Ruby Tuesday Earnings Jump 23 Percent

The Maryville, Tennessee, company posted net income of $31.0 million, or 46 cents per share, in its fiscal fourth quarter, compared with $25.3 million, or 39 cents per share, a year ago.

Revenue rose to $275.5 million from $246.9 million in the period ended June 1 as same-store sales at company-owned restaurants increased 1.3 percent.

Wall Street analysts were expecting earnings of between 46 cents and 47 cents per share, with an average view of 46 cents, according to Reuters Estimates.

During the quarter, Ruby Tuesday said it rolled out its spring menu, which included some lower prices, as well as the second part of a healthy eating initiative that gives nutritional information for all menu items.

Looking ahead to fiscal 2005, Ruby Tuesday said its goal was for earnings-per-share growth of 16 percent to 17 percent, based on same-store sales growth of about 1 percent at company-owned and domestic franchise restaurants.

It sees first-quarter earnings per share growth of 22 percent and expects same-store sales will be flat. Analysts expect the company to post a per-share profit of 44 cents for the first quarter and $1.91 for fiscal 2005, according to Reuters Estimates.

Ruby Tuesday also plans to open 50 to 55 new restaurants in fiscal 2005 and said its franchisees would open about 35 to 40 outlets during the same period.

Separately, the company said its board of directors declared a semi-annual dividend of 2-1/4 cents per share payable on August 9.

Shares of Ruby Tuesday fell 17 cents or 0.6 percent to close at $27.65 on the New York Stock Exchange.

Earnings were released after the closing bell.