Red Robin Gourmet Burgers (NASDAQ: RRGB) has sold 30 company-owned restaurants in Washington State and Western Idaho to Evergreen Dining LLC for $23.5 million in cash. The transaction, announced May 28, 2026, is part of the franchise brand’s “First Choice Plan” — a strategic initiative aimed at reducing debt and shifting toward an asset-light franchise model across its nearly 500 US and Canadian locations.
Founded in 1969 and headquartered in Englewood, Colorado, Red Robin has operated as a publicly traded casual dining chain for decades. Like many full-service restaurant brands, the company has been working through a period of post-pandemic restructuring, with refranchising identified as a path to strengthening its capital structure. The “First Choice Plan” was launched last year as the company’s framework for returning the brand to operational and financial stability.
30 Washington and Idaho Locations Change Hands for $23.5 Million
Under the terms of the agreement, Red Robin will receive $23.5 million in cash upon closing, which the company intends to apply primarily toward outstanding debt. The 30 restaurants, all located in Washington State and Western Idaho, will continue operating under the Red Robin brand. The transaction is expected to close in the second half of 2026, subject to customary conditions. Evergreen Dining LLC — the acquiring entity — is a Washington State limited liability company whose principals have collectively operated more than 100 restaurants across multiple national brands over nearly three decades, supported by a team of more than 1,200 employees and a shared services center covering accounting, HR, IT, marketing, and real estate.
A Broader Shift Toward Asset-Light Franchising in Casual Dining
The casual dining segment has seen a wave of refranchising activity over the past several years, as publicly traded chains face pressure from shareholders to reduce capital exposure and focus on brand management rather than restaurant operations. Red Robin’s decision mirrors moves made by peers such as Applebee’s parent Dine Brands and Denny’s, both of which shifted heavily toward franchised models over the past decade. For Red Robin, the Western US portfolio represents a meaningful asset: the Pacific Northwest has been one of the brand’s stronger regional markets since its founding in Seattle in 1969.
What the Transaction Means for the Brand’s National Footprint
Following the close of the transaction, the 30 restaurants will operate as franchised locations, maintaining the same menus, branding, and guest experience. Red Robin’s advisors, Brookwood Associates, remain available to parties interested in other refranchising opportunities with the brand. The company indicated it expects to update financial guidance following the close of the deal. Interested parties wishing to explore additional franchising arrangements with Red Robin have been directed to contact Brookwood Associates through Red Robin’s official channels.
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