#United States #Red Robin #Englewood #First Choice Plan #Evergreen Dining

Red Robin Takes a Bold Step Towards Growth with Refranchising

In a significant move aimed at fortifying its financial position, Red Robin Gourmet Burgers, Inc. (NASDAQ: RRGB) has announced a refranchising agreement that will see the sale of 30 locations to Evergreen Dining LLC, an established multi-unit restaurant operator. This transaction underscores Red Robin's commitment to its ambitious, strategic initiative known as the First Choice Plan.

Established in 1969, Red Robin has been a staple in the casual dining sector, renowned for its diverse menu that features gourmet burgers and a vibrant dining experience. The recent refranchising effort involves units located predominantly in Washington and Western Idaho, and these establishments will continue to operate under the beloved Red Robin brand.

As part of the agreement, Red Robin will receive $23.5 million in cash, which is intended to significantly reduce outstanding debt while aiding the implementation of priorities outlined in their First Choice Plan. Dave Pace, the company's President and CEO, expressed confidence that Evergreen Dining would prove to be an exceptional partner for accelerating growth and enhancing financial stability. "Finding franchise partners that align with our values is crucial," said Pace.

Having managed over 100 restaurants across multiple national brands for nearly three decades, the principals at Evergreen Dining bring a wealth of experience to the table. With a support team of more than 1,200 employees, Evergreen Dining is well-equipped to maintain operational excellence at the newly acquired Red Robin locations. Such operational depth will prove beneficial from day one, ensuring a seamless transition for current guests and staff.

"Red Robin has been a significant part of the dining landscape in the Pacific Northwest since its inception, and we aim to solidify its position as the First Choice for customers in these communities," stated Evergreen Dining representatives. The transaction is expected to finalize in the latter half of 2026, pending customary closing conditions.

Following the successful completion of this refranchising, Red Robin intends to reassess its guidance. This strategic shift aims not only to enhance operational efficiency but also to bolster overall corporate financial health, allowing the company to evaluate potential refinancing avenues.

The excitement surrounding this partnership serves as a testament to the hard work and dedication of the Red Robin team. By successfully executing the First Choice Plan, they have laid a foundation for sustained growth and increased competitiveness in an ever-evolving market.

In addition to its commitment to operational excellence, Red Robin has always believed in creating memorable dining experiences that bring people together. With online ordering options available for to-go, delivery, and catering, Red Robin is easily accessible for its loyal fans across nearly 500 locations in the U.S. and Canada.

Finally, those interested in exploring additional franchising opportunities with Red Robin are encouraged to reach out to the company's advisors, Brookwood Associates. This refranchising agreement marks a bright new chapter in Red Robin’s story, ensuring that the rich tradition of good food, community connection, and exceptional service continues for years to come.

For more real-time updates on Red Robin's progress and initiatives, visit the official website at www.redrobin.com. Red Robin… YUMMM!

About Evergreen Dining LLC

Evergreen Dining LLC is dedicated to acquiring and operating Red Robin restaurants, leveraging decades of multi-unit operational experience to enhance brand presence and performance.

Forward-Looking Statements

This press release contains forward-looking statements regarding the transaction, including anticipated timing and completion. Such statements are made under the safe harbor provisions of the Private Securities Litigation Reform Act of 1995 and are subject to risks and uncertainties.

For a comprehensive understanding of these risks, stakeholders are encouraged to reference filings with the U.S. Securities and Exchange Commission.