The Maryville-based Ruby Tuesday restaurant chain said Thursday it will close 95 of its underperforming locations by the end of the year in a move to help cut losses.
The locations to be shut down were not immediately identified.
Shares of the company fell 10.2 percent in after-hours trading on Thursday after the chain reported a fourth-quarter net loss of $27.6 million, or 46 cents a share, compared with a net gain of $4.3 million, or 7 cents a share, in the same quarter last year.
Adjusted earnings totaled 10 cents per share, while revenue totaled $279.3 million, down from $296.8 million last year.
But the costs of the planned closures make up a large portion of the $43.8 million expense that reduced net earnings.
The company said that employees displaced from the closed properties would be offered positions in nearby locations, when possible.
Ruby Tuesday said it had a total of 724 locations as of May 31. There were four restaurants in central Indiana.
“The decision to close restaurants is a difficult but necessary step as we take aggressive actions to strengthen our organization,” JJ Buettgen, the CEO, said in a release.
“Performance at each of these locations, despite the loyalty of valued guests and the efforts of our dedicated employees, was not meeting expectations,” he
Total revenue dropped 5.9 percent during the company’s fourth quarter, to $279.3 million.
Source: USA Today