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Ruby Tuesday Sells Lime Fresh Mexican Grill Chain, Focuses on Its Turnaround

MARYVILLE, Tenn.—Ruby Tuesday, Inc. (NYSE:RT) announced today that EverFresh Endeavors has bought its Lime Fresh Mexican Grill brand for $4.6 million. The sale includes the franchising and intellectual property rights for Lime Fresh.

Ruby Tuesday has experienced tumbling stock prices as the casual dining chain has experienced falling restaurant-level profit margins and declining same-restaurant sales. In April, the company reported that same restaurant sales declined by 0.5 percent in 2015. It declined by 4.8 percent the year before, and 3.1 percent in the last quarter.

JJ Buettgen, chairman of the board, president and CEO of Ruby Tuesday explained why Ruby Tuesday was shedding the brand it bought four years before. "We believe focusing exclusively on the brand transformation of our namesake Ruby Tuesday restaurants is in our shareholders' best interest," said the CEO about focusing on the company's core business, Ruby Tuesday. "We are pleased to complete the sale of the Lime Fresh Mexican Grill, and we will continue to execute the Ruby Tuesday brand transformation," said Ruby Tuesday's CEO.

EverFresh Endeavors is a joint venture between Triout Holdings, Mandala Holdings and Belmont Investment Corp. It has experience with restaurant operations, hospitality development and retail real estate.

Ruby Tuesday bought the Lime Fresh brand, its seven company-owned restaurants and its rights to royalties of five franchises in April 2012.

 

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