Ruby Tuesday announced changes in its C-suite after generating a loss of $3.1 million on a 5.1 percent decline in revenues, to $271.5 million, for the quarter ended March 1.
Same-store sales for the quarter declined year over year by 3.1 percent, compared with a 0.3 percent decline for the matching period of the prior fiscal year, the company said. It blamed the slide on discounting, heightened competition and bad weather that forced a number of stores to close temporarily.
Ruby lost $769,000 during the same period of the prior fiscal year.
Revenues were hammered down this year by having 20 fewer company-run restaurants in operation. Ruby Tuesday has been shutting and selling off some restaurants.
Restaurant-level operating margins ebbed to an average of 17.1 percent, management said.
Almost simultaneously with disclosing the third-quarter results, Ruby announced that CFO Jill Golder would step down as of Monday to take a position at an unidentified company, and that Tom Williams, formerly of the Jo-Ann fabrics retailer, had been hired as chief people officer.
“Tom not only has significant human resources experience, but also a background in leading store operations and supply chain which has provided him with a deep understanding of HR opportunities at a multi-unit operation,” Ruby CEO JJ Buettgen said in announcing the appointment.
Golder has worked in Ruby’s finance department since April 2013. The company said it would start a search for her replacement immediately.
“Our third quarter was a volatile period affected by weather, softness in the casual dining industry and increased promotional activity by our peers,” Buettgen said in a prepared statement on the financial results released today. “Despite this challenging environment, we continue to believe that our key brand initiatives will drive an improvement in guest counts.”
Members help make our journalism possible. Become a Restaurant Business member today and unlock exclusive benefits, including unlimited access to all of our content. Sign up here.