Why Ruby Tuesday (RT) Stock Is Plunging Today

NEW YORK (TheStreet) -- Ruby Tuesday (RT) plunged Wednesday after the restaurant chain reported fourth-quarter results that came up short of analysts' expectations.

The company reported earnings of 3 cents a share, excluding items, down from 12 cents a share in the same period one year earlier. Revenue declined year over year to $307.3 million from $316.1 million. Analysts had expected earnings of 9 cents a share on revenue of $303.8 million.

Ruby Tuesday also said it expects first-quarter same-restaurant sales in the range of down 1% to up 1%. For the full fiscal year 2015, the company expects a range of flat to up 2%.

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The stock was down 15.47% to $6.01 at 12:47 p.m. More than 1.4 million shares had changed hands, compared to the average volume of 477,878.

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Separately, TheStreet Ratings team rates RUBY TUESDAY INC as a Sell with a ratings score of D+. TheStreet Ratings Team has this to say about their recommendation:

"We rate RUBY TUESDAY INC (RT) a SELL. This is driven by several weaknesses, which we believe should have a greater impact than any strengths, and could make it more difficult for investors to achieve positive results compared to most of the stocks we cover. The company's weaknesses can be seen in multiple areas, such as its feeble growth in its earnings per share, deteriorating net income, disappointing return on equity, poor profit margins and generally disappointing historical performance in the stock itself."

You can view the full analysis from the report here: RT Ratings Report

RT ChartRT data by YCharts

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Editor's Note: Any reference to TheStreet Ratings and its underlying recommendation does not reflect the opinion of TheStreet, Inc. or any of its contributors including Jim Cramer or Stephanie Link.

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