Good Food, Not Sure About the Stock

Sunday's drive back again from Christmas within western Pennsylvania provided the somewhat rare possibility to give struggling casual dining identify Ruby Tuesday (RT) an additional try. the rarity stems in the proven fact that it is sometimes challenging to get my family to agree on a series restaurant, given our varied tastes.While I've followed the actual identify on and also off (and owned it a period as well as two) to get a quantity of years, it had been numerous since I'd stopped inside to find a meal. Ruby Tuesday continues for you to be the potential turnaround regarding several years, but nevertheless has not really had the opportunity to get again on track. Your business nearly imploded within 2008 because of to the combination of debt, general industry conditions, as well as inability for you to differentiate itself from most regarding the other casual dining chains.While it's survived, it certainly features not really prospered. A Range Of menu changes, store redesigns along with failed forays in to additional dining concepts, it just can't appear to flip the particular corner. Indeed, the particular deck could always be stacked against Ruby Tuesday, as restaurant turn-arounds are usually quite rare. Denny's (DENN) did it, arguably against significantly stiffer odds. Domino's Pizza (DPZ) would it, along with among your greatest marketing campaigns the actual sector features actually seen. Red Robin (RRGB) do it, using involvement through activists. Ruby Tuesday, however, is constantly on the muddle along inside casual dining purgatory.When I suggested that will we now have lunch there yesterday, all of our own teenage children mentioned "what's Ruby Tuesday"? The Particular answer, "it's like Applebee's, or perhaps T.G.I Friday's", reveals a fantastic deal. There's merely small brand name recognition, and also the casual dining area will be incredibly crowded and competitive. That's any shame, too, because the food, every person agreed, really was quite good. Your salad bar ended up being really fresh, the burger and also fries on this list of very best I've had not too long ago from comparable chains. Granted, that was just 1 location, thus I might have got going to yet another spot or even two.From the fundamental perspective, Ruby Tuesday can become a "tale of 2 companies". This offers not really turned a yearly revenue since 2011, and also broke even in 2012. Income offers fallen pertaining to numerous years,and the actual stock presently trades at 2009 levels. However, the - - total amount sheet offers improved more than the years. Total credit card debt presently is an acronym with $232 million, down from $600 million in 2008. Your subsequent large credit card debt maturity is not until 2020 ($217 million). The Actual company also offers $57 million inside cash, or perhaps slightly below $1 per share.In addition, the business can be real-estate rich, owning your property and also building pertaining to 303 areas as well as building just for an additional 257. This potentially presents the business along with possibility to monetize a few locations, as Denny's and also Cracker Barrel (to an inferior extent) have got done. Or Even it could ultimately allow it to always be able to be appealing to become taken private, or acquired by simply another chain looking to somewhat cheaply broaden its footprint. Ruby Tuesday's current enterprise value is just $520 million.Of course, in order because involving it to outlive and prosper on its own, it requirements to put clients in the seats. It wants for you to differentiate itself from other casual dining chains, which in turn it's failed in order to do, despite many attempts. at this point, perhaps the particular very best suggestion begins having a title change. Out using the old as well as in using the new. You've reached get customers' attention. Get any contest in order to rename your company. Give away totally free food for life to the - - winner. Possess a quantity of sort of gimmick that will grab attention.Denny's achieved it a long period ago, using a couple of Super Bowl advertising campaigns that gave away totally free breakfasts for you to consumers willing to exhibit up. Domino's made it happen by simply admitting throughout commercials what has pizza recipe had grown stale, and also changed your formula. Red Robin offers endless French fries.Truthfully, I'm uncertain Ruby Tuesday can easily transform it around. I was impressed from the food, and also intrigued by the stock from a deep worth perspective. Nevertheless I've additionally been to become able to this rodeo before.