Ruby Tuesday Pops 18% After Agreeing to Be Acquired

Ruby Tuesday Pops 18% After Agreeing to Be Acquired

The struggling restaurant chain, Ruby Tuesday (NYSE: RT), announced two major things Monday when it released its first-quarter fiscal 2018 financial results and also said it would be acquired by a private equity firm. The stock popped 18% higher as the stock inched closer to the agreed $2.40 purchase price per share.

The agreement calls for NRD Capital, an Atlanta-based private equity firm, to acquire all of Ruby Tuesday's common stock for $2.40 per share in cash. NRD will assume or retire all debt obligations for roughly $335 million. Ruby Tuesday dropped the announcement on the same day it reported total revenue declined 15.3% during the first quarter of fiscal 2018; its adjusted net loss was $0.01 per diluted share.

Image source: Getty Images.

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Source: Fool.com