Ruby Tuesday Inc. narrowed its loss in the second quarter ended Dec. 2, despite a dip in same-store sales comparisons, the company reported Thursday.
The Maryville, Tenn.-based casual-dining operator reported a loss of $9.3 million, or 15 cents per share, from $34.4 million, or 57 cents per share, in the same period a year ago. Revenue fell 4.9 percent, to $262.7 million, from $276.2 million in the prior year. The company said the revenue decrease reflected the closure of 42 restaurants over the prior year and a drop in same-store sales during the quarter.
Second-quarter same-store sales declined 1 percent at company-owned restaurants, Ruby Tuesday said. Same-restaurant guest counts at company-owned units fell 1.3 percent from the same period a year ago.
“We believe one of the primary drivers of our softer results in the current quarter was the impact of lapping last year’s successful menu and value launch,” said J.J. Buettgen, Ruby Tuesday’s chairman, president and CEO, in a statement. “We also lowered our marketing spend from prior year as we continued our efforts to make our marketing plans more cost effective.”
“While our brand transformation is a journey, and near-term results may fluctuate, we remain confident in our strategy,” Buettgen added.
Ruby Tuesday owns and franchises 744 Ruby Tuesday restaurants in 44 states, 13 foreign countries and Guam, and 28 Lime Fresh restaurants in six states and the District of Columbia. As of Dec. 28, the company owned and operated 663 Ruby Tuesday units and 20 Lime Fresh restaurants.
2Q NET LOSS
Result: $9.3 million, or 15 cents per share(from $34.4 million, or 57 cents per share)
2Q REVENUE
Result: $262.7 million% Decrease: 4.9% (from $276.2 million)
2Q SAME-STORE SALES
% Decrease corporate: 1%Source: Company report
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