Ruby Tuesday 2Q posts net loss, revenue gain
Jan. 6, 2012
by Meat&Poultry Staff
MARYVILLE, Tenn. – Ruby Tuesday Inc., which offers hand-crafted burgers, fresh chicken, steaks and ribs, among other protein menu items, reported for its second quarter of fiscal 2012 ended Nov. 29 a net loss of $2.0 million compared to prior-year net income of $4.6 million. Total revenue, however, increased 5.9 percent from the prior-year period due to the fiscal 2011 franchise partnership acquisitions.
Sales at domestic and international franchise Ruby Tuesday restaurants totaled $40.7 million and $79.9 million for the second quarter of fiscal 2012 and 2011, respectively. This decline was primarily driven by the franchise partnership acquisitions during fiscal 2011 and same-restaurant sales for domestic franchise restaurants decreasing by 6.0 percent during the second quarter.
“Our same-restaurant sales results for the second quarter were flat on a two-year basis as we were going up against strong same-restaurant sales of 4.2 percent from the prior year,” said Sandy Beall, founder, chairman and CEO. “While our same-restaurant sales for the quarter were below our expectations, we were able to operate more efficiently from a cost standpoint, which enabled us to realize earnings that were better than our guidance.”
Although the company opened its first Lime Fresh inline location in Huntsville, Ala., Oct. 5, and opened a newly-constructed Truffles Grill in Winter Park, Fla., Nov. 2, it did not open any new Ruby Tuesday restaurants during the quarter, closed one restaurant and temporarily closed three restaurants in anticipation of conversion to other concepts.
Domestic and international franchisees opened one new Ruby Tuesday restaurant and closed nine. Five of the closures resulted from the cancellation of the company’s franchise agreement in India where it is currently seeking a new partner.
Ruby Tuesday Inc. operates company-owned and/or franchise Ruby Tuesday brand restaurants in 45 states, the District of Columbia, 14 countries and Guam. It owns and operates 742 Ruby Tuesday restaurants; domestic and international franchisees operate 43 and 44 Ruby Tuesday restaurants, respectively.