First off, let me tell you that I don't own a single share of Ruby Tuesday. I also have not shorted a single share of Ruby Tuesday. I'm not coming here to tell you anything good or bad ... but ...
I will you tell you that you had better take a trip to Ruby Tuesday - things have drastically changed in the last two weeks.
If you want to know how things are going at a restaurant, simply look at the salad bar. That usually is a stores main attention grabber - people come back to a restaurant with a beautiful salad bar.
6 months ago there were huge banners above the Ruby Tuesday salad bar announcing how they were adding 10 additional items. And they did. The store could not have been prouder ... and I've been paying $8.99 for a salad every week since then.
But go look at the salad bar now. I'm not going to tell you what it looks like - go see for yourself. All that is left is a garden salad - nothing more.
Go see what this corporation has done and then ask yourself whether you would pay $8.99 for that.
I sent my concerns to Ruby Tuesday corporate. But I would recommend that you shareholders start becoming concerned with your investment. Sure it is only a salad bar - but that is what Ruby Tuesday does - if it can't sell a salad what are they going to be able to sell?
There is still a Silver Spoon in Naples, FL. I ate there two weeks ago and the food and service was very good and reasonably priced. I also ate at Ruby's and the food was good, but not their service.
However, the food quality and service at Bonefish and Carrabba's Italian Grill beats all the other chains, and I seek them out whenever I am traveling or in Naples. I only wish OSI group was a public company so I could buy some stock. These people know how to run a restaurant!
Bonefish hasn't gone under. L & N seafood and Silver Spoon did. Chipotle has not gone under, Tia's did. American Cafe gone. What you may have to look at is the company's success at opening new concepts. Remember they ditched opening new concepts years ago because they were unable to get it to work. What has changed in their company that allows them to be successful at it this time?
In reply to your concerns about salad bar..I've been to Rubys about 3 times in past month..My grandkids love shrimp and pasta and their entrees are very reasonable ..As for the salad bar, they and I find plenty to eat but added to a main course, I think its about $3.00..We have never gone hungry and on Fri and Sat and Sun, you have to wait a goodly time to be seated. However they do honor a call in and seat you very fast. They serve decent food at a reasonable price and speaking to folks as they leave, no one so far has been anything but pleased. Now as to investments..I have made $$ with CBRL , DRI and a few other mid-class dining establishments. I own RT for some time (anywhere between $8 and 10) sold some at $15, and am currently in a hold position. My take is that summer time is here, people are still eating reasonably priced food, and are doing some travel.RT should continue to be profitable, and with some effort hit the $15 mark again. Good luck to you ..Semper Fi
The problem with RT is it is a dying chain. They are trying desperately to change their existing units to other concepts like Jim n Nicks. The top brass realize their concept is dying. They ran off most their experienced leadership years ago to save money and now overall their concept is falling apart. A chain with a reasonable priced salad bar should be flourishing with the economy in the toilet, but they are struggling to keep their stores afloat. Investing is very risky when they are trying to change their existing units into better ideas altogether.