Red Robin Sells 86 Restaurants to Franchisees

Red Robin is divesting 86 additional restaurant locations to franchisees for $72.5 million across two distinct transactions. This strategic move is part of the company's First Choice turnaround plan, focused on significant debt reduction. Op Burgers will acquire 69 units in several East Coast states, while Kuber Oregon and Kuber Washington will purchase 17 units in the Pacific Northwest.

These sales are expected to generate a total of $96 million through refranchising, which will be used to pay down and refinance Red Robin's substantial long-term debt, exceeding $171 million as of April 19. The 116 units changing hands represent nearly a quarter of the chain's approximate 475 locations. Following these deals, over 200 Red Robin restaurants, or about 43% of the system, will be franchised.

CEO Dave Pace expressed confidence in the new franchisees, citing their experience and proven success. He emphasized that these partnerships are vital for providing Red Robin the necessary financial flexibility to reduce debt, achieve refinancing objectives, and spur system-wide investment. The transactions are anticipated to conclude in the latter half of the year, after which Red Robin will update its 2026 financial guidance.