Red Robin to sell 86 restaurants to franchisees for $72.5M

Red Robin is selling 86 more restaurants to franchisees as part of an ongoing effort to pay down debt. The company will get $72.5 million for the restaurants in two separate deals.

Op Burgers will acquire 69 units in Kentucky, Indiana, Maryland, Ohio, North Carolina, Pennsylvania, South Carolina, and Virginia for $62.5 million.

Kuber Oregon and Kuber Washington will acquire 17 units in Oregon and Washington for $10 million.

Franchise deals

Last month, Red Robin agreed to sell 30 locations in Washington and Idaho to Evergreen Dining for $23.5 million.

After the transactions close, these groups will continue operating the restaurants as franchisees.

The company will use the proceeds to pay down and refinance debt as part of its First Choice turnaround plan. As of April 19, Red Robin had more than $171 million in long-term debt. It will raise a total of $96 million through refranchising, assuming all of the deals go through.

The 116 units set to change hands account for nearly a quarter of Red Robin’s unit count of about 475 locations. When the deals are complete, more than 200 of the chain’s restaurants will be operated by franchisees, or about 43% of the system.

Company outlook

CEO Dave Pace said the new franchisees are experienced operators with proven track records.

“These new partnerships with Op Burgers, Kuber, and Evergreen Dining will provide Red Robin with the financial flexibility needed to reduce debt, support our refinancing objectives and accelerate investment system-wide,” he said. “I look forward to what we will accomplish together for the benefit of our guests, team members and investors.”

The deals are expected to close in the second half of the year, and Red Robin will adjust its 2026 financial guidance after that.