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Red Robin secures $115 million credit facility following restaurant refranchising. October 5, 2026 Red Robin Gourmet Burgers has completed a $115 million refinancing of its secured credit facility, extending its debt maturity to 2031 as the restaurant chain moves into the next stage of its First Choice Plan following a major refranchising initiative. The new facility, completed Oct. 2, replaces Red Robin's previous credit agreement and consists of a $90 million term loan and a $25 million revolving credit line. The five-year facility matures Oct. 2, 2031, and includes an option to increase borrowing capacity by as much as $20 million, subject to lender participation. The refinancing follows Red Robin's sale of the substantial majority of 116 company-owned restaurants included in three refranchising transactions, a strategy designed to generate cash and strengthen the company's balance sheet. Red Robin completed the majority of those transactions with Op Burgers LLC, Kuber Oregon LLC, Kuber Washington LLC and Evergreen Dining LLC in September. The completed sales covered 108 restaurants and generated approximately $89.4 million in gross proceeds. Eight additional restaurants covered by the Op Burgers agreement are expected to be sold by the end of Red Robin's 2026 fiscal year for approximately $6.6 million. If completed, the overall refranchising program would generate approximately $96 million in gross proceeds from the sale of 116 restaurants. The combination of those proceeds and improved operating performance helped position Red Robin to complete the refinancing. "Completing our refinancing is an important step forward for Red Robin and a key priority of our First Choice Plan," President and CEO Dave Pace said. "When we set out to strengthen our balance sheet, we knew it would be a multi-step process. Refranchising was the first in order to position us to refinance our debt." Red Robin will use proceeds from the new facility to repay all outstanding borrowings under its previous credit agreement and cover transaction-related fees and expenses. The facility can also support working capital and general corporate purposes, including capital expenditures and permitted acquisitions. Borrowings under both the term loan and revolving credit line will carry interest based on the Secured Overnight Financing Rate, or SOFR, plus 275 to 350 basis points depending on Red Robin's leverage ratio. The facility has no SOFR floor, with the initial rate set at SOFR plus 325 basis points. The refinancing represents another step in Red Robin's broader effort to reshape its capital structure and operating model. Refranchising reduces the number of restaurants requiring direct corporate capital while generating proceeds that can be directed toward debt reduction and other strategic priorities. At the same time, the company retains participation in those markets through franchise relationships rather than direct restaurant ownership. For Red Robin, the combination of asset sales and longer-term financing creates additional flexibility to direct capital toward the remaining company-operated restaurant portfolio and other elements of its First Choice Plan. "With this new facility in place, we have a stronger financial foundation from which to execute the other elements of the First Choice Plan, along with a longer runway and greater financial flexibility to invest in our restaurants, enhance guest experience and support our franchise partners," Pace said. The refranchising transactions are particularly significant relative to Red Robin's overall footprint. The company operates across nearly 500 locations in the United States and Canada, including franchised restaurants. Moving 116 locations from company ownership to franchise operators represents a meaningful shift in the composition of that network. The strategy can also change the company's capital requirements. A larger franchised base places more of the responsibility for restaurant-level investment and operations with franchise partners, potentially allowing Red Robin to focus corporate resources on brand development, systemwide initiatives and its remaining company-operated restaurants. The new revolving credit capacity provides another source of liquidity as the company executes that strategy, while the October 2031 maturity extends the timeline before the facility must be refinanced. JPMorgan Chase Bank served as administrative agent and collateral agent for the transaction, with Texas Capital Bank acting as documentation agent. JPMorgan Chase and U.S. Bank National Association served as joint lead arrangers and joint bookrunners. With the bulk of its refranchising transactions completed and the new $115 million facility in place, Red Robin has addressed two interconnected elements of its financial restructuring. The next phase will center on using the resulting balance-sheet flexibility to invest in restaurant performance, the guest experience and its franchise system as management continues executing the First Choice Plan.

Red Robin Gourmet Burgers completed refinancing of its secured credit facility on 2 October 2026. The new $115 million facility comprises a $25 million revolving line of credit and a $90 million term loan, maturing in October 2031. The refinancing follows Red Robin's sale of 108 company-owned restaurants to three franchisees for approximately $89.4 million in gross proceeds. An additional eight restaurants are expected to be sold by year-end for $6.6 million, bringing total proceeds to approximately $96 million from 116 restaurants. The move is part of Red Robin's First Choice Plan to strengthen its balance sheet. Chief executive Dave Pace said the new facility provides "a stronger financial foundation" and "greater financial flexibility" to invest in restaurants and support franchise partners. JPMorgan Chase Bank served as administrative agent and collateral agent for the facility.