Restaurant chain Ruby Tuesday, Inc. (RT), Wednesday reported a swing to profit in the second quarter helped by lower expenses and cost saving initiatives, as well as absent a substantial charge recorded in the prior year quarter. Revenue for the quarter, however, declined hurt by lower same-store sales, but still came in above Street estimates. Looking ahead, the company provided its full year 2010 earnings forecast, indicated to come in line with current estimates. For the second quarter, Ruby Tuesday reported net income of $0.43 million or $0.01 per share, compared to a loss of $37.4 million or $0.73 per share in the same quarter a year ago.
On average, eight analysts' polled by Thomson Reuters expected a loss of $0.02 per share for the quarter. Analysts' estimate typically excludes one-time items.
Included in the second quarter fiscal 2009 loss were pretax charges of $56.1 million, or $0.71 per share after tax related to restructuring.
Total revenue decreased 5.6% to $273.46 million from $289.78 million in the prior-year quarter. Street analysts had a consensus revenue estimate of $267.37 million for the quarter.
Same-restaurant sales at company-operated restaurants declined 1.7% and those for domestic franchised restaurants decreased 4.7% in the second quarter, compared to the same quarter of the prior year.
Total operating costs and expenses decreased to $268.04 million from $349.78 million in the year-earlier quarter.
For the six-month period, Ruby Tuesday's net income was $6.58 million or $0.11 per share, compared to a loss of $37.13 million or $0.72 per share in the year-ago period. Sales decreased to $574.08 million from $613.78 million in the prior-year period.
Second quarter same-restaurant guest traffic at company-owned restaurants increased year-over-year, continuing the positive momentum of the prior two quarters.
Looking ahead to fiscal year 2010, the company said it expects earnings in the range of $0.50 to $0.60 per share. The street currently expects earnings of $0.57 per share for the year.
The company also said it would not open any company-owned Ruby Tuesday restaurants, and intends to close 12 to 13 in the second half of fiscal 2010. Same-restaurant sales for the year for company-owned restaurants is anticipated to be in the range of down 1% to 3%.
RT closed Wednesday's regular trading at $7.67, up $0.24 or 3.23%, on a volume of 1.09 million shares. In after-hours, the stock further gained $0.23 or 3.10%, trading at $7.66.
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June 05, 2026 16:18 ET A busy week for economic news flow saw a slew of reports being released that reflected the trends in the U.S. labor market. In Europe, economic growth and inflation data gained attention as the European Central Bank and Bank of England head for policy session later in the month. In Asia, the monetary policy session of the Indian central bank was in focus as the country, a major oil importer, reels under the pressures of a weaker rupee and rising inflation.