Company: RRGB
Filing Date: 2025-02-26
Form Type: 10-K
Source: 0001171759-25-000012
Chunk: 112

Company: RED ROBIN GOURMET BURGERS INC
Filing Date: 2025-02-26
Form: 10-K
Item: Item 8
Chunk 112
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 PSU awards use a performance metric based on relative total stockholder return defined as increases in the Company's stock price during a performance period of three years as compared to the total stockholder return of a group of peer companies. Fair value of each PSU granted is determined by a Monte Carlo valuation model, and expense is recognized straight line over the performance period. PSUs remain unvested until the last day of the three-year performance period and are generally forfeited in the event of termination of employment of a grantee prior to the last day of the three-year performance period. If the relative total stockholder return target is not met, compensation cost for these PSUs is not reversed.The table below summarizes the status of the Company's performance stock units under the 2017 Stock Plan and the 2024 Stock Plan (shares in thousands):Performance Stock UnitsSharesWeighted Average Grant-Date Fair Value (per share)Outstanding, December 31, 2023427 $23.38 Awarded552 9.11 Forfeited(43)14.23 Vested— — Outstanding, December 29, 2024(1)936 $13.62 (1)     Awards expected to vest are the result of applying the pre-vesting forfeiture rate assumption to total outstanding awards. The Company applies estimated forfeiture rates that are derived from our historical forfeitures of similar awards.Inducement GrantsIn prior years, the Company granted stock-based awards to certain of the Company’s new executive officers as inducements material to their commencement of employment and entry into an employment agreement with the Company. The inducement grants were made in accordance with Nasdaq Listing Rule 5635(c)(4) and were not made under the 2017 Plan.The inducement grants, which include PSU and RSU awards, are generally subject to substantially the same terms and conditions as grants that are made under the 2017 Plan and fair value is determined in the same manner as described for each grant type above.The table below summarizes the status of the Company' inducement grants (shares in thousands):Restricted Stock UnitsPerformance Stock UnitsSharesWeighted Average Grant-Date Fair Value (per share)SharesWeighted Average Grant-Date Fair Value (per share)Outstanding, December 31, 2023125 $7.57 124 $6.13 Awarded— — — — Forfeited— — — — Vested(