Upcoming AWS Coverage on Arcos Dorados Holdings

LONDON, UK / ACCESSWIRE / March 15, 2017 / Active Wall St. blog coverage looks at the headline from Ruby Tuesday, Inc. (NYSE: RT) as the Company announced on March 13, 2017, that it is exploring strategic options like sale of its business, merger, etc. The Ruby Tuesday's Board of Directors has retained the services of UBS to advise them on this project. Register with us now for your free membership and blog access at:

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One of Ruby Tuesday's competitors within the Restaurant space, Arcos Dorados Holdings Inc. (NYSE: ARCO), is expected to report earnings on March 15, 2017 after market close. AWS will be initiating a research report on Arcos Dorados following the release of its next earnings results.

Today, AWS is promoting its blog coverage on RT; touching on ARCO. Get all of our free blog coverage and more by clicking on the link below:

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Ruby Tuesday was founded in 1972 and was formerly known as Morrison Restaurants, Inc. Ruby Tuesday has been a publicly traded Company since 1996. Its chain of restaurants includes both Company-owned and franchise-run restaurants. It is known as a premium-casual-dining-place where one can get freshly prepared and hand crafted food. The restaurant chain is especially known for its salad bar and handcrafted burgers. Ruby Tuesday had 546 Company owned restaurants and 67 franchised restaurants as on November 29, 2016, which are located across 42 US states and 14 countries.

The strategic review is aimed at maximizing shareholder value and at the same time ensuring long-term success of the business. The Company has started working on the initial stages of the process of strategic and financial evaluation. Till the entire process is not completed, the Company has declined to share details of its future plan of action. The Company did not give any assurances with regards to the time required to complete the review or the result of the exercise.

Commenting on the matter, Stephen Sadove, Non-Executive Chairman of Ruby Tuesday said:

"Ruby Tuesday is an iconic American brand with a 45-year legacy of serving local communities great American fare. 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."

Unaudited Financial Results

In the same communication, the Company also disclosed its preliminary unaudited financial results for fiscal Q3 2017 ending on February 28, 2017. The Company reported total revenue of approximately $225.7 million, which included revenues from franchises. The cash-in-hand for the reported period was approximately $32.6 million. However, the same restaurant sales declined by approximately 4%.

Background

In August 2016, Ruby Tuesday had announced the closure of nearly 100 underperforming restaurants by end of September 2016. The Company contemplated absorbing the displaced full-time and part-time works at the nearby restaurant locations, wherever possible. The Company has been making tremendous efforts to attract more customers to its locations with an improved menu and better service under its "Fresh Start plan". However, these initiatives have not been able to majorly change the restaurant chain's fortunes.

Ruby Tuesday is not the only restaurant chain that has been facing a slowdown in business and taking the drastic step of closing down its outlets. In 2016, other restaurant chains like Bob Evans, buffet restaurants owned by Ovation Brands - Old Country Buffet, have also closed a number of their restaurants. Others like Boston-based chain ? Cosi and Nashville-based chain - Logan's Roadhouse, have even filed for bankruptcy. The changing consumer habits, competition from other fast-casual restaurants, bad financial planning including high debts are some of the factors influencing the closure of these restaurants.

Stock Performance

At the close of trading session on Tuesday, March 14, 2017, Ruby Tuesday's stock price soared 24.14% to end the day at $2.16. A total volume of 8.13 million shares were exchanged during the session, which was above the 3-month average volume of 651.45 thousand shares. Share of the Company have surged 12.50% in the last month. The stock currently has a market cap of $132.32 million.

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SOURCE: Active Wall Street