Ruby Tuesday's stock is surging in Thursday premarket trading as the restaurant operator reported a small-than-expected adjusted loss in its fiscal first quarter.
Ruby Tuesday Inc. reported net income of $2.6 million, or 4 cents per share, for the period ended Sept. 2. A year earlier it lost $22.2 million, or 37 cents per share. Revenue declined to $281.2 million from $289.7 million.
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Taking out certain items, the company's loss from continuing operations was a penny per share.
Analysts polled by FactSet expected a loss of 12 cents per share on revenue of $282.9 million.
Sales at company-owned Ruby Tuesday restaurants open at least a year climbed 1.1 percent as the number of guests improved. Sales at its 31 domestic Ruby Tuesday franchise restaurants open at least a year increased 6 percent.
For fiscal 2015, Ruby Tuesday now anticipates sales at restaurants open at least a year will rise 1 percent to 2 percent. Its prior projection was for the measurement to be flat to up 2 percent.
Shares of Ruby Tuesday gained 94 cents, or 15.9 percent, to $6.86 before the market open.