Ruby Tuesday, Inc. Announces Sale of Church Street Building and Consolidation of Maryville Restaurant Support Center
September 22 2016 - 4:15PM
Business Wire
Ruby Tuesday, Inc. (NYSE: RT) today announced that it has
entered into an agreement with Altar’d State to sell its Church
Street property for $2.8 million. The 40,000 square foot building
is located at 150 W. Church Avenue in Maryville, TN. The completion
of the transaction is targeted for October 2016, subject to
customary closing conditions.
Additionally, Ruby Tuesday has announced plans to consolidate
its Restaurant Support Center at its property at 333 E. Broadway
Avenue in Maryville, TN by the end of January 2017. This follows
the Company’s announcement on August 11, 2016 to close 95
restaurants as part of its asset rationalization plan.
Lane Cardwell, Interim President and Chief Executive Officer,
commented, “Consolidating our Restaurant Support Center will
streamline our cost infrastructure as we continue to execute
against our Fresh Start initiatives. We are confident in our
long-term strategies and believe we are positioning Ruby Tuesday to
deliver improved operational results over time.”
About Ruby Tuesday, Inc.
Ruby Tuesday, Inc. owns and franchises Ruby Tuesday brand
restaurants. As of August 30, 2016, there were 615 Ruby Tuesday
restaurants in 42 states, 14 foreign countries, and Guam. Of those
restaurants, we owned and operated 547 Ruby Tuesday restaurants and
franchised 68 Ruby Tuesday restaurants, comprised of 18 domestic
and 50 international restaurants. Our corporate-owned and operated
restaurants are concentrated primarily in the Southeast, Northeast,
Mid-Atlantic, and Midwest of the United States, which we consider
to be our core markets. For more information about Ruby Tuesday,
please visit www.rubytuesday.com. Ruby Tuesday, Inc. is traded on
the New York Stock Exchange (Symbol: RT).
Forward-looking Information
This press release contains various forward-looking statements
within the meaning of Section 27A of the Securities Act of 1933, as
amended, and Section 21E of the Securities Exchange Act of 1934, as
amended. Forward-looking statements represent our expectations or
beliefs concerning future events, including one or more of the
following: future financial performance (including our estimates of
changes in same-restaurant sales, average unit volumes, operating
margins, expenses, and other items), future capital expenditures,
the effect of strategic initiatives (including statements relating
to cost savings initiatives and the benefits of our marketing), the
opening or closing of restaurants by us or our franchisees, sales
of our real estate or purchases of new real estate, future
borrowings and repayments of debt, availability of financing on
terms attractive to the Company, compliance with financial
covenants in our debt instruments, payment of dividends, stock and
bond repurchases, restaurant acquisitions and dispositions, and
changes in senior management and in the Board of Directors. We
caution the reader that a number of important factors and
uncertainties could, individually or in the aggregate, cause our
actual results to differ materially from those included in the
forward-looking statements, including, without limitation, the
following: general economic conditions; changes in promotional,
couponing and advertising strategies; changes in our customers’
disposable income; consumer spending trends and habits; increased
competition in the restaurant market; laws and regulations,
including those affecting labor and employee benefit costs, such as
further potential increases in state and federally mandated minimum
wages and healthcare reform; the impact of pending litigation;
customers’ acceptance of changes in menu items; changes in the
availability and cost of capital; potential limitations imposed by
debt covenants under our debt instruments; weather conditions in
the regions in which Company-owned and franchised restaurants are
operated; costs and availability of food and beverage inventory,
including supply and delivery shortages or interruptions;
significant fluctuations in energy prices; security breaches of our
customers’ or employees’ confidential information or personal data
or the failure of our information technology and computer systems;
our ability to attract and retain qualified managers, franchisees
and team members; impact of adoption of new accounting standards;
impact of food-borne illnesses resulting from an outbreak at either
one of our restaurant concepts or other competing restaurant
concepts; effects of actual or threatened future terrorist attacks
in the United States; and other risks and uncertainties described
in the Risk Factors included in Part I, Item A of our Annual Report
on Form 10-K for the year ended May 31, 2016.
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version on businesswire.com: http://www.businesswire.com/news/home/20160922006267/en/
Investor RelationsICRMelissa Calandruccio,
646-277-1273RubyTuesdayIR@icrinc.comorMedia
RelationsICRChristine Beggan,
203-682-8329RubyTuesday@icrinc.com
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