sentiment.

Positives

• The vesting of 6,345 time-based restricted stock units indicates successful retention and compensation of a key executive, aligning management interests with shareholder value over time.

Negatives

• The sale of shares by an executive, even for tax purposes, reduces their direct equity stake in the company, though this is a common and non-discretionary event.

Future Outlook

NA

Industry Context

This Form 4 filing details a routine executive compensation event, specifically a 'sell-to-cover' transaction, which is common across industries for executives receiving equity-based compensation. It does not provide insights into broader industry trends for the restaurant sector.

Comparison to Industry Standards

• Sell-to-cover transactions are a standard practice for executives across various industries, including the restaurant sector, to manage tax liabilities arising from the vesting of equity awards. This practice is consistent with compensation structures seen in comparable companies.

Stakeholder Impact

• Shareholders: Minimal direct impact as this is a routine, non-discretionary sale for tax purposes and represents a small fraction of the company's outstanding shares.
• Employees: No direct impact.
• Customers, Suppliers, Creditors: No direct impact.

Key Dates

Recommendation

This Form 4 filing reports a routine 'sell-to-cover' transaction by a Chief Legal Officer to satisfy tax obligations upon the vesting of restricted stock units. It is not a discretionary sale indicating a change in sentiment or outlook by the executive. As such, it provides no new fundamental information to alter an investment thesis, and a 'hold' recommendation is appropriate based solely on this filing.

Keywords

RRGB, Red Robin, insider transaction, Form 4, executive compensation, stock sale, restricted stock units, sell-to-cover, Sarah A. Mussetter