Ruby Tuesday (RT) Stock Plunges on Q4 Earnings Miss

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Ruby Tuesday, Inc. (NYSE:RT) shares took a nosedive on the company’s fiscal fourth-quarter results.

Ruby TuesdayOverall, the restaurant reported adjusted earnings of 10 cents a share for its most recent three-month period. The figure missed the consensus estimate of 11 cents per share.

Ruby Tuesday revealed that same-restaurant sales fell 3.7%, considerably lower than the 1.7% decline on this same area that was reported last year.

Additionally, its quarterly results were negatively impacted by the company’s decision to close 95 stores across the U.S. Many workers losing their jobs will have the opportunity to apply to other nearby locations.

Closures are part of the company’s $43.8 million expense that caused earnings to slump this quarter. This is a significant increase year-to-year as closure expenses amounted to $4 million a year ago.

The fast-casual locale’s revenue also failed to meet expectations, coming in at $279.3 million, marking a year-to-year decline of $17.5 million. Analysts polled by FactSet called for net sales of $285 million.

Guest counts were 4.6% lower for the quarter, but the company has announced a turnaround initiative that should boost its coming quarters. Fresh Start will help Ruby Tuesday streamline its business with the purpose of creating long-term value for shareholders.

Additionally, Fresh Start will make the restaurant healthier, bringing in more customers in an age where what’s in your food matters more than it ever has. A new selection of salads and greens, a revamped menu, and healthier beverages highlight the initiative.

RT stock is down 12.9% Friday.

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Article printed from InvestorPlace Media, https://investorplace.com/2016/08/ruby-tuesday-rt-stock-2/.

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