Red Robin refranchises 108 company-owned restaurants
The sale of 108 company-owned restaurants generated approximately $89.4 million in proceeds, which Red Robin says were used to reduce outstanding debt.
Sentiment and the balance of points
Rhea-AI Sentiment reads the wording of the document, how positive or negative its language is on a 1 to 5 scale. The balance of points shown with the takes weighs what the document actually discloses, so the two can disagree, for example when a trial that missed its main goal is described in upbeat language.
Form Type
8-K
Rhea-AI Filing Summary
Red Robin Gourmet Burgers, Inc. (RRGB) reported preliminary, unaudited third-quarter comparable restaurant revenue up 3.9% for the 12 weeks ended October 4, 2026, versus the prior year. Guest traffic declined 1.7%, while average guest check increased 5.6%. For the 40 weeks ended October 4, comparable restaurant revenue increased 1.5%.
Red Robin completed three refranchising transactions covering 108 company-owned restaurants and generating approximately $89.4 million in aggregate cash proceeds, subject to customary adjustments; the proceeds were used to reduce outstanding debt and support a refinancing completed October 2. The five-year credit agreement is $115 million, including a $25 million revolving line of credit and a $90 million term loan.
The company moved its fiscal third-quarter earnings release and call from November 4 to November 18, 2026, citing additional accounting and valuation work associated with the transactions. It said the delay is unrelated to significant changes in financial condition or results of operations, and expects to file its Form 10-Q within the five-calendar-day extension period.
1 point · 1 major0 major · 0 points
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.
Positive
- Major pointRefranchising generated approximately $89.4 million in proceeds used to reduce outstanding debt. 52% of market cap
Negative
- None.
Filing Explained
Red Robin completed its five-year
8-K Event Classification
2 items: 2.02, 9.01
2 items
Item 2.02
Results of Operations and Financial Condition
Financial
Disclosure of earnings results, typically an earnings press release or preliminary financials.
Item 9.01
Financial Statements and Exhibits
Exhibits
Financial statements, pro forma financial information, or exhibit attachments filed with this report.
Key Figures
Comparable restaurant revenue: 3.9% increase
Guest traffic: 1.7% decrease
Average guest check: 5.6% increase
+5 more
8 metrics
Comparable restaurant revenue
3.9% increase
12 weeks ended October 4, 2026, versus prior year
Guest traffic
1.7% decrease
12 weeks ended October 4, 2026, versus prior year
Average guest check
5.6% increase
12 weeks ended October 4, 2026, versus prior year
Refranchised restaurants
108 restaurants
Completed during the third quarter of fiscal 2026
Refranchising proceeds
Approximately $89.4 million
Aggregate cash proceeds, subject to customary adjustments
Credit agreement
$115 million
Five-year agreement completed October 2, 2026
Revolving line of credit
$25 million
Part of the five-year credit agreement
Term loan
$90 million
Part of the five-year credit agreement
Key Terms
comparable restaurant revenue, refranchising, SOFR, revolving line of credit, +1 more
5 terms
comparable restaurant revenue financial
"percentage change in comparable restaurant revenue"
Revenue from restaurants that were open for a comparable period in both the current and prior reporting periods, excluding sales from newly opened or recently closed locations so performance is measured on an apples‑to‑apples basis. Investors use this metric like checking the thermometer for the existing business: it shows whether individual restaurants are attracting more customers or spending per visit, separate from growth from opening new outlets, and helps judge underlying demand and operational health.
refranchising financial
"completed the refranchising of 108 Company-owned restaurants"
Refranchising is when a company sells or transfers its company-operated locations to independent franchisees who run the business and pay fees or royalties to the company. For investors this is important because it typically brings immediate cash from the sales, reduces the company’s day-to-day operating costs and capital spending, and shifts future profit from direct store sales to steadier fee income—while also reducing control and the potential upside from operating the business directly.
SOFR financial
"Interest on the term loan and revolving line of credit is based on SOFR"
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.
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.
leverage ratio financial
"depending on the Company's leverage ratio"
Leverage ratio measures how much a company relies on borrowed money compared with its own funds or assets, typically expressed as debt relative to equity or total assets. Like a homeowner with a mortgage, higher leverage can amplify returns when business is strong but also raises the chance of big losses or default if revenue falls, so investors use it to judge financial risk and resilience.
Earnings Snapshot
Comparable restaurant revenue: 3.9%
Third quarter of fiscal 2026 ended October 4, 2026
Comparable restaurant revenue
3.9%
Increase versus prior year
Guest traffic
(1.7)%
Decrease versus prior year
Average guest check
5.6%
Increase versus prior year
FAQ
AI-generated questions and answers. How Rhea-AI works. Not financial advice.
What were RRGB's Q3 comparable restaurant sales?
RRGB's preliminary, unaudited comparable restaurant revenue increased 3.9% for the 12 weeks ended October 4, 2026, versus the prior year. Guest traffic decreased 1.7%, while average guest check increased 5.6%.
How many restaurants did RRGB refranchise, and what proceeds did it receive?
Red Robin completed the refranchising of 108 company-owned restaurants through three transactions, generating approximately $89.4 million in aggregate cash proceeds, subject to customary adjustments.
What interest rate applies to Red Robin's new credit facility?
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.
AI-generated analysis. How Rhea-AI works. Not financial advice.
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 OR 15(d) of The Securities Exchange Act of 1934
Date of Report (Date of earliest event reported): November 2, 2026
(Exact name of registrant as specified in its charter)
(State or other jurisdiction of incorporation) | (Commission File Number) | (IRS Employer Identification No.) | ||||||
(Address of principal executive offices) (Zip Code)
Registrant’s telephone number, including area code: (303) 846-6000
Not Applicable
(Former name or former address, if changed since last report.)
___________________________________________________________________________
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) | |||||
Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) | |||||
Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) | |||||
Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) | |||||
Securities registered pursuant to Section 12(b) of the Exchange Act:
| Title of each class | Trading symbol(s) | Name of each exchange on which registered | |||||||||||||||
| (Global Select Market) | |||||||||||||||||
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
Emerging growth company ☐
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐
ITEM 2.02 Results of Operations and Financial Condition
On November 2, 2026, Red Robin Gourmet Burgers, Inc. (the "Company") issued a press release describing selected financial results for the fiscal third quarter ended October 4, 2026. A copy of this press release is attached hereto as Exhibit 99.1 and is incorporated herein by reference.
The information in this Item 2.02, including the information set forth in Exhibit 99.1 shall not be deemed "filed" for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the "Exchange Act"), or otherwise subject to the liabilities of that section, nor shall it be deemed incorporated by reference in any filing under the Securities Act of 1933, as amended, or the Exchange Act, regardless of any general incorporation language in such filing, except as shall be expressly set forth by specific reference in such filing.
ITEM 9.01 Financial Statements and Exhibits
(d) Exhibits
Exhibit No. | Description | ||||
99.1 | Red Robin Gourmet Burgers, Inc. Press Release dated November 2, 2026 | ||||
104 | Cover Page Interactive Data File (embedded within the Inline XBRL document) | ||||
1
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
RED ROBIN GOURMET BURGERS, INC.
Date: November 2, 2026
| By: | /s/ Mark Graff | ||||
| Name: | Mark Graff | ||||
| Title: | Principal Financial Officer | ||||
2
 | ||||||||
Exhibit 99.1
RED ROBIN ANNOUNCES PRELIMINARY THIRD QUARTER COMPARABLE RESTAURANT REVENUE; RESCHEDULES EARNINGS CALL TO NOVEMBER 18, 2026
Englewood, CO – November 2, 2026 – 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 preliminary, unaudited comparable restaurant revenue results for the fiscal third quarter ended October 4, 2026.
Earnings Release and Conference Call Rescheduled to November 18th
During the third quarter of fiscal 2026, the Company completed significant refranchising transactions and refinanced its existing debt, representing important milestones in the execution of its strategic plan. Given the complexity of the accounting and valuation analyses associated with these transactions, the Company requires additional time to complete its financial statements and related disclosures.
The Company will reschedule its fiscal third quarter earnings release and conference call to Wednesday, November 18, 2026, which was previously scheduled for November 4, 2026.
The Company noted that the delay is unrelated to any significant changes in its financial condition or results of operations. The rescheduled earnings release and conference call will allow the Company to provide investors with a more comprehensive update on its financial results, the successful execution of these strategic initiatives, continued operational progress during the quarter, and updated guidance outlook under a more franchised ownership model.
The Company announced that it will file a Notification of Late Filing on Form NT 10-Q (the "Form NT 10-Q") with the U.S. Securities and Exchange Commission (the "SEC") under Rule 12b-25 of the Securities Exchange Act of 1934, as amended, to extend the filing deadline for its Quarterly Report on Form 10-Q for the quarter ended October 4, 2026 (the "Form 10-Q"). The Company expects to file the Form 10-Q within the five-calendar-day extension period permitted under Rule 12b-25.
Preliminary and Unaudited Comparable Restaurant Revenue
The following table presents the percentage change in comparable restaurant revenue in the third quarter of fiscal 2026:
| Increase (Decrease) Versus Prior Year | |||||||||||||||||||||||
| Sixteen Weeks Ended | Twelve Weeks Ended | Twelve Weeks Ended | Forty Weeks Ended | ||||||||||||||||||||
| April 19, 2026 | July 12, 2026 | October 4, 2026 | October 4, 2026 | ||||||||||||||||||||
| Guest traffic | (2.0) | % | (0.4) | % | (1.7) | % | (1.1) | % | |||||||||||||||
| Average guest check | 1.4 | % | 1.7 | % | 5.6 | % | 2.6 | % | |||||||||||||||
| Total change in comparable restaurant revenue | (0.6) | % | 1.3 | % | 3.9 | % | 1.5 | % | |||||||||||||||
Chief Executive Officer Comments
"Since launching our First Choice Plan in July 2025, we have remained focused on meaningfully strengthening our operating performance and financial position," said Dave Pace, Red Robin's President and Chief Executive Officer. "During the third quarter, we completed three refranchising agreements that generated significant proceeds. These proceeds were used to reduce outstanding debt and support the successful refinancing of our debt on attractive commercial terms. These transactions represent an important milestone for the Company and provide greater financial stability as we continue to execute our First Choice initiatives and advance our long-term strategic priorities."
Mr. Pace continued, "in addition, I am encouraged by the continued momentum in the third quarter, as same-store sales outperformed the industry. The 3.9% increase in same store sales benefited from the success of our Big Yummm value platform, which launched in July 2025. That platform provides an accessible entry point for guests while preserving the full Red Robin experience that guests have come to expect. This performance reinforces our confidence in the First Choice strategy and we remain focused on increasing frequency and engagement by delivering exceptional hospitality and a seamless guest experience. With a stronger financial foundation and improving operating trends, we believe Red Robin is well positioned to execute on its long-term priorities."
Significant Q3 Transactions
During the third quarter, the Company completed the refranchising of 108 Company-owned restaurants through three separate transactions with experienced franchise operators, generating approximately $89.4 million in aggregate cash proceeds, subject to customary adjustments. The transactions included 30 restaurants sold to Evergreen Dining LLC, 61 restaurants sold to Op Burgers, LLC, and 17 restaurants sold to Kuber Oregon, LLC and Kuber Washington, LLC.
In addition, the Company completed the refinancing of its secured credit facility on October 2, 2026. The five-year $115 million credit agreement provides for a $25 million revolving line of credit and a $90 million term loan. 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.
These transactions represent a significant milestone in the execution of the Company's First Choice plan, supporting debt reduction, strengthening the balance sheet and expanding the Company's franchise-operated restaurant base.
Investor Conference Call and Webcast
Red Robin will host an investor conference call to discuss its third quarter of 2026 results, and outlook for fiscal 2026 on November 18th, 2026 at 4:30 p.m. ET. The conference call can be accessed live over the phone by dialing 201-689-8560 which will be answered by an operator or by clicking Call Me. The conference call should be accessed at least 10 minutes prior to its scheduled start.
A replay will be available from approximately two hours after the end of the conference call and can be accessed by dialing 412-317-6671; the conference ID is 13762724. The replay will be available through Tuesday, December 1, 2026.
The call will be webcast live and later archived from the Company’s Investor Relations website.
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 Company's preliminary results for the third quarter of 2026; the anticipated timing of the Company's earnings release, conference call, and related filings; the Company's strategic initiatives, including 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 completion of normal quarter-end accounting procedures and adjustments with respect to our preliminary results for the third quarter of 2026; the effectiveness of the Company's strategic initiatives; the possibility that the Company may not fully realize the projected benefits of the refranchising and refinancing transactions; 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.
For media relations questions contact:
Hannah Atteberry, Red Robin Gourmet Burgers, Inc.
media@redrobin.com
(361) 249-4507
For investor relations questions contact:
investor@redrobin.com