Ruby Tuesday, Inc. (NASDAQ: RT)
Ruby Tuesday, Inc. (RT), a casual dining franchise company yesterday announced that they will explore strategic alternatives to create better value for the long term success of the company. The company stated a sale or merger would be considered if it was in the best interest of the business.
Ruby Tuesday, Inc. CEO’s Comments
“Ruby Tuesday is an iconic American brand with a 45 year legacy of serving local communities great American fare. While we continue to focus on executing against our Fresh Start initiatives including the rollout of our Fresh New Menu, Fresh New Garden Bar and Fresh Experience, 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,” said Stephen Sadove, Non-Executive Chairman of Ruby Tuesday. “We are confident the process will identify the best strategic avenues to maximize the value of our business and achieve the best result for our shareholders, franchisees, and team members.” Business Wire
RT Technical Analysis
RT opened trading yesterday at $1.76 which was up from the previous day’s trading close of $1.75. Stock prices closed trading yesterday at $1.74 and spiked up after market to $2.05, equivalent to a 18% increase from the closing price. Taking a look at the daily chart we can see that the last time RT traded above these levels we have to go all the way back to January 20th, when it traded at $2.09.
Taking a closer look at the daily chart we can see that before the spike up RT had been in an overall downward trend dating back to January 5th when it traded at $3.53. RT has a float of 57.35 million shares and traded below the normal daily trading volume on Monday.
For trading purposes, I would like to see RT open trading on Tuesday above $1,95 and if it does I would be looking to take a long position at the bell. My stop loss would be $0.08 from my entry position fearing anything more than that and the stock would start to fill in the gap up.
Company Profile
Ruby Tuesday, Inc., incorporated on January 19, 1996, owns and operates Ruby Tuesday casual dining and Lime Fresh Mexican Grill (Lime Fresh) casual restaurants. The Company also franchises the Ruby Tuesday concept in selected domestic and international markets, and the Lime Fresh concept in selected domestic markets.
Its segments include Ruby Tuesday concept and Lime Fresh concept. As of March 1, 2016, the Company operated 729 Ruby Tuesday restaurants in 44 states, 13 foreign countries, and Guam, and there were 16 Lime Fresh restaurants in two states. Of those restaurants, it owned and operated over 649 Ruby Tuesday restaurants and franchised approximately 80 Ruby Tuesday restaurants, which consisted of 28 domestic and 52 international restaurants.
It also owned and operated over eight Lime Fresh restaurants and franchised approximately eight Lime Fresh domestic restaurants. The Company’s corporate-owned and operated restaurants are concentrated primarily in the Southeast, Northeast, Mid-Atlantic and Midwest of the United States.
The Company’s menu includes lunch, dinner, desserts and kids’ menu. The lunch menu includes shareable appetizers, salads and combinations, seafood, chicken, steaks, petite lunch plates, pastas, ribs and chops, half-pound burger baskets, sandwiches and wraps, and fresh sides.
The dinner menu includes shareable appetizers, salads and combinations, seafood, chicken, steaks, ribs and chops, half-pound burger baskets, sandwiches and fresh sides. The desserts menu includes New York Cheesecake, Blondie, Strawberry Shortcake Sundae, Chocolate Goblet Sundae, Ultimate Chocolate Cake, White Chocolate Cherry Cheesecake and Apple Crumble Flatbread. The kids’ menu includes meals, fresh sides, drinks and sweets. It also offers catering service. It also operates The Bar, which includes Cold Beer, Cocktails, Wine and Sangrias, and Zero Proof. Reuters
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