Red Robin Cuts TV, Watches Stock Fall

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Investors punished Red Robin Gourmet Burgers today, pushing its stock price down about 24 percent after the company announced it planned to pull all TV advertising this year.

The chain announced the move in a press release on Jan. 14, in which it stated it would cut the number of planned store openings in 2009 and that all company-owned and franchised restaurants in the system will contribute 0.25 percent compared to 1.5 percent in 2008. “The 2009 marketing investment will be directed to a national online advertising effort as well as targeted direct mail campaigns and local restaurant marketing initiatives,” the release stated, adding that the company didn’t plan to run cable advertising this year.

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