Hi all, I just opened up a portfolio recently and have started looking into food/restaurant stocks. Quite a few restaurant stocks, RT included, seem to have had a pretty significant dip in early/mid 2007, RT included. What happened back then that led to this sharp decline? Did the price of food dramatically increase or something, cutting into revenue?
Sales were a problem because operations were not living up to expectations. Even though the company was focusing on staffing their restaurants, they had poor training practices due to the crunch they put on labor. Service had become similar to their competitors and they could not distinguish themselves. Ruby Tuesday's revenue was already dropping long before the financial crisis that hit a year later. Reducing their benefits package and not compensating very well to make profit did not help establish a dream team either.