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NEW YORK (TheStreet) -- Ruby Tuesday (RT)  stock is down 2.72% to $4.65 on heavy trading volume on Friday afternoon after the company reported a loss for the fiscal 2016 second quarter and lower-than-expected revenue results. 

Though the restaurant chain reported an earnings loss, it was narrower than analysts expected. Ruby Tuesday posted a loss of 4 cents per share, compared to analysts' forecasts for a loss of 7 cents per share.

Additionally, revenue declined by 0.6% year-over-year to $261 million, below analysts' projections for revenue of $262.78 million.

Same-store restaurant sales at Ruby Tuesday climbed by 0.8% during the most recent quarter, which is the company's second consecutive quarter of growth.

The company will continue enhancing its menu and testing a new remodeling program to improve customer retention and traffic, Ruby Tuesday CEO JJ Buettgen said in a statement. 

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So far today, 1.19 million shares of Ruby Tuesday have traded, well above the company's 30-day average of about 342,000 shares.

Separately, recently, TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this articles's author. TheStreet Ratings has this to say about the recommendation:

We rate RUBY TUESDAY INC as a Hold with a ratings score of C-. The primary factors that have impacted our rating are mixed - some indicating strength, some showing weaknesses, with little evidence to justify the expectation of either a positive or negative performance for this stock relative to most other stocks. The company's strengths can be seen in multiple areas, such as its largely solid financial position with reasonable debt levels by most measures and notable return on equity. However, as a counter to these strengths, we also find weaknesses including unimpressive growth in net income, poor profit margins and weak operating cash flow.

Highlights from the analysis by TheStreet Ratings Team goes as follows:

  • RUBY TUESDAY INC has experienced a steep decline in earnings per share in the most recent quarter in comparison to its performance from the same quarter a year ago. This company has reported somewhat volatile earnings recently. But, we feel it is poised for EPS growth in the coming year. During the past fiscal year, RUBY TUESDAY INC continued to lose money by earning -$0.05 versus -$1.07 in the prior year. This year, the market expects an improvement in earnings ($0.09 versus -$0.05).
  • The current debt-to-equity ratio, 0.50, is low and is below the industry average, implying that there has been successful management of debt levels. Despite the fact that RT's debt-to-equity ratio is low, the quick ratio, which is currently 0.67, displays a potential problem in covering short-term cash needs.
  • RT, with its decline in revenue, slightly underperformed the industry average of 1.1%. Since the same quarter one year prior, revenues slightly dropped by 0.6%. Weakness in the company's revenue seems to have hurt the bottom line, decreasing earnings per share.
  • The gross profit margin for RUBY TUESDAY INC is rather low; currently it is at 16.35%. It has decreased from the same quarter the previous year. Along with this, the net profit margin of -1.50% is significantly below that of the industry average.
  • Net operating cash flow has significantly decreased to -$2.47 million or 118.88% when compared to the same quarter last year. In addition, when comparing to the industry average, the firm's growth rate is much lower.
  • You can view the full analysis from the report here: RT