Ruby Tuesday Inc. said on Monday that it is exploring strategic alternatives — including a potential sale of the company — as it looks for ways to recover from more than a decade of sales and stock price declines.
The Maryville, Tenn.-based bar-and-grill chain has retained UBS as its financial advisor to assist in the process. The company said it would explore all options, including options other than a sale.
“Ruby Tuesday is an iconic American brand with a 45-year legacy of serving local communities great American fare,” Stephen Sadove, non-executive chair at Ruby Tuesday, said in a statement. “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.”
Ruby Tuesday stock surged 15 percent in after-hours trading on Monday.
The company said it is in the beginning stage of the strategic and financial review and could not give any assurance on timing of the review’s completion.
Ruby Tuesday preannounced a same-store sales decline of 4 percent for the company’s fiscal third quarter ended Feb. 28.
The 613-unit casual dining operator has struggled with falling sales and traffic for years. The company has periodically closed locations, including the closure of 95 units it announced last August.
The chain’s CEO, JJ Buettgen, resigned in September. Lane Cardwell has acted as interim CEO in his place ever since.
The company’s stock, which closed Monday at $1.74 per share, has been on a steady decline since it last came close to $10 a share in 2013.
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