UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 10-Q
X QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15 (d) OF THE
SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended NOVEMBER 30, 1996
OR
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15 (d) OF THE
SECURITIES EXCHANGE ACT OF 1934
For the transition period from to
Commission file number 1-12454
RUBY TUESDAY, INC.
(Exact name of registrant as specified in charter)
GEORGIA 63-0475239
(State of incorporation or (I.R.S. Employer identifi-
organization) cation no.)
4721 Morrison Drive
P.O. Box 160266
Mobile, AL 36625
(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code: (334)344-3000
Indicate by check mark whether the registrant (1) has filed
all reports required to be filed by Section 13 or 15 (d) of the
Securities Exchange Act of 1934 during the preceding 12 months
(or for such shorter period that the registrant was required to
file such reports), and (2) has been subject to such filing
requirements for the past 90 days. Yes X . No .
17,793,530
(Number of shares of $0.01 par value common stock outstanding
as of January 10, 1997)
Exhibit Index appears on page 13
<PAGE>
INDEX
PAGE
NUMBER
PART I - FINANCIAL INFORMATION
ITEM 1. FINANCIAL STATEMENTS
CONSOLIDATED BALANCE SHEETS AS OF
NOVEMBER 30, 1996 AND JUNE 1, 1996.............. 3
CONSOLIDATED STATEMENTS OF INCOME FOR
THE THIRTEEN AND TWENTY-SIX WEEKS ENDED
NOVEMBER 30, 1996 AND DECEMBER 2, 1995.......... 4
CONSOLIDATED STATEMENTS OF CASH FLOWS
FOR THE TWENTY-SIX WEEKS ENDED
NOVEMBER 30, 1996 AND DECEMBER 2, 1995.......... 5
NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS...................................... 6-7
ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS
OF FINANCIAL CONDITION AND RESULTS
OF OPERATIONS........................... 7-11
PART II - OTHER INFORMATION
ITEM 1. LEGAL PROCEEDINGS....................... 11
ITEM 2. CHANGES IN SECURITIES................... NONE
ITEM 3. DEFAULTS UPON SENIOR SECURITIES......... NONE
ITEM 4. SUBMISSION OF MATTERS TO A VOTE OF
SECURITY HOLDERS........................ 11-12
ITEM 5. OTHER INFORMATION....................... NONE
ITEM 6. EXHIBITS AND REPORTS ON FORM 8-K........ 12
SIGNATURES...................................... 12
</PAGE>
<PAGE>
<TABLE>
PART I - FINANCIAL INFORMATION
ITEM 1
RUBY TUESDAY, INC.
CONSOLIDATED BALANCE SHEETS
(IN THOUSANDS EXCEPT PER-SHARE DATA)
<CAPTION>
November 30, June 1,
1996 1996
(UNAUDITED) (AUDITED)
<S> <C> <C>
CURRENT ASSETS:
Cash and short-term investments.................. $ 9,255 $ 7,139
Receivables - trade and other.................... 3,541 2,040
Inventories...................................... 9,897 8,681
Prepaid expenses................................. 9,034 12,410
Deferred income tax benefits..................... 3,782 2,988
Total current assets........................... 35,509 33,258
PROPERTY AND EQUIPMENT - at cost....................... 482,664 443,475
Less accumulated depreciation and amortization... (147,205) (129,937)
335,459 313,538
COSTS IN EXCESS OF NET ASSETS ACQUIRED................. 20,727 21,058
OTHER ASSETS........................................... 14,564 13,262
TOTAL ASSETS................................. $406,259 $381,116
LIABILITIES & SHAREHOLDERS' EQUITY
CURRENT LIABILITIES:
Accounts payable................................. $ 30,366 $ 26,386
Short-term borrowings............................ 13,950 6,001
Accrued liabilities:
Taxes, other than income taxes................. 10,251 10,602
Payroll and related costs...................... 7,601 6,917
Insurance...................................... 8,490 7,478
Rent and other................................. 11,478 9,112
Current portion of notes and mortgages payable... 99 95
Total current liabilities.................... 82,235 66,591
NOTES AND MORTGAGES PAYABLE............................ 71,057 76,108
DEFERRED INCOME TAXES.................................. 9,997 8,232
OTHER DEFERRED LIABILITIES............................. 33,390 32,842
SHAREHOLDERS' EQUITY:
Common stock, $0.01 par value;(authorized 50,000
shares; issued 17,790 @ 11/30/96; 17,598 @ 6/01/96) 178 176
Capital in excess of par value................... 4,367 1,762
Retained earnings................................ 207,789 198,354
212,334 200,292
Less common stock held by deferred compensation
plan - at cost(124 shares @ 11/30/96; 134 shares
@ 6/01/96)...................................... (2,754) (2,949)
209,580 197,343
TOTAL LIABILITIES & SHAREHOLDERS' EQUITY..... $406,259 $381,116
The accompanying notes are an integral part of the consolidated financial statements
</TABLE>
</PAGE>
<PAGE>
<TABLE>
RUBY TUESDAY, INC.
CONSOLIDATED STATEMENTS OF INCOME
(IN THOUSANDS EXCEPT PER-SHARE DATA)
(UNAUDITED)
<CAPTION>
Thirteen Weeks Ended Twenty-Six Weeks Ended
Nov. 30, 1996 Dec. 2, 1995 Nov. 30, 1996 Dec. 2, 1995
<S> <C> <C> <C> <C>
Revenues............................. $156,318 $152,001 $313,600 $297,965
Operating costs and expenses:
Cost of merchandise................ 42,940 42,615 85,265 82,031
Payroll and related costs.......... 51,226 52,938 103,060 101,893
Other, net......................... 34,196 33,380 69,058 65,525
Selling, general and administrative 11,255 10,288 20,738 20,861
Depreciation....................... 9,558 8,753 18,685 16,797
Interest expense, net.............. 1,027 902 2,169 1,522
150,202 148,876 298,975 288,629
Income from continuing
operations before income taxes...... 6,116 3,125 14,625 9,336
Provision for income taxes........... 2,170 1,038 5,190 3,038
Income from continuing operations.... 3,946 2,087 9,435 6,298
Income from discontinued operations,
net of applicable income taxes..... 4,647 9,892
Net income.......................... $ 3,946 $ 6,734 $ 9,435 $ 16,190
Earnings per common and common
equivalent share:
Continuing operations.............. $ 0.22 $ 0.13 $ 0.53 $ 0.37
Discontinued operations............ 0.26 0.55
Earnings per common and common
equivalent share.................. $ 0.22 $ 0.39 $ 0.53 $ 0.92
Weighted average common and common
equivalent shares................. 17,853 17,641 17,897 17,708
The accompanying notes are an integral part of the consolidated financial statements
</TABLE>
</PAGE>
<PAGE>
<TABLE>
RUBY TUESDAY, INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS
(IN THOUSANDS)
(UNAUDITED)
<CAPTION>
Twenty-Six Weeks Ended
November 30, December 2,
1996 1995
<S> <C> <C>
Operating Activities:
Income from continuing operations................. $ 9,435 $ 6,298
Adjustments to reconcile net income to net cash
provided by operating activities:
Depreciation.................................... 18,685 16,797
Amortization of intangibles..................... 367 333
Deferred income taxes........................... 970 1,107
Loss on disposition of assets................... 620 3,404
Other, net...................................... (78)
Changes in operating assets and liabilities:
Increase in receivables...................... (1,501) (698)
Increase in inventories...................... (1,216) (1,384)
(Increase)/decrease in prepaid and other
assets...................................... 1,620 (615)
Increase/(decrease) in accounts payable,
accrued and other liabilities............... 7,996 (1,370)
Increase in income taxes payable.............. 1,698 550
Cash provided by continuing operations............ 38,674 24,344
Cash provided by discontinued operations.......... 16,099
Net cash provided by operating activities....... 38,674 40,443
Investing Activities:
Purchases of property and equipment............... (41,054) (76,626)
Proceeds from disposal of assets.................. 54 386
Other, net........................................ (1,262) (972)
Discontinued operations investing activities, net. (9,463)
Net cash used by investing activities........... (42,262) (86,675)
Financing Activities:
Proceeds from long-term debt...................... 37,180
Net change in short-term borrowings............... 7,949 5,082
Principal payments on long-term debt and capital
leases.......................................... (5,047) (43)
Proceeds from issuance of stock, including
treasury stock.................................. 2,607 1,456
Change in RTI stock held by Deferred
Compensation Plan................................ 195
Stock repurchases................................. (353)
Dividends paid.................................... (6,202)
Discontinued operations financing activities, net. 12,772
Net cash provided by financing activities....... 5,704 49,892
Increase in cash and short-term investments....... 2,116 3,660
Cash and short-term investments:
Beginning of year............................... 7,139 5,957
End of quarter.................................. $ 9,255 $ 9,617
The accompanying notes are an integral part of the consolidated financial
statements.
</TABLE>
</PAGE>
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)
NOTE A - BASIS OF PRESENTATION
The accompanying unaudited consolidated financial statements have been prepared
in accordance with the instructions to Form 10-Q and do not include all of the
information and footnotes required by generally accepted accounting principles
for complete financial statements. The statements should be read in conjunction
with the notes to the consolidated financial statements included in Ruby Tuesday
Inc.'s annual report for the fiscal year ended June 1, 1996. The accompanying
unaudited consolidated financial statements reflect all adjustments for normal
recurring accruals. These adjustments are necessary, in the opinion of
management, for a fair presentation of the financial position, the results of
operations and the cash flows for the interim periods presented. The results of
operations for the interim periods reported herein are not necessarily
indicative of results to be expected for the full year.
NOTE B - DISCONTINUED OPERATIONS
On March 7, 1996, the shareholders of Morrison Restaurants Inc. ("Morrison")
approved the distribution of its family dining restaurant business (Morrison
Fresh Cooking, Inc. ("MFCI")) and its health care food and nutrition services
business (Morrison Health Care, Inc. ("MHCI")) to its shareholders effective
March 9, 1996. As of the distribution date, the Company has no ownership
interest in either MFCI or MHCI, except for stock held in connection with
employee benefit plans. In accordance with Accounting Principles Board Opinion
No. 30, the financial results of these two businesses, together referred to as
the Morrison Group, are reported as discontinued operations.
NOTE C - ASSET IMPAIRMENT/RESTRUCTURE CHARGES
In the third quarter of fiscal 1996, the Board of Directors of the Company
approved the closing of ten Ruby Tuesdays, four Mozzarella's and two Tia's
restaurants based upon management's review of negative cash flow and operating
loss units and other considerations. A charge of $13.4 million was recorded at
that time, consisting of a $10.0 million loss on impairment of assets (net of an
assumed salvage value of $0.9 million), and $3.4 million for the settlement of
the related lease obligations. As of November 30, 1996, 13 of these units have
been closed (ten Ruby Tuesdays and three Mozzarella's). An additional unit is
scheduled to close early in the third quarter. During second quarter of fiscal
1997, management decided to keep the remaining two restaurants open. The
decision to keep two of the units open was made because of operational
improvements at these units. The previously recognized reserve established for
the settlement of the leases for these two units ($0.4 million) plus $0.3
million recorded in second quarter was used to offset additional lease expense
of $0.7 million management estimates it will incur to settle leases related to
the other units included in the restructure. This additional expense results
primarily from expected subleases not being completed in the estimated time.
During the quarter, the Company paid approximately $0.3 million in lease
obligations and settlement costs relating to these units which have been closed.
As of November 30, 1996, $3.0 million of the lease settlement reserve remains.
At November 30, 1996, the remaining recorded salvage value was $0.1 million.
ITEM 2
MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION
AND RESULTS OF OPERATIONS
General:
The Company reported net income from continuing operations of $3.9 million for
the thirteen weeks ended November 30, 1996 compared to $2.1 million for the
corresponding period of the prior year. Year-to-date income from continuing
operations was up 49.8% to $9.4 million for the twenty-six weeks ended November
30, 1996.
In the third quarter of fiscal 1996, the Board of Directors of the Company
approved the closing of ten Ruby Tuesdays, four Mozzarella's and two Tia's
restaurants based upon management's review of negative cash flow and operating
loss units and other considerations. A charge of $13.4 million was recorded at
that time, consisting of a $10.0 million loss on impairment of assets (net of an
assumed salvage value of $0.9 million), and $3.4 million for the settlement of
the related lease obligations. As of November 30, 1996, 13 of these units have
been closed (ten Ruby Tuesdays and three Mozzarella's). An additional unit is
scheduled to close early in the third quarter. During second quarter of fiscal
1997, management decided to keep the remaining two restaurants open. The
decision to keep two of the units open was made because of operational
improvements at these units. The previously recognized reserve established for
the settlement of the leases for these two units ($0.4 million) plus $0.3
million recorded in second quarter was used to offset additional lease expense
of $0.7 million management estimates it will incur to settle leases related to
the other units included in the restructure. This additional expense results
primarily from expected subleases not being completed in the estimated time.
During the quarter, the Company paid approximately $0.3 million in lease
obligations and settlement costs relating to these units which have been closed.
As of November 30, 1996, $3.0 million of the lease settlement reserve remains.
At November 30, 1996, the remaining recorded salvage value was $0.1 million
Results of Operations:
The following table sets forth selected restaurant operating data as a
percentage of revenues for the periods indicated. All information is derived
from the consolidated financial statements of the Company included herein.
Twenty-Six Weeks Ended
November 30, December 2,
1996 1995
Revenues................................ 100.0% 100.0%
Operating costs and expenses:
Cost of merchandise................ 27.2 27.5
Payroll and related costs.......... 32.9 34.2
Other, net......................... 22.0 22.0
Selling, general and administrative 6.6 7.0
Depreciation....................... 5.9 5.7
Interest expense, net.............. 0.7 0.5
95.3 96.9
Income from continuing
operations before income taxes..... 4.7 3.1
Provision for income taxes.............. 1.7 1.0
Income from continuing operations....... 3.0 2.1
Income from discontinued operations,
net of applicable income taxes..... 3.3
Net income.............................. 3.0% 5.4%
The following table shows year-to-date restaurant openings, closings, and total
restaurants as of the end of the second quarter.
Year-to-date Year-to-date Total Open at End
Openings Closings of Second Quarter
Fiscal Fiscal Fiscal Fiscal Fiscal Fiscal
1997 1996 1997 1996 1997 1996
Ruby Tuesday 17 30 4 3 314 302
Mozzarella's 1 5 0 1 47 48
Tia's 2 3 0 0 20 17
The Company estimates that approximately 14 additional Ruby Tuesdays, one
Mozzarella's, and two Tia's units will be opened during the remainder of fiscal
1997.
Company Restaurant Sales:
Company revenues from continuing operations increased $4.3 million or 2.8% to
$156.3 million for the quarter and increased $15.6 million or 5.2% to $313.6
million for the twenty-six weeks ended November 30, 1996. These increases are
the result of a net addition of 14 units (see previous chart), offset by
declining same store sales.
Cost of Merchandise, Payroll and Related Costs and Other Operating Costs:
Cost of merchandise of continuing operations increased in total for both the
quarter and year-to-date periods. Cost of merchandise for the quarter increased
$0.3 million to $42.9 million and increased $3.2 million to $85.3 million for
the twenty-six weeks ended November 30, 1996. These costs, however, have
decreased slightly as a percentage of revenues. This decrease is attributable
to a new menu implemented during second quarter which resulted in lower food
costs; improvement in rebates and volume discounts; and increased focus
regarding food cost management at the unit level.
Payroll and related costs for the quarter ended November 30, 1996 decreased
slightly (3.2%) compared to the same quarter of the prior year, while year-to-
date costs remained slightly higher (1.1%) than the same period of fiscal 1996.
Payroll and related expenses decreased as a percentage of revenues for both the
thirteen and twenty-six weeks ended November 30, 1996. The decrease is primarily
attributable to management labor reductions made in an effort to more accurately
match the number of managers needed for each unit to unit volume levels and
favorable experience regarding workers' compensation claims.
While other operating costs have increased in total for both the quarter and
year-to-date periods, these costs have remained constant as a percentage of
revenues.
Selling, general and administrative expenses increased in total and as a
percentage of revenues for the quarter ended November 30, 1996 compared to the
same quarter last year. The increase is due to additional advertising expense
incurred related to several promotional projects underway during the second
quarter of fiscal 1997. However, selling, general, and administrative expenses
decreased in total and as a percentage of revenues for the twenty-six weeks
ended November 30, 1996. This is the result of a year-to-date reduction in
advertising expense. As a percentage of revenues, year-to-date fiscal 1997
advertising expense is 0.3% less than fiscal 1996. Concept-wide promotions
which occurred in the first quarter of 1996 were not repeated in 1997.
Depreciation expense increased $0.8 million (9.2%) and $1.9 million (11.2%) for
the quarter and twenty-six weeks ended November 30, 1996, respectively. The
increase is due to the net addition of 14 restaurants and technological
expenditures in the current year, offset by depreciation savings resulting from
the asset write-off associated with the impairment charge of $25.9 million
recognized in the third quarter of fiscal 1996 ($3.9 million of which resulted
from the adoption of FAS 121, "Accounting for the Impairment of Long-Lived
Assets and for Long-Lived Assets to be Disposed of").
Interest Expense (net of Interest Income):
Net interest expense increased $0.1 million to $1.0 million for the quarter and
$0.6 million to $2.2 million for the twenty-six weeks ended November 30, 1996
compared to the same periods of the prior year. The increase is primarily due to
additional expense incurred on the Company's notes and mortgages and short-term
borrowings.
Income Taxes
The effective income tax rate on continuing operations for both the thirteen and
twenty-six weeks ended November 30, 1996 was 35.5% compared to 33.2% and 32.5%,
respectively, for the same periods of the prior year. The effective rate
increased due to a decrease in the Targeted Jobs Tax Credit.
Earnings per Share
Earnings per share are based on the weighted average number of shares outstand-
ing during each quarter and are adjusted for the assumed conversion of shares
issuable upon exercise of options, after the assumed repurchase of common shares
with the related proceeds. The difference between primary and fully diluted
weighted average shares reflects the maximum extent of potential dilution that
conversions of shares could create.
LIQUIDITY AND CAPITAL RESOURCES
Total assets at November 30, 1996 were $406.3 million, a $25.2 million increase
from $381.1 million as of the prior fiscal year end. Net property and equipment
increased $21.9 million from June 1, 1996. The increase was primarily the net
result of capital expenditures of $41.1 million, offset by reductions in net
property and equipment resulting from depreciation expense ($18.7 million) and
retirements ($0.7 million). The Company anticipates that during the remainder of
fiscal 1997, capital expansion will be financed primarily by funds generated by
operations with minimal incremental financing from borrowings on lines of credit
when necessary.
Total liabilities at November 30, 1996 were $196.7 million, a $12.9 million
increase from $183.8 million as of the end of the prior fiscal year. At November
30, 1996 the Company had $70.0 million in borrowings outstanding under its five-
year credit facility. Long-term borrowings of continuing operations decreased
$5.0 million from the end of the prior fiscal year primarily as a result of a
shift to borrowings under the Company's lines of credit. The weighted average
interest rate on these long-term borrowings and lines of credit was 6.06% during
the quarter.
In addition, at November 30, 1996, the Company had committed lines of credit
amounting to $25.0 million (of which $11.0 million remained available at
November 30, 1996) and non-committed lines of credit amounting to $10.0 million
with various banks at varying interest rates. These lines are subject to
periodic review by each bank and may be canceled by the Company at any time.
Accounts payable increased $4.0 million from the prior fiscal year-end primarily
due to an increase in the accrual for construction invoices coupled with
increases attributable to the normal growth in units.
SPECIAL NOTE REGARDING FORWARD-LOOKING INFORMATION
The foregoing sections contain various "forward-looking" statements which
represent the Company's expectations or beliefs concerning future events,
including the following: statements regarding unit growth and future capital
expenditures. The Company cautions that a number of important factors could,
individually or in the aggregate, cause actual results to differ materially from
those included in the forward-looking statements including, without limitation,
the following: consumer spending trends and habits; mall-traffic trends; in-
creased competition in the casual dining restaurant market; weather conditions
in the regions of the country in which the Company operates restaurants;
consumers' acceptance of the Company's development concepts; and laws and
regulations affecting labor and employee benefit costs.
PART II - OTHER INFORMATION
ITEM 1
LEGAL PROCEEDINGS
The Company is, from time to time, party to ordinary, routine litigation
incidental to its business. In the opinion of management, the ultimate
resolution of all pending legal proceedings will not have a material adverse
effect on the Company's business, financial position, results of operations or
liquidity.
ITEM 4
SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS
At the Annual Meeting of Shareholders held on September 30, 1996, the share-
holders of the Company elected Class I Directors to serve a three year term on
the Board. The results of the voting were as follows:
Authority
Director Nominees For Withheld
Arthur R. Outlaw 14,643,119 86,575
Dr. Benjamin F. Payton 14,640,684 89,010
There were no broker non-votes related to this proposal. Those Directors
continuing in office are: Dr. Donald Ratajczak, Samuel E. Beall III, Claire
Arnold, John B. McKinnon, and Dolph W. von Arx.
In addition to the above proposal, the shareholders also voted on a proposal to
amend the Company's 1996 Stock Incentive Plan to increase the number of shares
available for issuance by 250,000 and to increase the limit on the number of
shares that may be subject to awards granted to certain employees during any
fiscal year. The results of the voting were as follows:
10,067,546 shares -FOR the Amendments
4,432,024 shares -AGAINST the Amendments
139,473 shares -ABSTAIN
90,651 shares - Broker Non-votes
ITEM 6
EXHIBITS AND REPORTS ON FORM 8-K
EXHIBITS
The following exhibits are filed as part of this report:
Exhibit
No.
11 Computation of Primary and Fully Diluted Earnings Per Share
27 Financial Data Schedule
REPORTS ON FORM 8-K
None
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf by the
undersigned thereunto duly authorized.
RUBY TUESDAY , INC.
(Registrant)
1/14/97 /s/ J. RUSSELL MOTHERSHED
DATE J. RUSSELL MOTHERSHED
Senior Vice President and
Chief Financial Officer
EXHIBIT INDEX
Exhibit
Number Description
11 Computation of Primary and Fully Diluted Earnings Per Share
27 Financial Data Schedule
<TABLE>
ITEM 6.(a)
EXHIBIT 11: COMPUTATION OF EARNINGS PER SHARE
(DOLLARS IN THOUSANDS EXCEPT PER SHARE DATA)
<CAPTION>
THIRTEEN WEEKS ENDED TWENTY-SIX WEEKS ENDED
NOV. 30, 1996 DEC. 2,1995 NOV. 30, 1996 DEC. 2,1995
PRIMARY EARNINGS PER COMMON AND
COMMON EQUIVALENT SHARE
<S> <C> <C> <C> <C>
Average common shares outstanding...... 17,780 17,488 17,726 17,480
Average additional common shares
issuable on exercise of dilutive
stock options (computed by use of
the "treasury stock method", at the
average market price)................ 73 153 171 228
TOTALS.............. 17,853 17,641 17,897 17,708
Net Income:
Continuing operations.................. $ 3,946 $ 2,087 $ 9,435 $ 6,298
Discontinued operations................ 4,647 9,892
$ 3,946 $ 6,734 $ 9,435 $ 16,190
Primary earnings per common and
common equivalent share:
Continuing operations.................. $ 0.22 $ 0.13 $ 0.53 $ 0.37
Discontinued operations................ 0.26 0.55
</TABLE>
<TABLE>
ITEM 6.(a) (continued)
EXHIBIT 11: COMPUTATION OF EARNINGS PER SHARE
(DOLLARS IN THOUSANDS EXCEPT PER SHARE DATA)
<CAPTION>
THIRTEEN WEEKS ENDED TWENTY-SIX WEEKS ENDED
NOV. 30, 1996 DEC. 2,1995 NOV. 30, 1996 DEC. 2,1995
FULLY DILUTED EARNINGS PER COMMON AND
COMMON EQUIVALENT SHARE
<S> <C> <C> <C> <C>
Average common shares outstanding...... 17,780 17,488 17,726 17,480
Average additional common shares
issuable on exercise of dilutive
stock options (computed by use of
the "treasury stock method", at the
higher of period end or average
market price)........................ 73 153 171 228
TOTALS.............. 17,853 17,641 17,897 17,708
Net Income:
Continuing operations.................. $ 3,946 $ 2,087 $ 9,435 $ 6,298
Discontinued operations................ 4,647 9,892
$ 3,946 $ 6,734 $ 9,435 $ 16,190
Fully diluted earnings per common and
common equivalent share:
Continuing operations.................. $ 0.22 $ 0.13 $ 0.53 $ 0.37
Discontinued operations................ 0.26 0.55
$ 0.22 $ 0.39 $ 0.53 $ 0.92
</TABLE>
<TABLE> <S> <C>
<ARTICLE> 5
<LEGEND>
THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM RUBY
TUESDAY, INC. FINANCIAL STATEMENTS AS OF AND FOR THE PERIOD ENDED NOVEMBER
30, 1996 AND IS QUALIFIED IN ITS ENTIRETY BY REFERENCE TO SUCH FINANCIAL
STATEMENTS.
</LEGEND>
<MULTIPLIER> 1,000
<S> <C>
<PERIOD-TYPE> 6-MOS
<FISCAL-YEAR-END> MAY-31-1997
<PERIOD-END> NOV-30-1996
<CASH> 9,255
<SECURITIES> 0
<RECEIVABLES> 3,541
<ALLOWANCES> 0
<INVENTORY> 9,897
<CURRENT-ASSETS> 35,509
<PP&E> 482,664
<DEPRECIATION> 147,205
<TOTAL-ASSETS> 406,259
<CURRENT-LIABILITIES> 82,235
<BONDS> 71,057
0
0
<COMMON> 178
<OTHER-SE> 209,402
<TOTAL-LIABILITY-AND-EQUITY> 406,259
<SALES> 313,289
<TOTAL-REVENUES> 313,600
<CGS> 85,265
<TOTAL-COSTS> 211,541
<OTHER-EXPENSES> 0
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 2,169
<INCOME-PRETAX> 14,625
<INCOME-TAX> 5,190
<INCOME-CONTINUING> 9,435
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 9,435
<EPS-PRIMARY> $0.53
<EPS-DILUTED> $0.53
</TABLE>
