The Street Ratings has changed its mind about Ruby Tuesday, downgrading the Maryville-based restaurant chain’s stock from buy to hold.
Despite Ruby Tuesday’s revenue growth and “and largely solid financial position with reasonable debt level,” The Street Ratings cited “deteriorating net income and disappointing return on equity” as reasons for the downgrade.
In May, the digital financial media company upgraded Ruby Tuesday from hold to buy, saying its strengths outweighed its weaknesses.
Ruby Tuesday shares were down about 1.6 percent in early afternoon trading. The restaurant chain is expected to release its second quarter financial report on Wednesday . A conference call is schedueld for 4:30 p.m.
Last month, Ruby Tuesday founder Sandy Beall said he was stepping down as chairman, CEO and president. The company has started a search for a replacement.
Click here for The Street’s report on Ruby Tuesday.