Red Robin Gourmet Burgers announced that it has entered into a refranchising agreement to sell 30 restaurant locations in Washington and Western Idaho to Evergreen Dining LLC, an experienced multi-unit restaurant operator. The transaction is expected to generate $23.5 million in cash proceeds for the company and represents another step in Red Robin’s ongoing First Choice Plan, which is focused on strengthening operations and improving financial performance.
The restaurants involved in the transaction will continue operating under the Red Robin brand following the sale. Red Robin said it plans to use the proceeds primarily to reduce outstanding debt while continuing to invest in priorities outlined in its First Choice Plan.
Evergreen Dining’s leadership team brings nearly three decades of restaurant operating experience, having managed more than 100 restaurants across multiple national brands. The organization employs more than 1,200 people and maintains a support center that provides accounting, human resources, information technology, marketing, payroll, purchasing, and real estate services.
According to Red Robin, the partnership is designed to support growth at the transferred locations while enhancing the company’s financial flexibility and balance sheet strength. The company is also evaluating potential refinancing opportunities as part of its broader financial strategy.
The transaction is expected to close during the second half of 2026, subject to customary closing conditions. Red Robin said it expects to update its financial guidance after the deal closes. Additional details will be disclosed in a Form 8-K filing with the U.S. Securities and Exchange Commission.
KEY QUOTES:
“Since launching our First Choice Plan last year, we have been focused on finding franchise partners who share our values and commitment to delighting guests. We are confident Evergreen Dining is the right partner to accelerate growth at these locations while also helping us strengthen our balance sheet, improve our capital structure, and enhance our financial flexibility as we evaluate potential refinancing partners. This exciting next chapter with Evergreen Dining would not have been possible without our talented team members who have worked tirelessly to execute on our First Choice Plan and help us strengthen our competitive position.”
Dave Pace, President and Chief Executive Officer, Red Robin Gourmet Burgers
“Red Robin has been bringing Washingtonians and Idahoans together for moments of connection since 1969. We look forward to partnering with the talented teams in each location to solidify Red Robin’s position as the First Choice in these communities, while still offering the same juicy burgers, bottomless fries and exceptional hospitality guests have enjoyed for almost six decades.”
Evergreen Dining
