Ruby Tuesday to Shut Down Nearly 100 Locations

636066089254707166-ruby-tuesday

The Maryville-based Ruby Tuesday restaurant chain said Thursday it will close 95 of its underperforming locations by the end of the year in a move to help cut losses.

The locations to be shut down were not immediately identified.

Shares of the company fell 10.2 percent in after-hours trading on Thursday after the chain reported a fourth-quarter net loss of $27.6 million, or 46 cents a share, compared with a net gain of $4.3 million, or 7 cents a share, in the same quarter last year.

Adjusted earnings totaled 10 cents per share, while revenue totaled $279.3 million, down from $296.8 million last year.

But the costs of the planned closures make up a large portion of the $43.8 million expense that reduced net earnings.

The company said that employees displaced from the closed properties would be offered positions in nearby locations, when possible.

Ruby Tuesday said it had a total of 724 locations as of May 31. There were four restaurants in central Indiana.

Click here to read more

Source: USA Today | Knoxville (Tenn.) News Sentinel