When I read your article in october, I thought to myself "He had a bad experience, but who really likes chickpeas anyway"? But, now that I see you propogating the same crap here again, it is obvious that you are trying to make your puts profitable. You thought they would tank the quarterly earnings, and the stock would plumet. In their most recent release the sales were down, but the earnings matched. Now the stock isn't tanking and your puts are gonna expire. Fine, but I hope the investing public doesn't base their investment decisions on chick peas.
It is true that RT is fighting for market share, as is every company in the restaurant industry. It is true that they are making changes that are tough. But, as the intelligent analyst/investor you claim to be, you should know a company with cash flow of 90 mil a year isn't trying to save a buck by taking a few things off their salad bar? Come on. You fail to see the big picture. Think of a concept. Why would they make the changes to their salad bar (that everyone loves)? Do you really think that a management team composed of people that have been with the company for years would make changes to the salad bar for the sole reason of saving some money? Once again, the company does not have cash flow problems, or problems with financial sustainability. You have insinuated that the company can only stay out of financial ruin by taking some things off the salad bar. You are an insult to anyone that calls themselves an analyst.
Now, for my take on RT. The company did remove some items from the salad bar. I for one would have been more upset about the cran-raisins going away. They made the changes to make it possible to include the salad bar for free with any entree. This is a huge value to anyone who goes to RT, and fits in with their compelling value theme. Nothing similar is offered by any of their competitors. The company also operates other concepts, and has great potential with their Lime Fresh franchise agreement. They have developed 3 other concepts, that they can utilize to increase ROI in underperforming real estate locations. Yes, they have an excellent real estate portfolio, and that is just an added bonus. The real secret to RT is that they have some of the strongest restaurant operations systems in the industry. They can apply these systems to any restaurant/concept they operate. RT is creating a restaurant company that is nimble and flexible, and can operate effectively in any market. The growing pains have been tough, and there is still a way to go. But to think the stock will deteriorate from here is ludacris. Oh, and to think that they are going to talk about a change in marketing on a conference call, and then just immediately stop sending coupons just shows how lost your are. Any company can send an e-mail discount for free. The context of the comments on the call were to suggest they were looking to spend their advertising dollars in a different way (i.e. not paying print media). This will not happen overnight. Look for television and maybe radio adverts in the future. In summation, you are wrong in every analysis you make. Yes, as a consumer that likes chick peas and didn't get them when you expected them, I can understand your frustration. But to try and turn that into stock analysis, should make it clear to anyone that reads your article, that you have no idea what you are talking about. Good luck, enjoy watching your puts expire.
Your greedish gluttony as a bargain finder (consumer) may not have been in the best interests of the company. Other implications of your piece - your family are repeat diners - is it out of habit or lack of choice. Someone in your family gave your email address to RT?
We used to go to Ruby Tuesday a few times a year. What kept us going back was the great salad bar including the chic peas. That was the RT edge, IMHO. I would use a coupon if it were available but not having one didn't stop me. However, now even if I get a coupon I won't go. The chain has lost its appeal as evidenced by the weak same store sales. Don't assume that the real estate will bail you out as a shareholder. Stock held up well today given the terrible numbers but is susceptible to further downside. Do your own DD.