NEWS: Ruby Tuesday said Wednesday it will close 30 restaurants in the next few months, and said it took a larger loss during its fiscal second quarter.
DETAILS: The company will close 27 of the 30 stores during the fiscal third quarter and will close the rest in the fourth quarter. The company has struggled with slower sales and declining profitability and is trying to reposition the Ruby Tuesday chain into a more vibrant brand.
The company had 779 Ruby Tuesday and Lime Fresh locations as of Dec. 3.
NUMBERS: Ruby Tuesday Inc. said it lost $34.4 million, or 57 cents per share, in the latest quarter. A year ago it took a smaller loss of $15.1 million, or 24 cents per share. Ruby Tuesday said it lost 43 cents per share in the latest quarter if one-time items are excluded. Revenue fell 8 percent, to $276.2 million from $300.1 million.
Analysts expected a loss of 28 cents per share and $270.9 million in revenue, according to FactSet.
The company's results were hurt by closure and impairment charges, costs related to job cuts and restructuring, and other one-time items.
FUTURE: The Maryville, Tenn., company said it will take $2 million in charges related to restaurant closures in the third quarter, and said it has identified initiatives that should help it cut merchandise costs by $6 million a year.
STOCK: Shares of Ruby Tuesday fell 2.1 percent to $5.97 on Wednesday and were unchanged in aftermarket trading.