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Ruby Tuesday (RT) Beats on Q4 Earnings, Misses Revenues - Analyst Blog

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Ruby Tuesday, Inc.RT recently posted fiscal fourth quarter and 2015 results. While earnings beat the Zacks Consensus Estimate in the fourth quarter, revenues missed the same. The company posted sluggish comps. However, the company ended its streak of loss. It had been posting losses consistently over the past three quarters.

Earnings and Revenue Discussion

This restaurateur posted earnings per share of 12 cents that beat the Zacks Consensus Estimate of 11 cents by 9%. Also, earnings increased 100% year over year. The upside reflects a decline in costs and taxes.

Ruby Tuesday Inc. - Earnings Surprise | FindTheBest

Meanwhile, total revenue of $296.8 million missed the Zacks Consensus Estimate of $302.0 million by 1.7%. Also, revenues declined 3.4% year over year due to the comps decline at company-owned restaurants and net reduction of 10 company-owned Ruby Tuesday restaurants.

Behind the Headlines

Same-restaurant sales declined 1.7%, worse than comps decline of 0.3% in the prior quarter due to lower guest count.

Restaurant-level margin (excluding franchise revenue) came in at 18.5%, flat year over year, due to a 2.6% decline in cost of goods sold, 5.8% decline in payroll and related costs and other restaurant operating costs.

Fiscal 2015 Results

Adjusted earnings per share in fiscal 2015 were 1 cent that compared favorably with the Zacks Consensus estimate of a loss of 7 cents and a loss of 65 cents in the year-ago quarter. Total revenue of $1.13 billion was down 3.6% year over year.

Strong Fiscal 2016 Earnings Guidance

The company expects adjusted earnings per share in the range of 12 cents to 17 cents, better than the year-ago loss of 7 cents. Also, it compares favorably with the Zacks Consensus Estimate of earnings of 8 cents.

Comps are expected in the range of flat to up 2% in fiscal 2016. Restaurant level margins are expected in the range of 17% to 17.5%.

Ruby Tuesday has a Zacks Rank #2 (Buy).

Other Stocks to Consider

Other well-ranked stocks in the same industry include Carrols Restaurant Group, Inc. TAST , Dave & Buster's Entertainment, Inc. PLAY and Diversified Restaurant Holdings, Inc. BAGR . All these stocks sport a Zacks Rank #1 (Strong Buy).

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RUBY TUESDAY (RT): Free Stock Analysis Report

CARROLS RESTRNT (TAST): Free Stock Analysis Report

DIVERSIFIED RST (BAGR): Free Stock Analysis Report

DAVE&BUSTRS ENT (PLAY): Free Stock Analysis Report

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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