Plot
The movie opens in medias res, as Little Red Riding Hood (Anne Hathaway) discovers that the Wolf (Patrick Warburton) has disguised himself as Red's Granny (Glenn Close), just as the ax-wielding Woodsman (Jim Belushi) bursts through the window. The police quickly arrive, and led by detective Nicky Flippers (David Ogden Stiers), the four are questioned about the events leading up to the incident.
Flippers discovers that all four are innocent and learns the true story behind the events. Red is attempting to protect her Granny's recipe book from the "Goody Bandit", but ends up meeting the Wolf, an investigative journalist also tracking down thefts by the Goody Bandit with his hyperactive photographer squirrel, Twitchy. The Wolf, based on Irwin Fletcher from the 1985 comedy Fletch and dressed identically to the Fletch character in the first movie, is suspicious of Red, causing Red to panic and run away. However, when she encounters him again, she beats him up. Afterwards, she flees into the mountains where she finds help from a singing mountain goat Japeth. Meanwhile, Grannie, a successful goodie maker leading a double-life as extreme sports athlete, "Triple-G", has entered a skiing competition, but finds that a European ski team to be playing dirty and trying to disable Granny. Granny learns from them that the Goody Bandit hired them to take out Granny. Granny avoids them by using grenades to cause an avalanche. The Avalanche is seen by Japeth the goat, Red, Wolf and Twitchy. Japeth begins singing his Avalanche song after his Prepared song. Granny 'wins the ski race by a landslide' (as said in the news) and escapes the avalanche by deploying a parachute to parasail towards home. At the same time, Red and Japeth try to get to Granny's house on a minecart, but Twitchy accidentally lights a stick of dynamite while the wolf and he are also trying to get to Granny's house in a mountain railway car further down the track. They destroy the railway causing Red's cart to leave the track. Red, as she is falling, sees her Granny, believing her to be a vision but in reality Granny still on her parachute, telling her to use her hood to safely land. The Wolf and Twitchy, however, have a more dramatic crash, but manage to make it to Granny's house before Red. Granny, as she tries to land, finds herself entangled in the parachute's drawstrings, and lands in her closet, ensnared by ropes. The Wolf quickly dons his Granny disguise before Red arrives in order to try to apprehend her. Simultaneous to these events, the Woodsman (Kirk), an aspiring actor, is selling schnitzel on a stick to children, but becomes victim to a robbery by the Goody Bandit. When he receives a callback he learns that a studio is looking for him to try again for a part, he practices by chopping down trees, accidentally causing one to nearly run him over as it falls, forcing him to jump through Granny's window to get away safely, just as Red discovers the Wolf.
Flippers recognizes that the only commonality to these events was a bunny named Boingo (Andy Dick), and deduces he may be the Goody Bandit. Red, despondent upon learning of her grandmother's double life, alone, follows Boingo up to a mountain hideout via an air tram, and tries to confront him about his thefts, but he, along with the ski team, captures her and rigs her on the air tram loaded with explosives. Granny, the Wolf, Twitchy and the Woodsman shortly follow Red, discovering her predicament, and send a caffeine-loaded Twitchy down to alert Flippers and the other cops. The other three are able to save Red and capture Boingo as the cops arrive. The next day, Flippers tells Red, Granny, the Wolf, and Twitchy (the Woodsman went on to become a world-famous yodeller) that he is a member of the "Happily Ever After Agency", and enlists the four to start a private agency with him.
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