Red Robin Gourmet Burgers, Inc. Completes Refinancing to Strengthen Financial Foundation and Support First Choice Plan

The new facility matures in 2031 and allows up to $20 million of additional capacity, subject to lender participation.

Rhea-AI Summary

Red Robin Gourmet Burgers (NASDAQ: RRGB) completed refinancing its secured credit facility on October 2, 2026, replacing its prior credit agreement.

The $115 million facility comprises a $25 million revolving credit line and a $90 million term loan, maturing October 2, 2031. Interest starts at SOFR plus 325 basis points; the margin ranges from 275 to 350 basis points based on leverage, with no SOFR floor. SOFR is a benchmark interest rate. Funds will repay prior borrowings and cover related fees and expenses. An additional $20 million is available subject to lender participation.

Completed refranchising sales covered 108 restaurants for approximately $89.4 million in gross proceeds. Red Robin expects eight more restaurant sales to close by fiscal year-end 2026 for approximately $6.6 million.

4 points · 2 major

MixediHow this balance works

How this balance works

Rhea-AI gives every point it takes from this document a weight. Minor counts 1, Moderate 3 and Major 9, so one Major point outweighs several Minor ones. The bar adds up the weights on each side, and when neither side holds more than 65% of the total the balance reads Mixed.

It reads the document as published, with the same rules for every company, and it does not look at what the market expected or at how the stock traded, so a point can be objectively good on a day the stock falls.

Rhea-AI Sentiment measures something else, the tone of the wording.

How the balance worksHow Sentiment works

1 major · 4 points

Hollow bars mark forward-looking points. How the balance works

Positive

• Major pointNew financing provides a $25 million revolving credit line and a $90 million term loan.
• Major pointCompleted sales of 108 company-owned restaurants generated approximately $89.4 million in gross proceeds. 59% of market cap
• Moderate point. Forward-looking: it has not happened yet and may not happen.Red Robin expects eight additional restaurant sales to generate approximately $6.6 million in gross proceeds. 4.4% of market cap
• Minor point. Forward-looking: it has not happened yet and may not happen.Facility expansion permits up to an additional $20 million, subject to lender participation.

Negative

• Major pointThe $90 million term loan carries a five-year repayment obligation, maturing October 2, 2031. 60% of market cap
• Minor pointInterest starts at SOFR plus 325 basis points; margins range from 275–350 basis points based on leverage.
• Minor pointRefinancing funds must cover related fees and expenses as well as repay prior borrowings.
• Minor point. Forward-looking: it has not happened yet and may not happen.The remaining eight restaurant sales under the Op Burgers agreement are pending, with closing expected by fiscal year-end 2026.

News Explained

The facility's stated uses extend beyond refinancing prior borrowings and paying fees: funds may also support working capital and general corporate needs, including capital expenditures and permitted acquisitions.

Key Figures

Credit facility size: $115 million Facility term: Five years Potential facility increase: Up to $20 million +2 more

Credit facility size

$115 million

$25 million revolving line of credit and $90 million term loan

Facility term

Five years

Matures October 2, 2031

Potential facility increase

Up to $20 million

Subject to lender participation

Interest spread

SOFR plus 275 to 350 basis points

Depends on the Company's leverage ratio; no SOFR floor

Initial interest rate

SOFR plus 325 basis points

Initial rate on the new Credit Facility

Historical Context

1 past event · Latest: Sep 01

1 event

1. Sep 01

   Refranchising sale

   24h Move

   +0.0%

   108 restaurants sold for $89.4 million in gross proceeds ahead of the refinancing.

24h Move is the share-price change in the day after each event; other market factors may also have contributed.

Key Terms

sofr, basis points, term loan, revolving line of credit

4 terms

sofr financial

"based on SOFR plus 275 to 350 basis points"

The Secured Overnight Financing Rate (SOFR) is a market benchmark that measures the cost of borrowing cash overnight using U.S. Treasury securities as collateral. Investors watch SOFR because it acts like a speedometer for short-term interest costs—affecting loan rates, bond yields and the pricing of interest-rate contracts—so movements change borrowing expenses, cash returns and the value of interest-sensitive investments.

basis points financial

"SOFR plus 275 to 350 basis points"

Basis points are a way to measure small changes in interest rates or percentages, where one basis point equals 0.01%. For example, if a loan's interest rate increases by 50 basis points, it's gone up by 0.50%. They help people understand tiny differences in rates that can add up over time, making financial comparisons clearer.

term loan financial

"a $90 million term loan"

A term loan is a type of loan that is borrowed for a set period of time, with a fixed schedule for repaying the money, usually in regular payments. It matters to investors because it represents a company's borrowing costs and financial stability; reliable repayment of these loans can indicate strong financial health, while difficulties may signal potential risks.

revolving line of credit financial

"a $25 million revolving line of credit"

A revolving line of credit is a flexible borrowing arrangement that allows a person or business to access funds up to a set limit whenever needed, much like a prepaid card. As money is repaid, it becomes available to borrow again, making it a convenient way to manage cash flow or cover ongoing expenses. Investors pay attention to it because it reflects a company’s ability to access quick funds and manage financial flexibility.

AI-generated analysis. How Rhea-AI works. Not financial advice.

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ENGLEWOOD, Colo., Oct. 5, 2026 /PRNewswire/ -- Red Robin Gourmet Burgers, Inc. (NASDAQ: RRGB) ("Red Robin" or the "Company"), a casual dining restaurant chain serving an innovative selection of high-quality gourmet burgers in a family-friendly atmosphere, today announced it completed the refinancing of its secured credit facility (the "Credit Facility") on October 2, 2026. The new facility replaces the Company's prior credit agreement and follows the substantial completion of its refranchising transactions, the first step in strengthening the balance sheet under the First Choice Plan.

As announced on September 1, 2026, Red Robin completed the substantial majority of the closings under its three refranchising transactions with Op Burgers, LLC, Kuber Oregon, LLC and Kuber Washington, LLC, and Evergreen Dining LLC. Together, these transactions involved the sale of 108 company-owned restaurants for approximately $89.4 million in gross proceeds. The sale of eight more restaurants under the Op Burgers agreement is expected to close by the end of the Company's 2026 fiscal year for approximately $6.6 million, bringing total gross proceeds to approximately $96 million from the sale of 116 restaurants. These proceeds, along with the Company's improved operating performance, put Red Robin in a stronger position to refinance. 

The new Credit Facility consists of the following:

• Size: $115 million, made up of a $25 million revolving line of credit and a $90 million term loan.
• Term: Five years, maturing October 2, 2031.
• Room to grow: The Company may increase the facility by up to an additional $20 million in the future, subject to lender participation.
• Use of funds: Repay all borrowings under the prior credit agreement, pay related fees and expenses, and support working capital and general corporate needs, including capital expenditures and permitted acquisitions.
• Pricing: Interest on the term loan and revolving line of credit is based on SOFR plus 275 to 350 basis points, depending on the Company's leverage ratio, with no SOFR floor. The initial rate is SOFR plus 325 basis points.

"Completing our refinancing is an important step forward for Red Robin and a key priority of our First Choice Plan," said Dave Pace, President and Chief Executive Officer of Red Robin. "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. 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. I want to thank our Team Members, franchise partners, lenders and advisors for their commitment and support throughout this process."

The Credit Facility was led by JPMorgan Chase Bank, N.A. as Administrative Agent and Collateral Agent, and Texas Capital Bank as Documentation Agent. JPMorgan Chase Bank, N.A. and U.S. Bank National Association served as Joint Lead Arrangers and Joint Bookrunners.

About Red Robin Gourmet Burgers, Inc. (NASDAQ: RRGB)
Red Robin Gourmet Burgers, Inc. (www.redrobin.com), is a casual dining restaurant chain founded in 1969 that operates through its wholly owned subsidiary, Red Robin International, Inc., and under the trade name, Red Robin Gourmet Burgers and Brews. We believe nothing brings people together like burgers and fun around our table, and no one makes moments of connection over craveable food more memorable than Red Robin. We serve a variety of burgers and mainstream favorites to Guests of all ages in a casual, playful atmosphere. In addition to our many burger offerings, Red Robin serves a wide array of salads, appetizers, entrees, desserts, signature beverages and Donatos Pizza at select locations. It's easy to enjoy Red Robin anywhere with online ordering available for to-go, delivery and catering. Sign up for the royal treatment by joining Red Robin Royalty^® today and enjoy Bottomless perks and delicious rewards across nearly 500 Red Robin locations in the United States and Canada, including those operating under franchise agreements. Red Robin… YUMMM^®!

Forward-Looking Statements
Forward-looking statements in this press release, including statements regarding the refranchising transactions and the anticipated timing and completion of the remaining restaurants expected to close; the Company's intended use of proceeds; the Company's strategy under the First Choice Plan; and all other statements that are not historical facts are made under the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. These statements are based on assumptions believed by the Company to be reasonable and speak only as of the date on which such statements are made. Without limiting the generality of the foregoing, words such as "expect," "believe," "anticipate," "intend," "plan," "project," "could," "should," "will," "outlook," or "estimate," or the negative or other variations thereof or comparable terminology are intended to identify forward-looking statements. Except as required by law, the Company undertakes no obligation to update such statements to reflect events or circumstances arising after such date and cautions investors not to place undue reliance on any such forward-looking statements. Forward-looking statements are subject to various risks and uncertainties that could cause actual results to differ materially from those described in the statements, including but not limited to the following: the possibility that the conditions to the remaining restaurants expected to close are not satisfied on a timely basis or at all; the possibility that the Company may not fully realize the projected benefits of the transactions, including the anticipated amount and use of proceeds; business disruption during the pendency of or following the transactions; the impact of the transactions on the Company's relationships with employees, franchisees, suppliers, landlords, and other third parties; the adequacy of cash flows and the cost and availability of capital or credit facility borrowings; the ability to service debt and comply with credit facility covenants; costs associated with lease obligations, including potential contingent lease liability; changes in consumer behavior or preference; geographic concentration in the Western United States; and actions taken by franchisees that could harm the Company's business or reputation. These factors should not be construed as exhaustive and should be read in conjunction with other cautionary statements and risk factors described from time to time in the Company's Form 10-K, Form 10-Q, and Form 8-K reports (including all amendments to those reports) filed with the U.S. Securities and Exchange Commission.

View original content:https://www.prnewswire.com/news-releases/red-robin-gourmet-burgers-inc-completes-refinancing-to-strengthen-financial-foundation-and-support-first-choice-plan-302897830.html

SOURCE Red Robin Gourmet Burgers, Inc.

FAQ

AI-generated questions and answers. How Rhea-AI works. Not financial advice.

What are the size and maturity of Red Robin's new credit facility?

Red Robin's new credit facility totals $115 million and matures on October 2, 2031. It consists of a $25 million revolving credit line and a $90 million term loan, replacing the prior credit agreement.

What interest rate does Red Robin pay on its refinanced credit facility?

The initial interest rate is SOFR plus 325 basis points. Both the term loan and revolving credit line carry a margin of 275 to 350 basis points above SOFR, depending on the company's leverage ratio, with no SOFR floor.

What total proceeds does Red Robin expect from its refranchising transactions?

Red Robin expects total gross proceeds of approximately $96 million from selling 116 restaurants. Completed sales covered 108 restaurants for approximately $89.4 million; eight additional sales under the Op Burgers agreement are expected to close by the end of fiscal year 2026 for approximately $6.6 million.