RRGB - Buying back stock because?

RRGB put out a press release stating during the board of directors meeting on May 28, 2008, the board reaffirmed its intent, as previously announced in a press release dated August 16, 2007, to repurchase up to $50 million of the Company's common stock.

Buying back stock makes no strategic sense to me. Is this a great use of shareholder's capital? At 15x NTM EPS, I guess the stock looks cheap, but given the Q1 miss the earnings estimates may be aggressive. Is the board trying to send a signal that everything is ok? Even though the advertising campaign did not lift same-store sales as expected. Between buying back franchisees and it's accelerated pace of development, the company is burning cash. If we add in cash spent on buying back stock, RRGB will be taking on more debt, adding to the P&L volatility.

In this environment, debt is s dirty word!

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