Ruby Tuesday, Inc. Reports Continued Sales Improvement
Ruby Tuesday, Inc. (NYSE: RT) today announced that same-restaurant sales for Company-owned restaurants were -0.8% to -1.0% in the third quarter ended March 2, 2010, compared to the same quarter of the prior year.
Severe weather during the quarter is estimated to have reduced same-restaurant sales by 1.5-2%. Same-restaurant sales at domestic franchised restaurants decreased 5.3-5.5% in the third quarter compared to the same quarter of the prior year.
Sandy Beall, Founder and CEO, commented, “We are excited about the trends we are seeing in the Ruby Tuesday brand. Our same restaurant sales have improved sequentially over the past five quarters and were the best they have been in three years, even increasing slightly in January and February, despite the worst weather in memory across many of our core markets. On top of this, comparisons were more difficult because we began to lap improving same-restaurant sales and guest traffic during the third quarter of fiscal 2009 as awareness of the “New Ruby Tuesday” grew in response to our marketing efforts. We believe that our key brand initiatives of “Uncompromising Freshness and Quality, Gracious Hospitality, a Fresh New Look and Compelling Value” are resonating with our guests. Our primary objectives going into fiscal year 2010 were to increase sales and traffic, maximize cash flow, reduce our debt and to further strengthen our brand and we are definitely delivering on these goals. While the macro-environment remains unclear, we are confident in our strategies. Our sales are strengthening, costs are in good shape, and guest satisfaction scores continue to be solid.”
