The company's business strategy is based on quality, service, and value; with highly customizable burgers, quick delivery, and the price ranging from $6.99 to $15.49.
Red Robin Gourmet received an offer to buy the company for $40 per share, but it was rejected by the Board of Directors.
If we use the 2020 EBITDA of $102 million, the company trades at 5x 2020 EBITDA.
With an EBITDA margin of ~7-8%, thin operating profits, and 5% interest rates, we would not buy shares right now.
If the company decides to find another buyer and hires a financial advisor, Red Robin's share price could increase quite a bit, perhaps to more than $40.