Red Robin Sells 108 Restaurants for $89.4 Million
Red Robin Gourmet Burgers, Inc. has completed the sale of 108 company-owned restaurants for $89.4 million, marking a significant step in the company’s strategic realignment. The remaining eight restaurants are expected to close by the end of the company’s 2026 fiscal year, generating an additional $6.6 million. This move is part of Red Robin’s First Choice Plan, aimed at strengthening its balance sheet and preparing for sustainable, long-term growth.
Under the refranchising agreements, experienced multi-unit restaurant operators will take over and continue to operate these locations under the Red Robin brand. Op Burgers, LLC, a portfolio company of Alexandrite Management, has acquired a total of 69 restaurants, with 61 already closed and the remaining eight expected to be operational by the end of the fiscal year. Kuber Management, through Kuber Oregon, LLC and Kuber Washington, LLC, has acquired 17 restaurants in Oregon and Washington, and Evergreen Dining LLC has taken over 30 restaurants in Washington and Western Idaho.
Dave Pace, President and CEO of Red Robin, stated, “Our team has made significant progress in executing our First Choice Plan. The completion of these refranchising agreements is a critical step in strengthening our balance sheet and positioning our business for sustainable, long-term growth. These seasoned operators share our hospitality-first mindset and bring the resources needed to accelerate growth across these markets while delivering an exceptional guest experience.”
The operators expressed their enthusiasm for the partnership. Op Burgers said, “We are excited to become Red Robin franchise owners and leverage our insights to support the teams at these restaurants.” Kuber stated, “Red Robin has developed a loyal following in the Pacific Northwest, and we look forward to partnering with the dedicated restaurant teams to build on the brand’s success.” Evergreen Dining added, “We are ready to roll up our sleeves and help the Red Robin team solidify its position as the First Choice in communities across Washington and Idaho and continue growing the business for years to come.”
Red Robin plans to use the net proceeds to pay down outstanding debt and execute on its refinancing priorities as outlined in its First Choice Plan. The company is also committed to reinvesting in its restaurants and technologies to enhance the guest experience.
The transactions are subject to certain conditions, including the transfer of applicable liquor licenses for the remaining eight restaurants. Red Robin expects these transactions to advance its debt refinancing efforts and increase financial flexibility.
Further details on the transactions are available in the company’s Form 8-K to be filed with the Securities and Exchange Commission.