Ruby Tuesday (RT) is an international, full-service restaurant operator that currently owns about 709 stores and franchises another 77 stores. The company sports a market capitalization of $465 million at the current price of $7.53 per share. Ruby Tuesday has struggled mightily in the past five years to slow negative growth in revenue and profits and as a result, shares have fallen from their all-time highs over $30 to trade just under the price of one of the company's "casual American dining" entrees. With shares trading at such depressed valuations, we'll take a look at the business and see if the shares are fairly valued or not.
First, we'll take a look at some operating metrics...