Despite disappointing first quarter earnings, restaurant chain Ruby Tuesday stock was upgraded today by TheStreet Ratings.
TheStreet, a digital financial media company, upped the Maryville-based casual dining chain from hold to buy.
“The company’s strengths can be seen in multiple areas, such as its revenue growth, reasonable valuation levels and largely solid financial position with reasonable debt levels by most measures. We feel these strengths outweigh the fact that the company has had sub par growth in net income,” TheStreet Ratings said.
Ruby Tuesday’s first quarter profit plunged almost 72 percent to to $4.5 million, or 7 cents per share, compared to $16 million, or 25 cents per share, in the same period last year. Total revenue in the quarter rose 1.8 percent to $324.8 million, while same-restaurant sales fell 5 percent.
Analysts polled by FactSet expected earnings of 16 cents per share.
In trading late morning trading today, the company’s shares were down 13 cents, or about 1.7 percent, to $7.17.
Click here for TheStreet’s Ruby Tuesday report.