Sandy Beall, founder and CEO of
Ruby Tuesday Inc.
) recently announced his intention to bow out from management and
the board. Since its inception, the company's operating policy has
been regulated by Beall, who is also the Chairman of the Board.
Ruby Tuesday will start to look for a suitable replacement
immediately. A committee of the board will monitor the entire
transition process. The committee intends to seek help from an
executive search firm to find efficient successors for the
aforesaid positions. During this session of leadership changes,
Beall will continue to assume all three positions to ensure a
Sandy Beall is about to retire after running the Tennessee-based
company for 40 years. Under his leadership, the company achieved
new heights in terms of overall performance and profitability,
implementation of strategies, and organic as well as inorganic
He opened the first Ruby Tuesday outlet in Knoxville, Tennessee
in the year 1972. Ten years later, the concept with all its 16
units was acquired by Morrison, Inc. During the following
years, the chain kept flourishing and expanded to over 300 outlets.
However, after doing a fairly good job, Ruby Tuesday spun off from
Morrison Restaurants in 1996.
As of now, Beall, with more than 30,000 team members, is
accountable for the company's 740 owned and 85 franchised Ruby
Tuesday restaurants. The company also owns and operates the
fast-casual dining concept Lime Fresh Mexican Grill and the casual
dining concept Marlin & Ray's.
We appreciate the company's future strategies including
improving margins by lowering costs, driving same-restaurant sales
through several value offerings, focusing on low capital growth
opportunities and returning excess cash to shareholders.
Ruby Tuesday, which competes with
Texas Roadhouse Inc.
), currently retains a Zacks #3 Rank, implying a short-term Hold
rating. We are also maintaining our long-term Neutral
recommendation on the stock.
RUBY TUESDAY (RT): Free Stock Analysis Report
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