Stephens analyst Will Slabaugh notes that Vintage Capital filed a 13-D stating its belief that the Board of Red Robin should "immediately commence a comprehensive review of strategic alternatives, including an auction of the Issuer", with Vintage prepared to call a special meeting of shareholders to potentially remove members of the Board if they do not promptly commit to reviewing possible strategic-alternatives. While Red Robin has shown "poor business momentum" recently, the analyst points out that the company's substantial cash-flow profile, refranchising potential, and attractive valuation make the company "interesting" for prospective Private Equity buyers. Vintage Capital now holds an 11.6% stake and stated they "are prepared to bid $40 per-share in the auction process to acquire 100% of the company in an all-cash transaction," Slabaugh adds. The analyst has an Overweight rating and $36 price target on the shares.