Ruby Tuesday Posts Profit, Lifts FY Guidance; Stock Jumps - Update

(RTTNews) - Restaurant operator Ruby Tuesday Inc (RT), said Wednesday it returned to a profit for the first quarter, helped by lower expenses that offset a decline in revenue.

The company lifted the full-year guidance for some key metrics and Ruby Tuesday shares surged 18 percent in after-hours trade on the New YorK Stock Exchange.

Ruby Tuesday, based in Maryville, Tennessee, posted first-quarter net earnings of $2.6 million or $0.04 per share compared with a loss of $22.2 million or $0.37 per share last year.

Excluding items, adjusted loss for the quarter was $0.01 per share compared with a loss of $0.34 per share a year ago. On average, six analysts polled by Thomson Reuters estimated a loss of $0.12 per share for the quarter. Analysts' estimates typically exclude special items.

Revenue for the quarter were lower at $281.2 million compared with $289.7 million in the prior year, reflecting the closure of 38 under-performing restaurants. Analysts estimated revenue of $283.2 million for the quarter.

Same restaurant sales for the quarter were up 1.1% at company-owned restaurants.

Results were helped by operating expenses that decreased to $275.8 million from $309.5 million last year.

Looking ahead, the company expects same-restaurant sales for the second quarter and the full year to be up 1 to 2 percent. The company said the guidance for the year is revised from prior guidance of flat to up 2 percent.

The company now expects full year restaurant-level operating margin of 16 to 17 percent of sales, up from prior guidance of 15 to 16 percent.

The company's stock closed Wednesday at $5.92, up $0.12 or 2.07%, on the NYSE. In after hours, the stock surged $1.09 or 18.41% at $7.01.