Ruby Tuesday Loss Narrows, Revenue Misses View; Stock Down

(RTTNews) - Restaurant operator Ruby Tuesday Inc. (RT), Thursday reported a loss for the second quarter that narrowed from a year ago, helped by lower expenses that offset a decline in revenues. Loss for the quarter were in line with analysts' estimates while revenues fell short of estimates.

Moving ahead, the company lowered its same-restaurant sales guidance for the full year. Ruby Tuesday shares slipped 8 percent in after-hours trade on the New York Stock Exchange.

Maryville, Tennessee-based Ruby Tuesday's second-quarter loss narrowed to $9.3 million or $0.15 per share from last year's loss of $34.4 million or $0.57 per share. On average, six analysts polled by Thomson Reuters estimated a loss of $0.15 per share for the quarter. Analysts' estimates typically exclude special items.

Revenue for the quarter dropped to $262.7 million from $276.2 million last year, reflecting the closure of 42 restaurants and decrease in same-restaurant sales at company owned restaurants. Analysts had a consensus revenue estimate of $268.43 million for the quarter.

Same restaurant sales for the quarter dropped 1.0 percent at company-owned restaurants.

Results were helped by lower operating expenses that dropped to $266.6 million from $305.6 million last year.

Looking forward to the third quarter, the company expects same-restaurant sales to be in a range of negative 2 to positive 1 percent.

For the full year, the company now expects same-restaurant sales to be between negative 1 percent to positive 1 percent. The outlook is revised from prior growth guidance of positive 1 to positive 2 percent.

RT closed Thursday's trading at $7.10, but slipped $0.60 or 8.45% in the after-hours trade.