Red Robin Sheds 86 Locations in $72.5 Million Refranchising Deal

Red Robin Gourmet Burgers is offloading 86 company-owned restaurants to two multi-unit operators for $72.5 million. The move is part of the casual dining chain's broader "First Choice Plan," an aggressive push to reduce debt and stabilize its financial footing through tactical refranchising across the United States.

Yesterday, 23:13· Corp and Tech· 1,122 reads

Red Robin Sheds 86 Locations in $72.5 Million Refranchising Deal

The company has entered into agreements with Op Burgers, LLC, which will acquire 69 units across eight states including Kentucky, Indiana, and Ohio for $62.5 million. Simultaneously, Kuber Oregon and Kuber Washington will take over 17 locations in the Pacific Northwest for $10 million. These sales follow a late-May deal involving 30 other locations, bringing the total value of recent divestitures to approximately $96 million.

CEO Dave Pace stated that these partnerships provide the necessary financial flexibility to accelerate system-wide investment. The proceeds are earmarked specifically for paying down outstanding debt and meeting refinancing targets. While the transitions are expected to close in the second half of 2026, the restaurants will continue to operate under the Red Robin brand. The company plans to update its financial guidance once these transactions are finalized.

Red Robin Sheds 86 Locations in $72.5 Million Refranchising Deal

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