News

Ruby Tuesday to focus on development of Lime Fresh

July 24, 2011

In Ruby Tuesday’s fourth quarter 2011 earnings report, the company said it will continue to make progress on the development of Lime Fresh Mexican Grill. The effort will include test rollouts in the Washington, D.C., and core Southeast markets such as Alabama, Georgia and Tennessee.

The company has six Lime Fresh locations on its development schedule and is in negotiation for several more, the report said.

During its fourth quarter, ended May 31, 2011, the company permanently closed seven company-owned Ruby Tuesday locations, opened one franchised location and closed five more. It also acquired two franchise-partner businesses representing 13 locations.

Same-store sales for domestic franchised restaurants increased by 1.8 percent for the quarter, while revenue increased 12.6 percent from the prior-year period, primarily due to the franchise partnership acquisitions.

For the full year, total revenue increased 5.9 percent from the prior year, its first annual revenue growth in four years. The increase was primarily driven by increased same-store sales and the franchise partnership acquisitions, partially offset by 12 restaurant closures (excluding conversions).

Same-restaurant sales increased 0.9 percent for the year at both company-owned and domestic franchise Ruby Tuesday restaurants.

For 2012, the company expects to close four to six company-owned restaurants (excluding conversions), convert six to eight company-owned restaurants to other casual dining concepts, open one new restaurant, and open seven to nine Lime Fresh Mexican Grill locations.