(RTTNews) - Casual dining restaurant chain Red Robin Gourmet Burgers Inc. (RRGB) said Wednesday that Board unanimously determined that Vintage Capital Management, LLC's proposal undervalues Red Robin and is not in the best interests of all shareholders, as the strategic plan currently being implemented by Red Robin positions the Company to deliver greater value to its shareholders than Vintage's proposal. Red Robin was responding to a letter from Vintage Capital.
The company said the Red Robin Board carefully reviewed and considered Vintage's proposal, consistent with its fiduciary duties and in consultation with its legal and financial advisors.
The Red Robin Board and management team said they are focused on executing the Company's strategic plan to restore growth and improve profitability. The company added that it will continue to review the Company's strategic priorities against all potential opportunities to create shareholder value.
The Red Robin Board had last week already unanimously rejected an unsolicited, conditional proposal made on July 18, 2019 by Vintage Capital to acquire all of the outstanding common shares of Red Robin for $40.00 per share.