This Day On The Street
Continue to site
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

Bankruptcy Watch: 20 Riskiest Restaurant Stocks

Ruby Tuesday

Altman Z-Score, Current: 2.57

Altman Z-Score, 2009: 2.57

Ruby Tuesday (RT - Get Report) is the least risky of the group, with a Z-Score of 2.57 for the last 12 months, flat from the previous year. But the casual restaurant chain remains on shaky ground.

In its recent quarterly report, Ruby Tuesday posted a decline in year-over-year revenues, booking a 1.2% drop in sales to $313.5 million, missing expectations by just under $1 million. The softening was primarily driven by the shuttering of 16 company-owned restaurants in its fiscal-fourth quarter compared with the year-earlier period.

The all-important metric of same-store sales, also known as comps, which measure sales at well-established stores open at least one year, grew just 0.3% at Ruby Tuesday-owned restaurants last quarter, while franchised locations saw same-store sales drop 0.5%.

Even so, Ruby Tuesday's profits grew by healthy percentages and earnings of $21 million, or 33 cents per share, easily beat Wall Street's expectations.

The casual restaurant chain also forecast disappointing fiscal 2011 earnings per share in a range of 76 cents to 86 cents, and cautioned that its operating margins would be down for the year as it invests more money into a higher-quality menu and new product offerings.
2 of 21

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Real Money

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums
Only $49.95
14-Days Free
14-Days Free
RRGB $63.27 -0.46%
RT $4.41 0.92%
TAST $13.65 -2.70%
FB $119.13 1.10%
GOOG $709.83 1.20%


Chart of I:DJI
DOW 17,738.27 +77.56 0.44%
S&P 500 2,056.21 +5.58 0.27%
NASDAQ 4,729.1080 +12.0140 0.25%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs