During 2006, Ruby Tuesday plans to open 50 company-owned stores and 40 franchisee units with the objective of opening 100 units or more in the coming years. Beall said that the chain has already locked down 800 plus locations across the United States and expects to bring on an additional 15 franchisees to encourage store expansion. The company projects capital expenditures for fiscal 2006 to reach $175 million to $180 million.

In September 2005 the chain returned to positive same-store sales on a system-wide basis. Of the chain's existing company-owned restaurants, same-store sales increased 1.9% for the quarter with same-store sales at Ruby Tuesday's freestanding restaurants, which represent approximately 80% of the units, increasing 2.6%. Same-store sales at franchise restaurants decreased 0.2% during the quarter. "Our goal is to have 3% to 4% same-store sales increases," Beall said, adding later in the call that the executive team believes those numbers represent a realistic goal.

Beall attributes the improved operations to four key areas: guest obsession, food and service, menu differentiation and marketing. "Food and quality are up," he said, adding that the new "burger-centric" menus have received higher ratings from guests and food delivery time has improved by four minutes. Moreover, the chain started advertising likes its peer group, emphasizing its new menu and improved ingredients such a higher quality meat, vine-ripened tomatoes and thick applewood smoked bacon.