Does Ruby Tuesday have its eye on other restaurant chains? The Maryville-based casual dining chain announced today it has launched a private offering
to sell senior notes due 2020 to finance a variety of corporate needs, including future acquisitions.
Proceeds from the sale will be used to repay outstanding debt under the company’s revolving credit facility, pay off certain mortgage obligations, and other general corporate purposes, including buying back stock and “to pursue potential strategic acquisitions,” according to a news release.
Ruby Tuesday lost a bunch of money in the last quarter, but there are reasons to feel good about the restaurant chain’s future, says a Motley Fool report.
“On the face of it, Ruby Tuesday’s $2 million loss in the last quarter may not be exactly good news. And some people are complaining about the salad bar. I would, however, put my money on the company,” says the report by Priya Singh.
Among the positives cite by Singh are “licensing agreenments with concept restaurants such as Lime Fresh Mexican Grill, Marlin & Ray’s, and Truffles Cafe. These restaurants have good brand positioning in the fast casual segment, which is a growing segment in an industry where demand exceeds supply.”
Motley Fool: Ruby Tuesday Won’t Go Out of Tune