Ruby Tuesday Shares Rise As Analyst Ups Estimates

NEW YORK (AP) — Shares of casual dining chain operator Ruby Tuesday Inc. rose on Wednesday, after an analyst said new sales drivers such as a new weekend brunch offering could boost results.

Shares rose 34 cents, or 4.6 percent, to $7.72 during midday trading. The stock has traded between 85 cents and $8.82 over the past year.

In July, the company reported better-than-expected results for its fiscal fourth quarter, helped by cost cuts and a smaller decline in sales at established restaurants.

For the quarter ended June 2, Ruby Tuesday's profit rose to $14.4 million, or 28 cents per share. It was the second consecutive quarter the Maryville, Tenn.-based chain beat analyst expectations, and Morgan Keegan analyst Robert Derrington, who rates the company "Market Perform," said that trend could continue.

Derrington increased his full year 2010 earnings estimate to 65 cents from 50 cents, at the top end of company guidance of 50 cents to 65 cents per share. Analysts polled by Thomson Reuters, on average, predict a profit of 57 cents per share.

"Revisions to our previous earnings per share estimate reflect projected gradually improving same-store sales, lower selling, general and administrative expeneses," and other items, he said. "New weekend brunch could further lift our projections."