Tremendous report out of RT today. The new mgmt. team is clearly turning this ship around. Both revenue and EPS beat Street estimates. Same store sales were better than expected (-1.9% vs. -4% guidance). Bad weather impacted same store sales by 1.50%....assuming normal weather same store sales would have been almost flat. Same stores sales improved throughout the quarter and Q4 should be even better with guidance for Q4 was better than prior guidance.
RT has done a good job taking expenses out of the business and closing bad locations. Operating margins should expand greatly in Q4. All talk about the debt covenants is now officially dead. RT stock is back from the dead.