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Bankruptcy Watch: 14 Risky Restaurant Stocks

Ruby Tuesday (RT)

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Altman Z-Score, Trailing 12 Months: 2.57

Altman Z-Score, Last Fiscal Year: 2.57

Ruby Tuesday (RT)

Ruby Tuesday's Z-Score has held steady at 2.57 for several years now, indicating the casual restaurant chain remains on stable-yet-shaky ground, unable to move the needle higher.

Casual chains like Ruby Tuesday, along with Cheesecake Factory (CAKE) and Cracker Barrel Old Country Store (CBRL), stand to benefit as business travel picks up following the so-called Great Recession, Keybanc analysts recently noted. That means Ruby Tuesday could be poised to improve its outlook.

Even so, in its recently quarterly report Ruby Tuesday missed profit expectations and offered a weaker-than-expected outlook. The company blamed tough winter weather for the shortfall, saying it was hit harder than most other chains because the majority of its locations are in the Eastern region of the United States, where snow fell at record levels in some areas.

The Maryville, Tenn.-based company reported earnings of $16 million, or 25 cents per share, for the three months ended March 1 on revenue of $319.1 million. Same-store sales -- or sales at stores open at least one year, a closely watched metric in the restaurant industry -- were down 1.2% in the quarter. That performance was down from last year's net income of $17.8 million, or 28 cents per share.

Ruby Tuesday's full-year outlook was markedly below analysts' consensus view. The company forecast a profit ranging from 74 to 82 cents per share, compared with the average analysts' estimate of 90 cents per share.

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