Ruby Invests for Growth

Article Excerpt

RUBY TUESDAY, INC. $27.99 (New York symbol RI; SI Rating: Speculative) (865-379- 5700; www.rubytuesday.com; Shares outstanding: 54.3 million; Market cap: $1.5 billion) has changed its stock symbol to “RT” from “RI”. Revenue rose 11.6% in the three months ended March 6, to $377.9 million from $338.6 million. Earnings per share fell 2%, to $0.49 from $0.50. Excluding one-time items, per-share earnings rose 14%, to $0.57 from $0.50. Ruby Tuesday expects sales to slow somewhat in the current quarter, mainly due to unseasonably cold weather, weaker economic growth and discount pricing by almost all of its competitors. Earnings will likely be in the range of $0.46 to $0.48 a share. Ruby Tuesday operates in the competitive and fickle casual dining segment. But the company’s remodeling program, plus improvements to its menu, service and advertising should help its sales keep rising. Ruby Tuesday is still a buy. buy…