Red Robin considering closing around 70 underperforming locations to repay debt, CEO says

Red Robin announced that it is considering closing around 70 underperforming locations as the gourmet burger chain attempts to repay debt.

The chain's total revenues for 2024 are $1.25 billion, a decrease of $54.5 million when compared to 2023, according to a February earnings release. Red Robin's net loss was $77.5 million in 2024, compared to a net loss of $21.2 million in 2023, the company said.

Last year, Red Robin closed one location after its lease expired, but now the chain is "evaluating alternatives for approximately 70 underperforming restaurant locations, including closure upon expiration of the current lease term," according to the release.

G.J. Hart, Red Robin's president and CEO, said most of the underperforming locations are expected to close over the next five years as their leases expire. In 2025, the company expects to close 10 to 15 restaurants, he added.

"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," Hart said.

As Red Robin looks to bounce back, Hart said the company will focus on bringing guests back into its locations for "craveable food," bettering efficiency in its operations and growing profitability at the restaurant and corporate levels. Adding new menu items and promotions throughout 2025, including limited-time offers and new salad options, will be key in helping the company lure guests back, the CEO added.

"2025 is off to a good start with the comparable restaurant revenue momentum we had exiting the fourth quarter, continuing through the first eight weeks of the first quarter," Hart said. "With the strategy we have in place, we believe we are well positioned to deliver significant value to our guests and shareholders alike."

While Red Robin had some negative results in 2024, Hart said the burger chain's more than 300 company-owned locations continue to perform well, including making a gain in sales. Following the 2024 fiscal year (which ended Dec. 29, 2024), there were 498 Red Robin restaurants, and of those, 407 were company-owned and 91 were operated by franchisees, according to the company.

The anticipated closures will help strengthen Red Robin's portfolio and free up money that can be reinvested into the company, or used to repay debt, Hart said. The chain is also exploring other lanes to speed up this process, which the CEO said he and the company will provide updates on soon.