Ruby Tuesday to close 95 restaurants nationwide

Ruby Tuesday operates 724 restaurants in 44 states, 14 countries and Guam. The initiative also includes improving its “food and beverage offering, diving environment and services at its namesake brand through a Fresh New Menu, Fresh New Garden Bar, and Fresh Experience”, according to a release. These initiatives will be rolled out in phases across multiple markets throughout the coming quarters.

Chief Executive JJ Buettgen blamed softness in the casual dining industry and increased promotional activity by rivals for the results.

It said the move is necessary so it can focus on its remaining Ruby Tuesday and Lime Fresh chains.

Buettgen concludes, “The decision to close restaurants is a hard but necessary step as we take aggressive actions to strengthen our organization”. But officials with the company said they’ll announce which exact locations will be closing later.

But the costs of the planned closures make up a large portion of the $43.8 million expense that reduced net earnings.

In all for the quarter, Ruby Tuesday reported a loss of $27.6 million, or 46 cents a share, down from a year-earlier profit of $4.3 million, or 7 cents a share. That compares with AUVs of about $1.6 million for company-owned restaurants, including those being shuttered.

The company could potentially add another five to 10 closures as leases expire, Briley said.

Additionally, the company projects full-year 2017 earnings to be in the range of 5 cents per share and 9 cents per share with comparable same-store sales to be flat or up 2%. Adjusted net income was $6.3 million, or $0.10 per share, flat to the prior-year fiscal quarter. Same-restaurant sales declined 3.7%.