Overview
- The company has sold dozens of restaurants in bulk to franchisees, including 69 units to OP Burgers for $62.5 million, 17 units to Kuber entities for $10 million and 30 units to Evergreen Dining for $23.5 million.
- Red Robin is closing underperforming sites as leases expire and has already shuttered 24 locations since late 2024 while expecting roughly 20 more closures in 2026 and up to 27 additional closures in later years.
- The chain says the moves are part of its First Choice Plan to cut costs and debt rather than seek bankruptcy, and reported EBITDA rose about 53% to $69.7 million after repaying roughly $20.3 million in debt.
- Management removed about 20 restaurants from the original closure list after operational improvements, and the company operates roughly 475 U.S. and Canadian locations with about 81% company-owned stores remaining.
- Local effects will vary: some sold sites will keep the Red Robin brand under new operators, the Cary, North Carolina restaurant is slated to close after a $3.3 million sale, and available reporting shows no Arizona locations currently scheduled for closure.