Ruby Tuesday Posts Loss, Yet Tops Estimates; Stock Up - Update

(RTTNews) - Restaurant operator Ruby Tuesday Inc (RT) on Wednesday reported a slip to loss in the third quarter, as revenue continued to slide due mostly to store closures and weak same-store sales at namesake restaurants. Results for the quarter also reflect higher general and other expenses.

However, loss per share for the quarter was lower when compared with Wall Street estimates, even as revenue surpassed expectations. Ruby Tuesday shares gained 11 percent in after-hours trade on the New York Stock Exchange.

Maryville, Tennessee-based Ruby Tuesday posted a third-quarter net loss of $7.3 million or $0.12 per share, compared with a net profit of $2.2 million or $0.04 per share last year.

Results for the quarter included closure and impairment charges of $0.03 per share, net of tax.

Excluding items, adjusted loss for the quarter was $4.5 million or $0.07 per share, compared with a profit of $6.3 million or $0.10 per share a year ago.

On average, eight analysts polled by Thomson Reuters expected a loss of $0.08 per share for the quarter. Analysts' estimates typically exclude special items.

Revenue for the third quarter dropped to $295.6 million from $307.4 million in the prior year. Eight analysts had a consensus revenue estimate of $284.22 million for the quarter.

On a same-restaurant basis, sales for the quarter fell 1.9 percent at company-owned Ruby Tuesday restaurants.

During the third quarter, Ruby Tuesday closed 24 company-owned restaurants and plans to close about six to nine restaurants in the fourth quarter. As of March 2014, there were 679 Ruby Tuesday restaurants and franchised 76 outlets operating.

For the fourth quarter, the company expects same-restaurant sales to decline or increase by up to 1 percent. The company is pursuing cost-cutting measures and expects $3 million in savings in the quarter.

Ruby Tuesday stock closed Wednesday at $5.96, up $0.12 or 2.05%, on a volume of 1.6 million shares on the NYSE. In after hours, the stock climbed $0.64 or 10.74% at $6.60.