This Day On The Street
Continue to site right-arrow
ADVERTISEMENT
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
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

Ruby Tuesday Reports Third Quarter Fiscal 2012 Results

Stocks in this article: RT

Ruby Tuesday, Inc. (NYSE: RT) today reported financial results for the fiscal third quarter ended February 28, 2012.

Results for the third quarter of 2012 compared to the third quarter of 2011 include:

  • Same-restaurant sales decreased 5.0% at Company-owned Ruby Tuesday restaurants
  • Net income of $4.5 million, or $11.6 million excluding pre-tax impairment costs of $9.6 million in the third fiscal quarter related to the planned closure of 25-27 underperforming restaurants during the fourth quarter and $0.4 million of additional accounting gains realized in the third fiscal quarter from final purchase price adjustments associated with the fiscal 2011 franchise partner acquisitions. This compares to prior-year net income of $16.0 million, or $15.7 million excluding accounting gains realized from franchise partner acquisitions. We have included a reconciliation of these items and the related earnings per share impact on the Investor Relations page of the Ruby Tuesday website: www.rubytuesday.com.
  • Diluted earnings per share of $0.07, or $0.18 per share excluding the impairment costs of the 25 to 27 planned restaurant closings in the fourth quarter and franchise partner acquisition accounting gains, compared to diluted earnings per share of $0.25 for the prior year, or $0.24 excluding the franchise partner accounting gains
  • The Company announced plans to acquire Lime Fresh Mexican Grill for a purchase price of $24 million. The transaction, which represents the brand’s intellectual property rights and the assets of seven company-owned restaurants as well as the royalties from five franchised restaurants, is expected to close in the fourth fiscal quarter.

Sandy Beall, Founder, Chairman, and CEO, commented on the quarterly results, saying, “We believe the steps we have taken this quarter will enable us to positively impact our future sales and profits. While we were pleased with our earnings performance given our lower sales levels, we are clearly disappointed in our same-restaurant sales results for the third quarter. The promotional environment continues to be very competitive and over the past several quarters we have not competed well with the heavy television advertising levels of our peers. However, we feel good about our marketing strategy going forward which will include a higher percentage of our system being covered by television advertising communicating a strong value proposition to our guests, thus enabling us to grow our sales and traffic.

1 of 5

Select the service that is right for you!

COMPARE ALL SERVICES
Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

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
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

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

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, 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
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!

Markets

DOW 18,030.21 +6.04 0.03%
S&P 500 2,081.88 -0.29 -0.01%
NASDAQ 4,773.4720 +8.0480 0.17%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs