Ruby’s On The Right Track

Article Excerpt

RUBY TUESDAY, INC. $15.92 (New York symbol RT; SI Rating: Speculative) (865-379- 5700; www.rubytuesday.com; Shares outstanding: 51.7 million; Market cap: $823.1 million) reports 2.4% higher revenues in the three months ended September 4, 2007, to $346.8 million from $338.7 million a year earlier. However, excluding one-time items, earnings per share fell 29.7%, to $0.26 from $0.37. Higher gasoline prices and interest rates limited consumer spending in the latest quarter. Ruby Tuesday also suffered due to lower-priced offerings from competitors. The company is still re-positioning itself as offering higher quality food but at higher prices. However, we think Ruby Tuesday will succeed in improving its menu, service and advertising to attract customers. Ruby Tuesday is still a buy. buy…