Ruby Tuesday says weak sales hurt 2nd-Q performance

Nation's Restaurant News,  Jan 22, 2007  

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MARYVILLE, TENN. -- Ruby Tuesday Inc., operator or franchisor of 926 namesake casual-dining restaurants, posted a 4.1-percent drop in second-quarter profit on revenues that rose 14.2 percent to $336.8 million.

For the three months ended Dec. 5, Ruby Tuesday's net earnings were $16.7 million, down from $17.4 million for the same period a year earlier. Per-share earnings were unchanged at 28 cents, because of fewer shares in the latest quarter.

Same-store sales for the quarter dipped 0.2 percent at corporate units but rose 4 percent at domestic franchised locations, the company said. However, from Dec. 6 through Jan. 8, same-store sales increased 2 percent at corporate outlets and 6.2 percent at franchised units.

In addition, Ruby Tuesday authorized the repurchase of an additional 5 million shares, which will be added to its current 5.2 million-share buyback plan.

The company projected per-share earnings of 52 cents to 54 cents for the current third quarter. In the prior third quarter, Ruby Tuesday earned 50 cents per share.

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