Ruby Tuesday to shutter 95 restaurants nationwide

Ruby Tuesday to Close 95 Stores

Shares of Ruby Tuesday Inc (RT.N) plunged as much as 14 percent in extended trading on Thursday after the restaurant chain operator posted its fourth straight quarterly loss and said it would close about 95 restaurants.

The company, whose shares had fallen about 44 percent in the past 12 months through Thursday's close, also forecast 2017 adjusted profit far below analysts' estimate.

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The casual dining chain, which sold its Lime Fresh Mexican Grill brand in June, said the stores will cease operations by September and it expected to incur related pre-tax charges of $72 million to $81 million.

Ruby Tuesday had about 724 restaurants systemwide as of May 31.

See which department stores are struggling in 2016:

Struggling department stores of 2016
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Struggling department stores of 2016
TORONTO, ONTARIO, CANADA - 2016/03/08: Sears store entrance, is an American chain of department stores. Known for selling high quality clothing article from shoes to shirts. (Photo by Roberto Machado Noa/LightRocket via Getty Images)
Macy's Inc. signage is displayed at a department store in New York, U.S., on Monday, Feb. 22, 2016. Macy's Inc., the largest U.S. department-store company, is scheduled to report fourth-quarter 2015 earnings before the opening of U.S. financial markets on February 23. Photographer: Michael Nagle/Bloomberg via Getty Images
J.C. Penney Co. signage is displayed outside of a store at the Gateway Shopping Center in the Brooklyn borough of New York, U.S., on Saturday, Aug. 8, 2015. J.C. Penney Co. is scheduled to release earnings figures on Aug. 14. Photographer: Michael Nagle/Bloomberg via Getty Images
UNITED STATES - JUNE 09: Customers enter the Dillards department store at Parkdale Mall, in Beaumont, Texas, Wednesday morning, June 9, 2004. A judge declared a mistrial in a lawsuit brought against Dillard's Inc. by 17 black shoppers in Texas who claimed that security guards at the department store chain harassed them because of their race. (Photo by Scott Eslinger/Bloomberg via Getty Images)
MIAMI, FL - APRIL 19: A Nordstrom sign is seen outside a store on April 19, 2016 in Miami, Florida. Nordstrom on Monday said in a cost-cutting measure they are expecting to lay off 350 to 400 people. (Photo by Joe Raedle/Getty Images)
The sign outside the Kmart store is seen in Broomfield, Colorado November 19, 2009. Sears Holdings Corp posted a narrower-than-expected quarterly loss November 19, 2009, helped by the first increase in same-store sales at its Kmart unit in four years. REUTERS/Rick Wilking (UNITED STATES BUSINESS)

The company forecast adjusted profit of between 5 cents and 9 cents per share for its financial year ending June 6, 2017, compared with analysts' average estimate of 13 cents, according to Thomson Reuters I/B/E/S.

Same-restaurant sales fell 3.7 percent in the fourth quarter, much bigger than the 1.7 percent decline in the same period a year earlier.

Total revenue fell 5.9 percent to $279.3 million.

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Chief Executive JJ Buettgen blamed softness in the casual dining industry and increased promotional activity by rivals for the results.

Buettgen said he expected the macro environment to remain challenging for some time.

The company's shares were trading down 10 percent at $3.35 in after-hours trading on Thursday.

(Reporting by Arathy S Nair in Bengaluru; Editing by Sriraj Kalluvila)

RELATED: Compare the price of coffee at 10 fast-food joints:

Price of coffee at 10 fast-food places
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Price of coffee at 10 fast-food places


McCafe premium roast coffee, small: $1.00

Burger King

Smooth roast coffee, small: $1.00

Krispy Kreme

Coffee (smooth, rich, or decaf), small: $1.59

Dunkin' Donuts

Hot coffee, small: $1.59

Tim Hortons

Coffee (original blend, dark roast or decaf): $1.59

Caribou Coffee

Coffee of the day, small: $1.69

Panera Bread

Hot coffee, small: $1.89


Freshly brewed coffee, tall: $1.85

Bruegger's Bagels 

House blend coffee, small: $1.99


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