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Ruby Tuesday cuts upper end of FY13 adjusted profit forecast
January 9, 2013 / 10:37 PM / 5 years ago

Ruby Tuesday cuts upper end of FY13 adjusted profit forecast

(Reuters) - Casual dining chain Ruby Tuesday Inc (RT.N) lowered the upper end of its full-year adjusted profit forecast after posting a wider-than-expected second-quarter loss as it struggles in a volatile consumer spending environment.

The company’s shares fell nearly 9 percent to $7.60 in trading after the bell.

Ruby Tuesday, which owns and operates Lime Fresh Mexican, Marlin & Ray’s and its namesake casual dining restaurants, cut the upper end of it full-year adjusted profit forecast by 4 cents to 30 cents. It now expects to earn 24-30 cents per share for the year ending June.

Rival Darden Restaurants Inc (DRI.N) last month reported a steep fall in business at its Olive Garden, Red Lobster and LongHorn Steakhouse chains, and lowered its financial expectations for the year.

Ruby Tuesday reported a second-quarter loss of $15.1 million, or 24 cents per share, compared with a loss of $2.0 million, or 3 cents per share, a year earlier.

Excluding items, loss was 7 cents per share for the quarter ended December 4.

Revenue fell 1 percent to $304.2 million.

Analysts on average expected a loss of 6 cents per share, on revenue of $305.0 million, according to Thomson Reuters I/B/E/S.

The second-quarter results included a pre-tax charge of $16.9 million mainly related to the company’s decision to close and exit 13 Marlin & Ray’s and Wok Hay concepts and shutter two company-developed Lime Fresh restaurants. Ruby Tuesday is also seeking a buyer for its licensed Truffles Grill concept.

Shares of the company closed at $8.31 on the New York Stock Exchange on Wednesday.

Reporting by Aditi Shrivastava in Bangalore; Editing by Sriraj Kalluvila

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