Ruby Tuesday Inc. shares sank 10.2% in Thursday after-hours trading after the restaurant chain reported quarterly losses and said it would close about 95 underperforming restaurants by next month. Ruby Tuesday reported a fourth-quarter net loss of $27.6 million, or 46 cents per share, compared with net income of $4.3 million, or 7 cents per share, for the same period last year. Adjusted earnings totaled 10 cents per share, missing the 11 cents-per-share FactSet estimate. Revenue totaled $279.3 million, down from $296.8 million last year and below the $285 million FactSet consensus. Same-restaurant sales fell 3.7%. Ruby Tuesday announced a turnaround initiative that includes food and beverage improvements and restaurant redesigns. The closures, part of that initiative, are a large portion of the $43.8 million expense that reduced net earnings. Employees impacted by the closures will be offered positions in nearby locations, when possible. Ruby Tuesday had 724 restaurants as of May 31, 2016. The restaurant's stock is down 45.3% for the past year while teh S&P 500 Index is up 4.9% for the same period.
Copyright © 2016 MarketWatch, Inc.