Ruby Tuesday, Inc. (NYSE: RT) today reported financial results for the fiscal first quarter ended September 3, 2013.
Results for the first quarter include:
- Same-restaurant sales decreased 11.4% at Company-owned Ruby Tuesday restaurants and decreased 8.4% at domestic Ruby Tuesday franchise restaurants
- Net loss from continuing operations of $21.9 million compared to net income from continuing operations of $3.1 million for the prior year
- Diluted loss per share from continuing operations of $0.36 compared to diluted earnings per share from continuing operations of $0.05 for the prior year
- Recorded $7.5 million in pre-tax impairment charges, which are non-cash, and lease reserves related to underperforming or closed Company-owned locations
- Repurchased $12.9 million of our high yield bonds at a slight premium to par, and prepaid $9.9 million of mortgage debt
- Maintained a cash position at the end of the first quarter of $35.9 million, compared to $65.5 million of cash on hand in the prior year
- Opened three domestic Company-owned Lime Fresh restaurants and two franchise Lime Fresh restaurants, one of which was international
- Closed three Ruby Tuesday Company-owned locations and two international franchise Ruby Tuesday locations
JJ Buettgen, President and CEO, commented, “The first quarter was challenging as the overall economy failed to realize any significant improvements which adversely affected us and the casual dining industry. We are disappointed that our first quarter same-restaurant sales came in below our expectations. However, we made progress during the quarter in our strategy to re-establish Ruby Tuesday as a fun, energetic, and broadly-appealing brand, with the highlight being the August 12 launch of our new pretzel burgers and flatbreads. These items represented the first wave of our core menu transformation and the feedback from our guests has been encouraging as these new food platforms at price points of $5.99 to $9.99 address our guests’ desire for innovation, variety, and affordability.