Red Robin has locked in a $115 million credit facility, the casual-dining operator said Monday, refinancing a loan scheduled to come due in 2027 and giving CEO David Pace a longer runway to execute the chain's "First Choice Plan."

The five-year agreement consists of a $25 million revolving credit line and a $90 million term loan, with an accordion feature that could add another $20 million. The facility matures Oct. 2, 2031, and carries an initial interest rate of 3.25%. JPMorgan Chase Bank serves as administrative agent and collateral agent; Texas Capital Bank is the documentation agent.

What was the predecessor deal?

As of July, Red Robin carried $167.2 million of outstanding debt on its prior credit facility, which was scheduled to mature Sept. 3, 2027. Replacing that structure with a longer-dated instrument at a single-digit rate is a notable shift for a chain whose equity had traded far below its prior peaks for years.

How did the company pay it down?

Red Robin funded the deleveraging primarily through restaurant sales. The Greenwood Village, Colo.-based operator sold 108 company-owned units for approximately $89.4 million across three separate transactions. A fourth deal for eight additional restaurants is set to close shortly at $6.6 million.

That disposal program trims Red Robin's footprint below its 500-unit base and shifts more of the system into franchise hands. Pace has framed the "First Choice Plan" — unveiled in July 2025 — around three pillars: traffic-driving marketing, balance-sheet repair and what the company calls a "high-performance" operating culture.

Where does operating momentum stand?

The refi lands against the chain's strongest quarter in more than three years. Red Robin posted same-store sales growth of 1.3% last quarter on essentially flat traffic — modest by category standards, but a marked turn for a brand that has spent years trying to rebuild its pricing power and check average.

What does management say about the deal?

"With this new facility in place, we have a stronger financial foundation from which to execute the other elements of the First Choice Plan, along with a longer runway and greater financial flexibility to invest in our restaurants, enhance guest experience and support our franchise partners," Pace said in a statement.

How does this reset the equity story?

Red Robin shares traded up roughly 0.90% Monday morning at about $8 per share. The stock is up about 93% year to date, though it remains well below the roughly $22 high the shares touched within the past five years.

The refinancing gives Pace a debt maturity that runs three years beyond the prior deadline and lets the company put recently divested cash to work on the operating improvements at the heart of the First Choice Plan. Whether that runway translates into comp-driven margin expansion will determine whether fiscal 2026 becomes Red Robin's first full year operating under a stabilized capital structure in some time.