New CEO JJ Buettgen described efforts to make the flagship brand more lively,
approachable and fun – in effect closer to but not all the way back to the brand’s
bar & grill roots. Over the past several years, the goal had been to reposition
Ruby Tuesday up to a higher quality and higher check brand position. Changes
will include more lower priced and familiar menu options as well as a shift in the
nascent TV advertising efforts. The company plans to spend $71-$75 million in
advertising in FY 2013 down from prior plans to spend $77-$82 million.
Management plans a near term shift to more couponing in its 4Q (May). We think
this move reflects more pending changes in advertising.
This round of turnaround efforts for Ruby Tuesday have just begun with
management ranks being filled out by the new CEO. It is premature to pass
judgment on new efforts but they will take time to implement.
I am waiting for a futher sell-off in the senior bonds to buy some and wait for a turnaround with a yield above 8% and better protection.
What did they say during the CC about the NII and the possibility of a next cut in the distribution?
This is the issue the market has been focused for months and the ROC I have seen coming and going is usually a warning sign this is going to happen. I hoped sooner at least uncertainty is removed.
Thx for the answer. Unfortunately it seems the CC did not dissipate worries and discount is hitting new highs. I know this company and their mutual funds are highly rated. Anyway I my best pick remains BWG which is really absurdly priced at 14% discount to NAV.