Red Robin Gourmet Burgers Inc. (NASDAQ: RRGB) announced the sale of 30 restaurant units to Evergreen Dining LLC for $23.5 million in cash. The locations are situated in Washington and western Idaho.

The company plans to use the proceeds primarily to pay down outstanding debt and continue executing its "First Choice Plan" priorities. The transaction is expected to close in the second half of 2026, subject to customary closing conditions.

Evergreen Dining LLC's principals have operated more than 100 restaurants across multiple national brands over nearly three decades. The company employs more than 1,200 people across its operating entities and maintains a support center that provides accounting, human resources, information technology, marketing, payroll, purchasing, and real estate services.

"Since launching our First Choice Plan last year, we have been focused on finding franchise partners who share our values and commitment to delighting guests," said Dave Pace, Red Robin's president and chief executive officer. "We are confident Evergreen Dining is the right partner to accelerate growth at these locations while also helping us strengthen our balance sheet, improve our capital structure, and enhance our financial flexibility."

The restaurants will continue operating under the Red Robin brand. Red Robin expects to update its financial guidance following the transaction's completion and will file additional details in a Form 8-K with the Securities and Exchange Commission.

Red Robin operates nearly 500 locations in the United States and Canada, including franchised restaurants. The company was founded in 1969 and is based in Englewood, Colorado.