Red Robin Eyes Restaurant Closures

Red Robin Gourmet Burgers Inc. (Englewood, Colo.) said it could close up to 70 of its restaurants as it undertakes a chainwide evaluation of its eateries. The full-service chain, which operates about 500 locales in the U.S. and Canada, unveiled those plans in a news release detailing its financial results for year-end 2024.

The company noted that during its fourth quarter, it closed one restaurant upon expiration of the lease and “is evaluating alternatives for approximately 70 underperforming restaurant locations, including closure upon expiration of their current lease terms.”

Red Robin said it recognized asset impairments and net closure charges of $32.4 million during the fourth quarter of fiscal 2024, primarily associated with this review of underperforming restaurants.

Red Robin also said it anticipates completing the sale of three company-owned eateries during the first quarter of fiscal 2025. That deal is expected to generate gross proceeds of $5.8 million, which the company expects to use to repay debt and for general corporate purposes.

“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 President and CEO G.J. Hart.