Ruby Tuesday (Ruby Tuesday) Gross Margin % : 16.76% (As of Aug. 2017)

Ruby Tuesday Gross Margin % Chart

Ruby Tuesday Annual Data
	Trend	May08	May09	May10	May11	May12	May13	May14	May15	May16	May17
Gross Margin %		Get a 7-Day Free Trial					18.48	15.82	17.39	17.29	15.31

Ruby Tuesday Quarterly Data
	Nov12	Feb13	May13	Aug13	Nov13	Feb14	May14	Aug14	Nov14	Feb15	May15	Aug15	Nov15	Feb16	May16	Aug16	Nov16	Feb17	May17	Aug17
Gross Margin %	Get a 7-Day Free Trial															14.22	11.89	16.05	18.63	16.76

Competitive Comparison of Ruby Tuesday's Gross Margin %

For the Restaurants subindustry, Ruby Tuesday's Gross Margin %, along with its competitors' market caps and Gross Margin % data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.

Ruby Tuesday's Gross Margin % Distribution in the Restaurants Industry

For the Restaurants industry and Consumer Cyclical sector, Ruby Tuesday's Gross Margin % distribution charts can be found below:

* The bar in red indicates where Ruby Tuesday's Gross Margin % falls into.

Ruby Tuesday Gross Margin % Calculation

Gross Margin is the percentage of Gross Profit out of sales or Revenue.

Ruby Tuesday's Gross Margin for the fiscal year that ended in May. 2017 is calculated as

Ruby Tuesday's Gross Margin for the quarter that ended in Aug. 2017 is calculated as

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

A positive Gross Profit is only the first step for a company to make a net profit. The gross profit needs to be big enough to also cover related labor, equipment, rental, marketing/advertising, research and development and a lot of other costs in selling the products.

Ruby Tuesday  (NYSE:RT) Gross Margin % Explanation

Warren Buffett believes that firms with excellent long term economics tend to have consistently higher margins.

Durable competitive advantage creates a high Gross Margin % because of the freedom to price in excess of cost. Companies can be categorized by their Gross Margin %

1. Greater than 40% = Durable competitive advantage
2. Less than 40% = Competition eroding margins
3. Less than 20% = no sustainable competitive advantage
Consistency of Gross Margin is key

Ruby Tuesday had a gross margin of 16.76% for the quarter that ended in Aug. 2017 => No sustainable competitive advantage

Be Aware

If a company loses its competitive advantages, usually its gross margin declines well before its sales declines. Watching Gross Margin % and Operating Margin % closely helps avoid value trap situations.

Ruby Tuesday Gross Margin % Related Terms

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Ruby Tuesday (Ruby Tuesday) Business Description