Red Robin Gourmet Burgers has completed the sale of 108 company-owned restaurants for approximately $89.4 million in gross proceeds across three refranchising transactions, advancing the company’s First Choice Plan and debt refinancing strategy.
Another eight restaurants are expected to be sold by the end of Red Robin’s 2026 fiscal year for approximately $6.6 million, which would bring total proceeds from the three transactions to approximately $96 million from 116 restaurants.
Op Burgers is acquiring a total of 69 restaurants for $62.5 million across Kentucky, Indiana, Maryland, Ohio, North Carolina, Pennsylvania, South Carolina and Virginia.
The sale of 61 of those restaurants for $55.9 million has closed. The remaining eight locations are expected to close by fiscal year-end after applicable liquor licenses are transferred.
Kuber Oregon and Kuber Washington acquired 17 restaurants in Oregon and Washington for $10 million, while Evergreen Dining acquired 30 restaurants in Washington and Western Idaho for $23.5 million.
Red Robin intends to use net proceeds from the transactions to reduce outstanding debt and execute its refinancing priorities while continuing to reinvest in restaurants and technology.
The sold locations will remain Red Robin restaurants but will be operated by the new franchise owners.
Red Robin operates nearly 500 locations across the U.S. and Canada, including company-operated and franchised restaurants.
Op Burgers is a portfolio company of special situations investment firm Alexandrite Management.
Evergreen Dining’s principals have operated more than 100 restaurants across multiple national brands over nearly three decades, while Kuber is led by franchise operator Aman Sharma.
KEY QUOTES:
“Our talented team has made incredible progress in the execution of our First Choice Plan over the past year, and the completion of these refranchising agreements is a critical next step in strengthening our balance sheet as we position our business for sustainable, long-term growth. Each of these seasoned operators shares our hospitality-first mindset and brings the resources needed to accelerate growth across these markets, while continuing to deliver an exceptional guest experience. Importantly, these transactions will advance our efforts to refinance our existing debt and increase our financial flexibility. We are confident these operators will be strong partners who can help each location unlock its full potential for the benefit of our guests, team members and investors.”
Dave Pace, President and Chief Executive Officer of Red Robin
“We are excited to become Red Robin franchise owners and leverage insights from our experience as a multi-unit operator to support the Team Members who make these restaurants successful.”
Op Burgers statement
“Red Robin has developed a loyal following in the Pacific Northwest, and we look forward to partnering with the dedicated restaurant teams at each location to build on Red Robin’s success.”
Kuber statement
“We are ready to roll up our sleeves and help the Red Robin team solidify its position as the First Choice in communities across Washington and Idaho and continue growing the business for years to come.”
Evergreen Dining statement
