Ruby Tuesday, Inc. (NYSE: RT)
Ruby Tuesday, Inc. (RT), a global franchise of casual dining restaurants yesterday reported their fiscal second quarter 2017 financial results. Ruby Tuesday reported a second quarter loss of $38 million with a second quarter loss of $0.63 per share. The company reported second quarter revenues of $214.7 million.
Ruby Tuesday, Inc. CEO’s Comments
Lane Cardwell, Interim President and Chief Executive Officer, commented, “While the results of our fiscal second quarter were disappointing, I am excited about the strategic changes and the new product rollouts that began with the introduction of our Fresh New Menu in November and will continue in January with the national launch of our Fresh New Garden Bar.” Cardwell continued, “Our progress in executing the key strategies of the Fresh Start initiative should be viewed in two stages. The first is marked by the launch of our Fresh New Menu in mid-November while the second is marked by the launch of the enhanced Garden Bar in mid-January. We believe this combination will ultimately have a positive impact on our performance through increasing guest count and frequency.” Cardwell concluded, “Our new menu has been designed to showcase the affordability and value that Ruby Tuesday offers. We view the national launch of our reinvented Garden Bar as our greatest brand differentiator by appealing to customers’ desire for fresh, healthy options. Furthermore, based on market survey data the New Garden Bar resonates well and scores high with our target customer base. Most importantly, the entire team is focused on providing an enhanced guest experience through new product offerings as well as service improvements. We believe these efforts should change the trajectory of our business and drive shareholder value.” Business Wire
RT Technical Analysis
Ruby Tuesday opened trading yesterday at $3.58 which was up from the previous day’s trading close of $3.52. Shares closed trading yesterday at $3.53 and crashed down after market to $3.01, equivalent to a 15% decrease from the closing price. Taking a look at the daily chart we can see that the last time RT traded below these levels we have to go back to November 10th, 2016 when it traded at $2.94. Taking a closer look at the daily chart we can see that before the spike down RT had been in an overall upward trend dating back to October 7th when it traded at $2.34.
Ruby Tuesday has a float of 56.79 million shares and traded 1.15 times the normal daily trading volume on Thursday. For trading purposes, I would like to see RT open trading on Friday below $3.20 and if it does I would be looking to take a short position at the bell. My stop loss would be $0.10 from my entry position fearing anything more than that and the stock would start to fill in the gap down.
Ruby Tuesday, Inc., together with its subsidiaries, engages in the ownership, development, operation, and franchise of casual dining restaurants under the Ruby Tuesday name in the United States and internationally. As of May 31, 2016, the company owned and operated 650 Ruby Tuesday restaurants and 80 franchised Ruby Tuesday restaurants in 44 states, Guam, and internationally. Ruby Tuesday, Inc. was founded in 1920 and is based in Maryville, Tennessee. Yahoo Finance