(WHTM) — Red Robin is evaluating dozens of “underperforming” restaurant locations that could potentially be closed.
In the company’s quarterly earnings report, executives for Red Robin, the chain known for burgers and bottomless fries, said they are “evaluating alternatives for approximately 70 underperforming restaurant locations, including closure upon expiration of the current lease term.”
In the fourth quarter of 2024, the chain closed one restaurant following a lease expiration. The company says it anticipates a transaction to sell three owned properties early this year.
Chi-Chi’s restaurants are coming back, but where will they be?
The transaction is expected to generate gross proceeds of $5.8 million to repay debt and for “general corporate purposes.”
In 2024, Red Robin reported $1.25 billion in revenue, down by $54.5 million compared to the previous fiscal year. The company also reported a net loss of $77.5 million last year.
“While financial results for 2024 fell well below our original expectations, we’ve made substantial improvements to the guest experience and believe we still have a significant opportunity ahead of us to reach the full potential of our iconic brand,” said G.J. Hart, president and CEO.
He added that the company is seeing “the benefit of our work,” leading to increased traffic, but still looking to bring guests back into restaurants.
Red Robin, which first opened in Seattle in 1969, currently has 498 restaurants across the United States and in British Columbia, Canada.
There are Red Robin restaurants in all but five states in the U.S.: North Dakota, Wyoming, Mississippi, West Virginia, Vermont, and Hawaii. More than 80% of Red Robin locations are company-owned, while the remaining are franchises.
