Red Robin Gourmet Burgers has agreed to sell 30 locations for $23.5 million as part of a refranchising effort.
The restaurants in Washington and Western Idaho will go to Washington-based Evergreen Dining LLC. Evergreen’s principals are restaurant operators with more than 30 years of experience across multiple brands.
Red Robin plans to use the proceeds to pay down debt.
“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,” Red Robin CEO David Pace said in a statement.
The deal is expected to close in the second half of the year.
The 500-unit Red Robin is in the midst of a turnaround plan that includes efforts to grow traffic, repair its restaurants and “find money,” in part through selling some corporate locations to franchisees.
In the press release announcing the Evergreen deal, the company noted that it is looking for more potential buyers. As of April 19, Red Robin had more than $171 million in long-term debt.
The chain is coming off a solid quarter that included its best traffic in three years, which executives said was a sign that its strategy is taking hold.
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