MARYVILLE, TN– (hospitalitybusinessnews.com)–Ruby Tuesday today announced it will explore strategic alternatives in order to maximize shareholder value and position the business for long-term success. The Board of Directors will consider all strategic alternatives including, but not limited to a potential sale or merger of the Company, and has retained UBS as its financial advisor to assist in the process.
“Ruby Tuesday is an iconic American brand with a 45 year legacy of serving local communities great American fare. While we continue to focus on executing against our Fresh Start initiatives including the rollout of our Fresh New Menu, Fresh New Garden Bar and Fresh Experience, we believe now is the right time to explore strategic alternatives that have the potential to position the business for long-term success and to carry that legacy forward,” said Stephen Sadove, Non-Executive Chairman of Ruby Tuesday. “We are confident the process will identify the best strategic avenues to maximize the value of our business and achieve the best result for our shareholders, franchisees, and team members.”
Ruby Tuesday is in the beginning stage of the strategic and financial review, and no assurance can be given as to its outcome or timing. The Company does not intend to make any further public comment regarding the review until it has been completed.
Preliminary Fiscal Third Quarter 2017 Results
The Company also announced the following preliminary unaudited financial results for the fiscal third quarter ended February 28, 2017.
- Total revenue, including franchise revenue, of approximately $225.7 million.
- Same restaurant sales declined approximately 4.0%.
- Total cash balance of approximately $32.6 million.