Ruby Tuesday, Inc. (NYSE:RT)’s Same-Restaurant Sales Fall By 1.9%

Posted by George Brook April 11, 2014 0 Comment 1404 views

Ruby Tuesday, Inc. (NYSE:RT) has released its third quarter financial results for the fiscal year 2014, ending March 4, 2014. The company’s revenue from operations fell 3.8 percent year-over-year to $295.6 million, which surpassed analysts’ expectations of $284 million.

Ruby Tuesday’s diluted loss per share was $0.07, compared to $0.1 profit per share in the same quarter last year. Net loss for the quarter was $7.4 million, down from a net income of $4.7 million reported in the same quarter last year. Net loss, adjusted for special items, was $4.5 million, as compared to the adjusted net income of $6.28 million during the comparable quarter previous year.

The company said their same-restaurant sales fell 1.9 percent relative to the third quarter 2013 for company-owned restaurants, and 2.2 percent for domestically franchised restaurants. Same-restaurant guest counts also decreased 1.7 percent during the quarter.

Interestingly, Ruby Tuesday’s total debt reduced from $306 million at the end of Q3FY13 to $267 million at the end of third quarter FY2014. The cash flow of the company improved to $12.7 million. At the end of the quarter, the company had total $44.5 million of cash compared to $31.8 million a year ago.

During the quarter, the company closed 24 company-owned restaurants and one company-owned Lime Fresh restaurant.

JJ Buettgen, Chairman, President and CEO, said, “We have made solid progress over the past eight months on our brand transformation strategy. The execution of this strategy resulted in sequential quarterly improvement in our same-restaurant sales and guest counts, both of which also reflected sequential improvement by month during the third quarter. We believe there is great opportunity as we execute on our brand transformation strategy and continue to build on this early momentum. We still have work to do, but we are pleased with our progress over the last two quarters. We are confident in our brand transformation strategy and believe we have the right teams in place to support our goal of increasing guest counts, growing same-restaurant sales, and increasing shareholder value.”

In its fourth quarter guidance, the company said it expects same-store restaurant sales to be between +1 percent and -1 percent. It also plans to shut down another 6-9 Ruby Tuesday restaurants during the Q4FY14, which could lead to extra costs in the range of $2.5-$3.5 million.

For full year, capital expenditures are estimated to be $30-33 million. For the fourth quarter, the company aims to spend $7-$10 million in capital expenditures. Ruby Tuesday expects to realize cash inflows of $2-$4 million during Q4FY14 and $13-$15 million for the full year.

About George Brook

George Brook covers money and politics for GDP Insider. George is a veteran journalist who has also covered Congress, national political conventions and presidential politics. George also covers the White House as well as economic and domestic policy for GDP insider. George's reporting has won numerous awards, including two Scripps Howard awards, two National Headliners, two Gerald Loeb Awards, as well as honors from Sigma Delta Chi and the National Press Club.

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