Ruby Tuesday Posts Big 1st-quarter Profit Jump

MARYVILLE, Tenn. (AP) — Casual dining chain Ruby Tuesday Inc. said Wednesday its fiscal first-quarter profit shot up dramatically despite lower sales, as cost saving measures kicked in and interest costs fell after debt payments.

The results topped Wall Street expectations, but the company issued a weak forecast for the year and shares gained just slightly in aftermarket trading.

For the three months ended Sept. 1, Ruby Tuesday said its profit rose to $6.1 million, or 11 cents per share, compared with earnings of $285,000, or a penny per share, in the corresponding period a year ago.

The per-share results reflect a 9 percent increase in the number of outstanding shares year over year.

Revenue fell 7 percent to $300.6 million, from $324 million last year.

Analysts polled by Thomson Reuters, on average, expected profit of 9 cents per share, on revenue of $296.9 million.

The company attributed the sales decline to operating 45 fewer restaurants this year. It said customer count was up in the quarter, but same-restaurant sales fell 3.1 percent. The figure is an important measure of restaurant health because it measures growth at existing stores rather than from expansion.