RT  Ruby Tuesday Inc.

Exchange

NYSE

Sector

Consumer Services

Industry

Restaurants

Market Cap.

574.9M

Competitive Industry over the past 10 years

RT is likely operating in an industry with medium to low barriers to entry. This may mean that RT doesn't have a characteristic that's hard to replicate, such as exclusive distribution, branding or the ability to keep costs low. If Gross Margins are at least satisfactory, it's likely that RT invests heavily in R&D and Sales, General & Administrative expenses.

Only $5.17 of every $100 of Revenue have been profit, on average over the past 10 years.
Figures in USD. Fiscal year ends in May
2003200420052006200720082009201020112012
Net Income 88.48M 110.01M 102.30M 100.98M 91.67M 26.38M -17.92M 45.34M 46.88M -188,000.00
divided by
Revenue 913.78M 1.04B 1.11B 1.31B 1.41B 1.36B 1.25B 1.19B 1.27B 1.33B
Net Profit Margin 9.68% 10.56% 9.21% 7.73% 6.50% 1.94% -1.44% 3.80% 3.71% -0.01%

Inconsistent Gross Profit Margins over the past 10 years

RT has good gross profit margins, however inconsistency of these margins is a cause for concern. Look at reasons for this inconsistency to determine the likelihood of future sustainability.

$36.52 of every $100 worth of sales have been Gross Profit, on average over the past 10 years.
Figures in USD. Fiscal year ends in May
2003200420052006200720082009201020112012
Gross Profit 523.24M 607.05M 295.79M 334.11M 349.47M 267.12M 222.11M 212.51M 220.65M 1.33B
divided by
Revenue 913.78M 1.04B 1.11B 1.31B 1.41B 1.36B 1.25B 1.19B 1.27B 1.33B
Gross Margin 57.26% 58.29% 26.64% 25.58% 24.78% 19.64% 17.79% 17.79% 17.44% 100.00%

High Capital Intensity over the past 10 years

RT spends large amounts of capital buying new equipment or investing in new facilities to stay competitive. Over the long term, those costs may have to be fuelled by debt. Look at the growth of Shareholders' Equity to see if this strategy is having a positive or negative impact.

164.52% of Profits are being spent on Capital Expenditures, like Property, Plant, & Equipment, required to run the business.
Figures in USD. Fiscal year ends in May
2003200420052006200720082009201020112012
Capital Expenditure 153.36M 151.49M 162.37M 171.64M 125.83M 116.92M 17.19M 17.67M 26.68M 37.97M
divided by
Net Income 88.48M 110.01M 102.30M 100.98M 91.67M 26.38M -17.92M 45.34M 46.88M -188,000.00
Capital Expenditure Ratio 173.32% 137.70% 158.72% 169.98% 137.26% 443.26% -95.91% 38.97% 56.92% -20,194.68%