Ruby Tuesday sold, new CEO is named
An Atlanta equity firm completed its purchase of the Maryville, Tenn.-based restaurant chain effective Thursday. The sale to NRD Capital had been announced in October, and a “large majority” of shareholders approved the transaction at a special meeting in New York on Wednesday.
The sale became final amid a wave of federal lawsuits filed last month by at least eight Ruby Tuesday shareholders who sought to stop it. The lawsuits claim Ruby Tuesday leadership failed to pursue better offers from other potential buyers.
Ruby Tuesday officials insisted those buyers didn’t submit credible proposals.
Aziz Hashim, founder and managing partner of NRD Capital, will take over as CEO. He replaces Jim Hyatt, who had been the chain’s CEO and president.
“Ruby Tuesday is an iconic American brand that is well-known for providing its guests with delicious food, great value and a differentiated dining experience,” Hashim said. “It is our belief that by leveraging the brand’s core strengths – investing in its people and product, exploring new opportunities for growth and executing operational excellence initiatives across the company – Ruby Tuesday can once again generate excitement with diners.”
Economy grows at 3.2 percent rate
The U.S. economy grew at a 3.2 percent annual rate from July through September, slightly slower than previously estimated but still enough to give the country the best back-to-back quarterly growth rates in three years.
The Commerce Department said the third quarter growth was revised down slightly from last month’s estimate of 3.3 percent. That change reflects slightly less spending by consumers, which was offset somewhat by increased spending by state and local governments.
Papa John’s founder ousted over comment
Papa John’s says its founder, John Schnatter, will step down as CEO next month, weeks after he publicly criticized the NFL leadership over national anthem protests by football players.
Schnatter will stay on as chairman but be replaced as chief executive by Chief Operating Officer Steve Ritchie on Jan. 1.
Mortgage rates rise but below year ago
Long-term U.S. mortgage rates rose this week but remain lower than they were a year ago. The five-year adjustable-rate mortgage rate hit the highest level since mid-2011.
Mortgage giant Freddie Mac said Thursday that the rate on 30-year fixed-rate mortgages rose to 3.94 percent, up from 3.93 percent last week. They stood at 4.30 percent a year ago. The rate on 15-year fixed-rate mortgages, popular among homeowners who are refinancing, rose to an average 3.38 percent, highest since March and up from 3.36 percent last week. But it still down from 3.52 percent a year ago.
The rate on five-year adjustable-rate mortgages rose to 3.39 percent, highest since June 2011 and up from 3.36 percent last week.
Comcast sued over recorded service calls
The state of Washington announced Thursday it is expanding a lawsuit against cable and internet provider Comcast and accusing the company of discarding recorded customer service calls the attorney general claims is evidence of the company’s alleged deceptive sales practices.
Washington State Attorney General Bob Ferguson said investigators uncovered more illegal conduct by Comcast as the investigation developed, particularly as the state sought recorded customer service calls.
Philadelphia-based Comcast said it strongly disagrees with Ferguson’s new claims and said his assertions were based on flawed methodology and assumptions. The company said it will continue to vigorously defend itself in court.
“The Service Protection Plan gives those consumers who choose to purchase it great value by covering virtually all service charges over 99% of the time,” Marianne Bichsel, vice president of external affairs for Comcast’s Washington Region, said in a statement.
The initial lawsuit filed in 2016 claimed Comcast profited from the misleading service protection plan and that Comcast committed more than 1.8 million violations of the state’s Consumer Protection Act by charging improper service call fees and using improper credit screening practices.