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Red Robin Sells 86 Restaurants to Franchisees for $72.5 Million

The sale is meant to free cash to cut debt, to support refinancing, to fund system investments.

Overview

  • Red Robin announced the definitive sale of 86 company-owned restaurants on June 17, 2026 as part of its First Choice turnaround plan.
  • The deals split between Op Burgers LLC, which will buy 69 units for $62.5 million across eight states, and Kuber entities, which will buy 17 units in Oregon and Washington for $10 million.
  • The restaurants will keep the Red Robin name while new franchise partners take over day-to-day operations and the transactions are expected to close in the second half of 2026.
  • These sales add to a prior 30-unit deal with Evergreen Dining and bring total expected proceeds to about $96 million, funds the company says it will use mainly to pay down debt and support refinancing.
  • The moves follow more than 50 closures over three years and push Red Robin toward its targeted smaller, optimized footprint of about 440 restaurants with a larger share run by franchise operators, shifting operational risk to local owners while aiming to preserve jobs and customer access.