Ruby Tuesday (NYSE: RT), an owner of two casual dining chains, reported its first quarter results after Thursday’s market close.
The company said that it lost $0.11 per share in the first quarter on revenue of $256.7 million. Wall Street analysts were expecting the company to lose just one cent per share on revenue of $263 million.
Following the earnings print, shares of Ruby Tuesday fell nearly 4 percent and was trading at $2.41 and is within striking distance of its 52-week low of $2.38. The stock has also lost more than half of its value since the start of 2016 and nearly 60 percent over the past year.
Investors had reason to sell the stock as total revenue fell 8.2 percent in the quarter and included a net reduction of more than 100 company-owned restaurants. In addition to declining total sales, same-restaurant sales fell 2.7 percent in the quarter after rising 0.6 percent in the same quarter a year ago.
Net loss for the quarter was $6.8 million compared to a net loss of $1.6 million in the same quarter a year ago. Adjusted EBITDA also fell to $4.9 million from $15.0 million a year ago.
The company also reported an update to an ongoing initiative it calls “Fresh Start.”
As part of the initiative, 95 restaurants have been closed since its new gameplan was announced on August 11 of this year.
A new menu is being planned across all of its core Ruby Tuesday restaurants and will consist of shareable appetizers, garden fresh salads, pastas, desserts, new drinks and a kids menu. The menu will also better emphasize the company’s core value of selling fresh ingredients.
In addition, the company will roll out a brand new salad bar across all Ruby Tuesday restaurants in January of next year.
Finally, by the end of 2016 the company will complete 11 of 13 planned store remodels. A further six to eight stores will be remodeled through May of next year.
“We are embarking on a period of accelerated strategic change for Ruby Tuesday, and we believe that with a thoughtful but decisive approach, we can deliver improved profitability and enhance shareholder value,” Lane Cardwell, Interim President and Chief Executive Officer said. “I am confident that these strategies coupled with our service improvements will bring same-restaurant sales back into positive territory in fiscal 2017.”