Ruby Tuesday (RT) To Report Q1 Earnings: What's In Store?
Zacks Investment Research | Oct 03, 2017 10:39PM ET
Casual dining restaurant chain, Ruby Tuesday, Inc. (NYSE:RT) is expected to report first-quarter fiscal 2018 figures on Oct 5, after market close.
Let’s see how things are shaping up for this announcement.
Factors Likely to Influence Q1 Results
Ruby Tuesday returned to profit in the last reported quarter, after incurring losses in the last three trailing quarters. In fact, efforts to improve overall guest experience, trigger comps growth and deliver system profitability is likely to aid the company in sustaining the performance in the fiscal first quarter as well.
To boost guest experience, the company launched its “fresh start” initiatives like Fresh New Menu, Fresh New Garden Bar and Fresh Experience. These initiatives are expected to have gained further momentum in the to-be-reported quarter and more favorably impact the quarter’s traffic and comps.
Particularly, Ruby Tuesday anticipates its Garden Bar initiative to boost traffic greatly, given its uniqueness that makes it a key competitive differentiator for the brand. Also, its Fresh Experience is expected to aid in enhancing service and overall guest experience.
Meanwhile, increased focus on digital, social, and mobile marketing is likely to boost the quarter’s comps. Efforts to simplify menu and reenergize it’s to-go and catering programs may further drive comps in the to-be-reported quarter.
Additionally, various other strategic initiatives undertaken by the company is expected to bolster overall profitability along with sales.
However, higher labor costs and other expenses related to initiatives are expected to take a toll on the company’s profits in the to-be-reported quarter as well. In the meantime, guest traffic is threatened by the persistent softness in the casual dining industry and attractive discount offered by its competitors.
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