Rite Aid Corporation (RAD), JinkoSolar Holding Co., Ltd. (JKS) Among The Three Earnings Reports That Caught My Attention Last Week

Ruby Tuesday, Inc. (NYSE:RT)
No, you aren’t experiencing deja vu: Ruby Tuesday has once again made the list! The casual-dining restaurant chain moved notably higher this past week after reporting its third-quarter results. But as I always wonder anytime Ruby Tuesday has a green arrow next to its ticker symbol, “Is this warranted?”

For the quarter, same-store sales dipped 2.8% and profit fell 52%; not exactly the kind of figures that would inspire confidence in a rally. What’s really behind the sizzle in Ruby Tuesday’s share price is a forecast for flat same-store sales for 2013 and EPS of $0.28-$0.32, which is higher than its own previous forecast of $0.24-$0.30.

Still, I have to wonder what’s going on with existing locations and why it can’t seem to get more traffic into its restaurants. Ruby Tuesday tried promoting its brand and boosting its advertising budget on multiple occasions, but soon realized that it doesn’t have the brand power or budget that some of its competitors do. One perfect case in point is Buffalo Wild Wings (NASDAQ:BWLD), which has done a phenomenal job claiming would-be Ruby Tuesday faithful for itself. Buffalo Wild Wings offers customers a clearly defined niche (wings and sports), and has allowed word of mouth advertising to do a lot of the work in bringing in new customers and repeat business. Ruby Tuesday doesn’t really have a niche. It’s just another casual-dining experience that lacks a direction.

Until I see clearly defined progress on the same-store sales front, I don’t think you can trust an increased forecast as conclusive evidence that this restaurant chain has turned the corner.

Foolish roundup
Sometimes an earnings beat or miss isn’t as cut-and-dried as it appears. I’ve given my two cents on what’s next for each of these companies — now it’s your turn to sound off. Share your thoughts in the comments section below and consider adding these stocks to your free and personalized watchlist.

The article 3 Earnings Reports That Caught My Attention Last Week originally appeared on Fool.com.

Fool contributor Sean Williams has no material interest in any companies mentioned in this article. You can follow him on CAPS under the screen name TMFUltraLong, track every pick he makes under the screen name TrackUltraLong, and check him out on Twitter, where he goes by the handle @TMFUltraLong.The Motley Fool owns shares of, and recommends, Buffalo Wild Wings.

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