Restaurant chain Ruby Tuesday has tried several new ideas to recover from
the Great Recession but the company might be better off getting into the real estate business, a Bloomberg report suggests.
A story on Bloomberg.com says restaurant companies such as Maryville-based Ruby Tuesday and Lebanon, Tenn.-based Cracker Barrel Old Country Store “can make more money selling their own real estate than food.”
“The 10 biggest U.S. restaurants that sell for less than the value of their property, plants and equipment trade at 70 cents on the dollar,” Bloomberg says. The report notes that Ruby Tuesday owns $1 billion worth of fixed assets, “twice its market value.”
Activists investors are taking a hard look at both companies.