TN-based casual dining foodservice retailer, Ruby Tuesday, Inc. (NYSE:RT) is scheduled to report fourth-quarter and fiscal 2016 financial numbers on Aug 11, after market closes.
Let’s see how things are shaping up for this announcement.
Factors Likely to Influence this Quarter
For fiscal 2016, the company expects adjusted earnings in the range of 5 cents to 8 cents per share. Meanwhile, comps are anticipated to be down roughly 1% in fiscal 2016. Also, the company projects annual restaurant-level margins in the range of 16.7% to 17%.
Notably, Ruby Tuesday has incurred losses in four out of the last six quarters. Moreover, higher labor costs and other expenses are expected to take a toll on Ruby Tuesday’s profits in the to-be-reported quarter. Also, traffic may continue to decline as competitors come up with attractive discounts.
Nonetheless, Ruby Tuesday is aggressively pursuing brand transformation initiatives. Menu innovation, limited time offers, increased marketing efforts and digital initiatives coupled with re-imaging of restaurants should draw customers and somewhat help the company to return to profits.
Stocks to Consider
Here are some companies to consider as our model shows they have the right combination of elements to post an earnings beat this quarter:
The Children's Place, Inc. (NASDAQ:PLCE) has an earnings ESP of +25.00% and a Zacks Rank #2 (Buy).
Lowe's Companies, Inc. (NYSE:LOW) has an earnings ESP of +2.84% and a Zacks Rank #2.
Macy's, Inc. (NYSE:M) has an earnings ESP of +25.00% and a Zacks Rank #3 (Hold).
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