Ruby Tuesday To Slow Development, Acquire Franchisees

Ruby Tuesday's five-year plan calls for a slowdown in new restaurant development. It will focus on growing sales at existing restaurants, closing poorly performing restaurants and expanding corporate acquisitions of certain franchisees. Ruby Tuesday anticipates growth of only 30 restaurants a year.

For fiscal 2007, the casual restaurant chain anticipates opening around 45 company-owned restaurants, compared to 60 last year. In addition, it anticipates roughly 25 franchise openings this year. Its reported net income for the second quarter was down by $700,000 compared to the previous year. The restaurant chain anticipates soft restaurant demand and a growing excess supply of restaurants. [GlobeSt.Retail]