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What's in Store for Ruby Tuesday (RT) this Earnings Season?
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Tennessee-based casual dining restaurant chain, Ruby Tuesday, Inc. , is set to report fiscal third-quarter 2017 results on Apr 6, after the market closes. Let’s see how things are shaping up for this announcement.
Factors Likely to Influence this Quarter
Ruby Tuesday is aggressively pursuing brand transformation initiatives. From new menu items to limited time offers, executing marketing campaigns and re-imaging its restaurants, the company is leaving no stone unturned to satisfy customers and return to profits.
The company’s goal is to accelerate the traffic driving strategies of its “fresh start” initiatives that have been tested and are believed to positively impact its restaurant level performance. The initiatives include “Fresh New Menu”, “Fresh New Garden Bar”, and “Fresh Experience” that are expected to have impacted traffic and comps favorably in the to-be-reported quarter.
As part of this initiative, Ruby Tuesday rolled out its fresh new menu in Nov 2016 and launched its enhanced Garden Bar system-wide in January this year. The company expects its Garden Bar initiative to boost traffic greatly, given its uniqueness which makes it a key competitive differentiator for the brand. Moreover, its Fresh Experience enables the company to remain focused on enhancing its service and overall guest experience, including improvement in the taste of its meal delivery, where it currently lags its casual dining peers.
However, Ruby Tuesday has incurred losses in four out of the last six quarters. In addition, higher labor costs and other expenses related to initiatives are expected to take a toll on the company’s profits in the quarter. Additionally, guest traffic is threatened by the persistent softness in the casual dining industry and attractive discount offered by its competitors.
Stocks to Consider
Here are a few stocks in the Retail-Restaurants industry that are likely to beat earnings estimates:
Panera Bread Company has an Earnings ESP of +1.67% and carries a Zacks Rank #3 (Hold). You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
McDonald's Corp. (MCD - Free Report) , with an Earnings ESP of +3.01% and a Zacks Rank #3.
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What's in Store for Ruby Tuesday (RT) this Earnings Season?
Tennessee-based casual dining restaurant chain, Ruby Tuesday, Inc. , is set to report fiscal third-quarter 2017 results on Apr 6, after the market closes. Let’s see how things are shaping up for this announcement.
Factors Likely to Influence this Quarter
Ruby Tuesday is aggressively pursuing brand transformation initiatives. From new menu items to limited time offers, executing marketing campaigns and re-imaging its restaurants, the company is leaving no stone unturned to satisfy customers and return to profits.
The company’s goal is to accelerate the traffic driving strategies of its “fresh start” initiatives that have been tested and are believed to positively impact its restaurant level performance. The initiatives include “Fresh New Menu”, “Fresh New Garden Bar”, and “Fresh Experience” that are expected to have impacted traffic and comps favorably in the to-be-reported quarter.
As part of this initiative, Ruby Tuesday rolled out its fresh new menu in Nov 2016 and launched its enhanced Garden Bar system-wide in January this year. The company expects its Garden Bar initiative to boost traffic greatly, given its uniqueness which makes it a key competitive differentiator for the brand. Moreover, its Fresh Experience enables the company to remain focused on enhancing its service and overall guest experience, including improvement in the taste of its meal delivery, where it currently lags its casual dining peers.
However, Ruby Tuesday has incurred losses in four out of the last six quarters. In addition, higher labor costs and other expenses related to initiatives are expected to take a toll on the company’s profits in the quarter. Additionally, guest traffic is threatened by the persistent softness in the casual dining industry and attractive discount offered by its competitors.
Stocks to Consider
Here are a few stocks in the Retail-Restaurants industry that are likely to beat earnings estimates:
Panera Bread Company has an Earnings ESP of +1.67% and carries a Zacks Rank #3 (Hold). You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
The Habit Restaurants, Inc. , with an Earnings ESP of +12.5% and a Zacks Rank #3. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
McDonald's Corp. (MCD - Free Report) , with an Earnings ESP of +3.01% and a Zacks Rank #3.
Zacks’ Best Private Investment Ideas
In addition to the recommendations that are available to the public on our website, how would you like to follow all Zacks' private buys and sells in real time?
Our experts cover all kinds of trades… from value to momentum . . . from stocks under $10 to ETF and option moves . . . from stocks that corporate insiders are buying up to companies that are about to report positive earnings surprises. You can even look inside exclusive portfolios that are normally closed to new investors. Starting today, for the next month, you can have unrestricted access. Click here for Zacks' private trades >>