Red Robin sells 30 locations in refranchising deal

Red Robin Gourmet Burgers has reached an agreement to sell a collection of restaurants in Washington and western Idaho.

Evergreen Dining LLC has purchased 30 locations, which will continue to operate under the Red Robin banner. The terms of the deal call for Red Robin to receive $23.5 million in cash. Proceeds are being used to pay down outstanding debt, Red Robin said.

Based in Washington, Evergreen Dining principals have run more than 100 restaurant locations for nearly 30 years. The company has more than 1,200 employees.

Founded in Seattle in 1940, Red Robin operates close to 500 locations. This includes about 20% of its restaurants operating under franchise agreements. Refranchising select locations and selling select restaurants to operating partners is part of Red Robin’s “First Choice” plan. Launched last summer, the plan is designed to drive long-term shareholder value while reinvesting in the company and improving operations.

“Since launching our First Choice Plan last year, we have been focused on finding franchise partners who share our values and commitment to delighting guests,” said Dave Pace, CEO and president of Red Robin. “We are confident Evergreen Dining is the right partner to accelerate growth at these locations while also helping us strengthen our balance sheet, improve our capital structure, and enhance our financial flexibility as we evaluate potential refinancing partners. This exciting next chapter with Evergreen Dining would not have been possible without our talented team members who have worked tirelessly to execute on our First Choice Plan and help us strengthen our competitive position.”

In a statement issued by Evergreen Dining, the company said, “Red Robin has been bringing Washingtonians and Idahoans together for moments of connection since 1969. We look forward to partnering with the talented teams in each location to solidify Red Robin’s position as the First Choice in these communities, while still offering the same juicy burgers, bottomless fries and exceptional hospitality guests have enjoyed for almost six decades.”

According to Red Robin, the deal is expected to close in the second half of 2026.