Ruby Tuesday Posts Loss In Q4; To Close Approx. 95 Restaurants

(RTTNews) - Ruby Tuesday, Inc. (RT) reported a fourth-quarter net loss of $27.6 million, or $0.46 per share, compared to net income of $4.3 million, or $0.07 per share, prior year. Adjusted net income was $6.3 million, or $0.10 per share, flat to the prior-year fiscal quarter.

Fourth-quarter total revenue declined 5.9% to $279.3 million, which included a net reduction of 12 corporate-owned Ruby Tuesday restaurants and 17 corporate-owned Lime Fresh Mexican Grill restaurants during fiscal 2016. Same-restaurant sales declined 3.7%.

Ruby Tuesday provided full-year 2017 adjusted net income per share guidance of $0.05 to $0.09. The company expects the fifty-third week in fiscal 2017 to impact adjusted net income per share by approximately $0.02. Fiscal 2017 same-restaurant sales are expected to be flat to up 2%.

JJ Buettgen, CEO, stated: "Our fourth quarter was impacted by softness in the casual dining industry and increased promotional activity by our peers. Given that we expect the macro environment to remain challenging for some time, we are taking the necessary steps to change the trajectory of our business."

Ruby Tuesday announced plans to streamline the organization, improve financial profitability, and create long-term value for shareholders through its Fresh Start initiative. The company determined to close approximately 95 underperforming restaurants. These locations will cease operations by September 2016.