Several Red Robin stores will soon be under new ownership as part of a $23.5 million deal.
Washington – National burger chain red robin announced that it will sell its 30 company-operated restaurants in the Pacific Northwest and convert them into franchised locations.
The sale to Evergreen Dining LLC was valued at $23.5 million.
Red Robin said in a press release Proceeds from the sale will be used primarily to repay debt while focusing on Preferred Plan priorities.
The acquired restaurants are located in Washington and western Idaho and will continue to operate under the same Red Robin brand, the companies said. The companies did not disclose which specific locations were part of the sale.
They expect the deal to close later this year.
Red Robin previously said it planned to close 20 restaurants this year. According to the Denver Business Journal.
As of April, Red Robin had 379 company-operated restaurants in 39 states and 90 franchised restaurants in 13 states. According to documents filed with the U.S. Securities and Exchange Commission.
Red Robin’s “go-to plan” is Launching in July 2025 One of its stated goals is to manage expenses and assets to reduce debt and allow for investment, including through refranchising “select company-owned restaurants and markets.”
During the May earnings call, Red Robin President and CEO David Pace said the company is in “the final stages of discussions” with multiple parties about converting some existing locations into franchises.
“We believe Evergreen Restaurants is the right partner to accelerate growth at these locations while helping us strengthen our balance sheet, improve our capital structure and enhance our financial flexibility as we evaluate potential refinancing partners.” Pace said in a news release Thursday.
