Ruby Tuesday, Inc. to Explore Strategic Alternatives
March 13 2017 - 4:05PM
Business Wire
Ruby Tuesday (NYSE:RT) 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.
The information presented above is based upon information
available to the Company as of the date of this press release, is
not a comprehensive statement of the Company’s financial results
for the fiscal third quarter ended February 28, 2017 and has not
been audited or reviewed by the Company’s independent registered
public accounting firm. The Company’s actual results as of and for
the fiscal third quarter ended February 28, 2017 may differ
materially from this preliminary data. During the course of the
preparation of the Company’s interim financial statements and
related notes for the fiscal third quarter ended February 28, 2017,
additional adjustments to the preliminary financial information
presented below may be identified. Any such adjustments may be
material.
About Ruby Tuesday, Inc.
Ruby Tuesday, Inc. owns and franchises Ruby Tuesday brand
restaurants. As of November 29, 2016, there were 613 Ruby Tuesday
restaurants in 42 states, 14 foreign countries, and Guam. Of those
restaurants, we owned and operated 546 Ruby Tuesday restaurants and
franchised 67 Ruby Tuesday restaurants, comprised of 18 domestic
and 49 international restaurants. Our Company-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).
Safe Harbor Statement
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. The Company cautions that there has been no decision as to
whether the Company will elect to pursue any of the strategic
alternatives it may consider, and there can be no assurance that
any such alternatives will result in changes to the Company's
business plan or a sale of the Company and that the preliminary
financial information presented herein is based upon information
available to the Company as of the date of this press release and
the Company’s actual results may differ materially from this
preliminary data. Investors are also cautioned that forward-looking
statements involve risks and uncertainties that may affect the
business and prospects of the Company, including, without
limitation: risks related to the Company’s business strategy; risks
related to the Company’s ability to operate successfully in the
current challenging economic environment; risks related to the
Company’s efforts to strengthen its brands; and other risks and
uncertainties that may cause results to differ materially from
those set forth in the forward-looking statements. Past performance
may not be indicative of future results. Although the Company
believes the expectations reflected in such forward-looking
statements are based upon reasonable assumptions, there can be no
assurance that its expectations will be realized. In addition to
the risks and uncertainties set forth above, investors should
consider the risks and uncertainties discussed in Part I, Item A of
the Company’s Annual Report on Form 10-K for the year ended May 31,
2016. The Company does not undertake any obligation to publicly
update any forward-looking statement to reflect events or
circumstances after the date on which any such statement is made or
to reflect the occurrence of unanticipated events.
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version on businesswire.com: http://www.businesswire.com/news/home/20170313006272/en/
ICRMedia RelationsJessica Liddell,
203-682-8208RubyTuesday@icrinc.comOrInvestor RelationsMelissa
Calandruccio, CFA, 646-277-1273RubyTuesdayIR@icrinc.com
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