MARYVILLE Tenn. Ruby Tuesday reported that third-quarter same-store sales improved at its casual-dining chain despite the negative impact of severe weather on traffic.
For the quarter ended March 2, same-store sales at corporate stores declined 0.8 percent to 1.0 percent, while same-store sales at franchised units fell between 5.3 and 5.5 percent. The company estimated that winter storms hurt same-store sales between 1.5 percent and 2 percent.
In the year-ago third quarter, Ruby Tuesday's same-store sales declined 6.8 percent at corporate stores and fell 5.1 percent at franchised branches.
“We are excited about the trends we are seeing in the Ruby Tuesday brand,” said Sandy Beall, founder and chief executive of Ruby Tuesday. “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."
Beall said customers are responding well to the chain's rebranding efforts, which included redesigned restaurants and an overhauled menu.
"While the macro-environment remains unclear, we are confident in our strategies," he said. "Our sales are strengthening, costs are in good shape, and guest satisfaction scores continue to be solid."
Ruby Tuesday said it would report full third-quarter results on April 7. The company operates 659 restaurants and franchises 225 locations.
Contact Elissa Elan at [email protected].