Red Robin is selling 86 of its company-owned restaurants to franchise operators in a $72.5 million deal as part of a plan to strengthen its finances.
The 57-year-old burger chain said the locations will stay open under the Red Robin name, but day-to-day operations will be handled by new franchise partners, according to a Monday news release.
Under the agreements, Op Burgers LLC will acquire 69 restaurants across Kentucky, Indiana, Maryland, Ohio, North Carolina, Pennsylvania, South Carolina and Virginia in a $62.5 million deal. Separately, Kuber Oregon LLC and Kuber Washington LLC will take over 17 locations in Oregon and Washington for $10 million.
The exact locations were not listed in the news release.
The move is part of a larger restructuring effort tied to Red Robin’s “First Choice” turnaround plan, which launched in July and focuses on reducing debt and shifting more restaurants into franchise ownership.
Red Robin previously agreed to sell 30 additional locations in Washington and Idaho to Evergreen Dining LLC, bringing total expected proceeds from all deals to about $96 million once completed. The sales announced this week are expected to close in the second half of 2026, Red Robin said.
The company says it plans to use the funds mainly to pay down debt and support its refinancing efforts.
"Strengthening our financial foundation remains a key priority for the Red Robin team and these transactions are a major step forward toward achieving our goal,” Dave Pace, Red Robin's President and Chief Executive Officer, said in a statement. “Our partnerships with Op Burgers and Kuber introduce experienced operators into the Red Robin system. These teams bring proven track records of delivering exceptional guest experiences and the demonstrated ability to grow into the future."
Pace continued, "These new partnerships with Op Burgers, Kuber, and Evergreen Dining will provide Red Robin with the financial flexibility needed to reduce debt, support our refinancing objectives and accelerate investment system-wide. I look forward to what we will accomplish together for the benefit of our guests, team members and investors."
Red Robin has closed more than 50 underperforming locations over the past three years, including 23 in 2025. The company aims to operate about 440 restaurants for optimal performance under the “First Choice” plan.
At the end of the first quarter of 2026, Red Robin had 469 locations, including 90 franchised. With the new deals, that shifts to about 206 franchised and 263 company-owned restaurants, moving the chain closer to its goal of about 65 percent company ownership.
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