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What: Shares of Ruby Tuesday, (NYSE:RT) were shining today, climbing as much as 16% and finishing up 12%, after beating estimates in its third-quarter report.
So what: The restaurant chain posted a per-share loss of $0.07 against estimates of an $0.08-loss, while revenue dipped 3.8%, to $295.6 million; but that easily beat expectations of $284.2 million. Same-store sales fell 1.9% at company-owned restaurants as Ruby Tuesday is in the midst of executing its turnaround strategy, closing down underperforming locations, and attempting to revamp the brand. CEO JJ Buettgen noted sequential improvement in same-store sales in the quarter, and said the company made "solid progress" on its brand transformation.
Now what: The results show a company still struggling, but Ruby Tuesday's forecast of flat same-store sales seems encouraging after recent declines in that category. Management also said it expects to close six to nine more locations in the fourth quarter, bringing its total for the second half of the year to 30 to 33. If same-store sales begin heading in the right direction and the company can move past its store closings, I'd expect shares to move even higher.
Jeremy Bowman has no position in any stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.