Navigating Financial Challenges Through Refranchising

In response to a projected drop in same-store sales, Red Robin has embarked on a strategic refranchising initiative to bolster its balance sheet and alleviate financial burdens. By transferring ownership of certain locations to franchisees, the company aims to reduce its long-term debt and lease liabilities. This approach allows Red Robin to optimize its capital structure, potentially paving the way for future refinancing opportunities.