NEW YORK (TheStreet) -- Ruby Tuesday (RT) has plummeted 17.8% to $6.21, as of 10:10 a.m. New York time, after reporting disappointing first-quarter figures after the bell on Wednesday. So far, 1.9 million shares have changed hands, exceeding its three-month average daily trading volume of 345,820 shares.
For the first-quarter ended Sept. 3, the casual-dining chain reported same-store sales fell 11.4% at company-owned restaurants and 8.4% at franchises year-on-year. Net operating loss was $21.9 million, compared to a net income of $3.1 million in the year-ago quarter.
"The first quarter was challenging as the overall economy failed to realize any significant improvements," said President and CEO JJ Buettgen in a statement. "Looking ahead to the remainder of fiscal 2014, our top priorities are driving increased guest counts and profitable sales growth."
The company forecasts single-digit decreases for same-store sales in the second quarter, with an improvement likely in the third and fourth quarter of FY2014.
TheStreet Ratings team rates Ruby Tuesday Inc as a Hold with a ratings score of C-. TheStreet Ratings Team has this to say about their recommendation:
"We rate Ruby Tuesday Inc (RT) a HOLD. 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 increase in stock price during the past year. However, as a counter to these strengths, we also find weaknesses including deteriorating net income, disappointing return on equity and poor profit margins."