Ruby Tuesday, Inc. (NYSE:RT) stock was soaring on Tuesday following news that the company is considering a sale.
Ruby Tuesday, Inc. says that its Board of Directors are exploring strategic alternatives for the company to maximize shareholder value. This may result in a sale or merger of the company. It also notes that UBS Group AG (USA) (NYSE:UBS) is acting as its financial advisor as it looks into its strategic alternatives.
The company is also now starting a strategic and financial review. Ruby Tuesday, Inc. says that it doesn’t know what the outcome will be of its strategic and financial review, or when it will be complete. It says it won’t make any more public comments about the process until it is done.
“We believe now is the right time to explore strategic alternatives that have the potential to position the business for long-term success and to carry that legacy forward,” Stephen Sadove, Non-Executive Chairman of Ruby Tuesday, Inc. said in a statement. “We are confident the process will identify the best strategic avenues to maximize the value of our business and achieve the best result for our shareholders, franchisees, and team members.”
Ruby Tuesday, Inc. has also released preliminary financial results for its fiscal third quarter of 2017. It is expecting revenue for this quarter to be $225.70 million. The restaurant chain says that same store sales will be down 4% and it will have a cash balance of $32.60 million.
RT stock was up 20% as of Tuesday morning, but is down 35% year-to-date.