Ruby Tuesday plans to say goodbye
to 10 percent of its domestic units

(Continued from page 4)

Markets Inc. in Dallas, the initial group of 40 closed restaurants had produced an annual multimillion-dollar loss for the parent company. He estimated that the closures could add between 4 cents per share and 8 cents per share on an annual basis going forward, although continued lease payments will dilute that gain.

“We view the decision as a positive for the company,” Ludington

said, “as it indicates that management is actively seeking out opportunities to secure the long-term success of the Ruby Tuesday brand.”

For the company’s latest fiscal year, which ended in June, net income fell 71.2 percent to $26.4 million, or 51 cents per share, from $91.7 mil-

lion, or $1.59 per share, a year earlier.

Latest-year revenue declined 3. 5 percent to $1.36 billion.

The casual-dining operation has struggled against slowed sales, increased costs from an ongoing renovation effort and high levels of debt during the past few years. During its latest quarter ended Sept. 2, the company posted the lowest quarterly profit ever since at least 1994, when public filings for Ruby Tuesday began. Same-store sales fell 10. 8 percent at corporate restaurants and fell 7.9 percent at domestic franchised locations, following more than two years of negative quarterly same-store sales.

Restructuring charges for the restaurant closures, including impairment and lease terminations or obligations, should total between $40 million and $55 million, the company said, and will be taken in both the November-ended second quarter and the current third quarter.

The company said details would be given during its second-quarter conference call on Jan. 7.

Ruby Tuesday added that it expected to remain compliant with bank covenants, which had been an issue for the company prior to a debt restructuring plan it closed last April that helped it avoid default. As of Sept. 2, the company held about $546 million in long-term debt, including capital leases.

On top of the restructuring charges, Ruby Tuesday said it would take a $19 million, pretax, noncash charge for goodwill impairment in its second quarter. Goodwill impairment charges relate to the value of trademarks and other intangible assets, and the company said the write-down was based on “the poor overall economic conditions, declines in fair value, declining sales … and a challenging environment for the restaurant industry.” ■

During its latest quarter, Ruby Tuesday posted its lowest quarterly profit since at least 1994 following struggles with declining same-store sales, increased costs for renovations and high levels of debt.

TARGET:

ACQUIRER:

ACTION:

COMMENTS:

Centerplate Inc. (stadium concessionaire) Kohlberg & Co.

Acquisition price reduced and financing arranged; new deal valued between $210 million and $223 million, down from the September agreement that was valued between $230 million and $240 million. Buyout terms include $2.50 per income deposit security, down from the original offer of $4, and the assumption of debt. Kohlberg also to contribute $125 million in equity. Centerplate amended its credit facility to extend maturity dates and include paydowns totaling about $50 million. Deal expected to close in the first quarter.

slockyer@nrn.com

Need to track restaurant stocks in real time, download industry data, and follow the market? Go to NRN Market Monitor at http://finance.nrn.com

SAME-STORE SALES TRENDS

PERIOD, END DATE

YEAR AGO % CHG. CHG.

SYS TEMWIDE UNLESS NOTED; NEW RESULTS IN BOLDFACE

QUICK SERVICE

Arby’s (corporate) - 7. 2 - 1.0 Burger King, Global 3. 6 5.9 Burger King, U.S. & Canada 3.0 6. 6 CKE: Carl’s Jr. (corporate) 0.1 2. 5

Hardee’s (corporate) 0.5 3. 2 Jack in the Box (corporate) -0.8 5. 2 McDonald’s, Global 7. 7 8. 2 McDonald’s, U.S. 4. 5 4. 4 McDonald’s, Europe 7. 8 10. 8 McDonald’s, Asia-Pacific/Middle East/Africa 13. 2 12.0 Popeyes Chicken & Biscuits, Global - 1.9 - 1. 7 Popeyes Chicken & Biscuits, U.S. - 2. 8 - 1.9 Sonic -0.6 3. 1 Wendy’s (corporate) -0.2 0.2 Wendy’s (franchised) 0.2 1. 3 Yum! Brands, blended chains, Global 3.0 4.0 Yum! Brands, blended chains, U.S. 3.0 1.0 Yum! Brands, blended chains, China 5.0 11.0 Yum! Brands, blended chains, International 4.0 7.0

CASUAL DINING

Applebee’s Neighborhood Grill & Bar, U.S. Q3, 9/30 -0.3 Benihana: Benihana teppanyaki Q2, 10/12 2. 4

Haru Q2, 10/12 4. 8 RA Sushi Q2, 10/12 3.0

BJ’s Restaurants, blended chains (corporate) Q3, 9/30 5. 6 Brinker: Chili’s Grill & Bar (corporate) Q1, 9/24 0.7

Maggiano’s Little Italy (corporate) Q1, 9/24 0.5 On the Border (corporate) Q1, 9/24 - 5. 3

Macaroni Grill (corporate) Q1, 9/24 - 4. 8 Buffalo Wild Wings (corporate) Q3, 9/28 8. 3 Buffalo Wild Wings (franchised) Q3, 9/28 5.9 California Pizza Kitchen (corporate) Q3, 9/28 3. 5 The Cheesecake Factory: The Cheesecake Factory Q3, 9/30 1.0

Grand Lux Café Q3, 9/30 4. 8

Darden: Bahama Breeze Q2, 11/23 0.1 The Capital Grille Q2, 11/23 1. 2 LongHorn Steakhouse Q2, 11/23 - 3.9 Olive Garden Q2, 11/23 3. 2 Red Lobster Q2, 11/23 0.1

Famous Dave’s (franchised) Q3, 9/28 - 3. 5 Granite City Food and Brewery Q3, 9/30 2. 7 Grill Concepts, blended chains Q3, 9/28 9.1 J. Alexander’s Q3, 9/28 1. 3 Kona Grill Q3, 9/30 4.9 Landry’s, various brands Q3, 9/30 1.0 McCormick & Schmick’s Seafood Restaurants Q3, 9/27 -0.1 Mexican Restaurants (corporate) Q3, 9/28 1. 8 Mexican Restaurants (franchised) Q3, 9/28 5. 4 Mimi’s Café Q2, 10/24 - 1. 5 Morton’s Q3, 9/28 7. 3 O’Charley’s: O’Charley’s (corporate) Q3, 10/5 - 1. 7

Ninety-Nine Restaurant & Pub (corporate) Q3, 10/5 1. 5 Stoney River Legendary Steaks (corporate) Q3, 10/5 -0.8

P.F. Chang’s China Bistro Q3, 9/28 - 1. 6 Red Robin Gourmet Burgers (corporate) Q3, 10/5 4. 8 Red Robin Gourmet Burgers (franchised), U.S. Q3, 10/5 2. 4 Ruby Tuesday (corporate) Q1, 9/2 - 4. 8 Ruby Tuesday (franchised) Q1, 9/2 - 2.9 Ruth’s Chris Steak House (corporate) Q3, 9/28 -0.4 Ruth’s Chris Steak House (franchised) Q3, 9/28 -0.5 Texas Roadhouse (corporate) Q3, 9/23 2. 5 Texas Roadhouse (franchised) Q3, 9/23 2.0

FAST-CASUAL

Chipotle Mexican Grill Q3, 9/30 3. 1 12. 4 Cosi Q3, 9/29 -0.1 1. 6 Einstein Noah, blended chains (corporate) Q3, 9/30 - 1. 7 5. 2 Panera Q39/25 3. 3 2. 6 Pei Wei Asian Diner Q3, 9/28 - 2.9 - 1.0 Qdoba Mexican Grill Q4, 9/28 - 1.0 5. 8 Rubio’s Q3, 9/28 - 2. 1 7. 1 Tim Hortons, Canada Q3, 9/28 3. 8 7. 7 Tim Hortons, U.S. Q3, 9/28 -0.6 4. 5

PIZZA

Chuck E. Cheese’s (corporate) Q3, 9/28 1. 1 - 2. 5 Domino’s Pizza, U.S. Q3, 9/7 - 6. 1 - 1. 6 Domino’s Pizza, International Q3, 9/7 5. 4 8. 3 Papa John’s Pizza, U.S. Q3, 9/28 1. 7 0.2 Pizza Inn, U.S. Q1, 9/28 1. 1 3. 4

COFFEE and SNACK

Caribou Coffee (corporate) Q3, 9/28 - 4. 7 1.0 Jamba Juice (corporate) Q3, 10/7 - 10. 3 3. 8 Krispy Kreme Doughnuts Q3, 11/3 - 1. 3 - 2.9 Starbucks Coffee, U.S. Q4, 9/30 - 8.0 4.0

FAMILY-DINING and BUFFET

Bob Evans Restaurants Q2, 10/24 -0.5 0.7 Cracker Barrel Old Country Store Q1, 10/31 - 3. 2 1. 8 Denny’s (corporate) Q3, 9/24 - 2. 7 1. 3 Denny’s (franchised) Q3, 9/24 - 6. 1 3. 2 Frisch’s Big Boy (corporate) Q1, 9/23 0.2 1. 2 Golden Corral (units franchised by Frisch’s) Q1, 9/23 1. 2 - 2. 8 IHOP Q3,9/30 0.2 2.0 Luby’s Q1, 11/19 - 6. 7 - 3. 4 Steak n Shake (corporate) Q4, 9/24 - 7. 4 - 3.9