10-Q

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:  March 4, 2014

OR

o	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 its charter)

GEORGIA	63-0475239
(State or other jurisdiction of incorporation or organization)	(I.R.S. Employer Identification No.)

150 West Church Avenue, Maryville, Tennessee 37801

(Address of principal executive offices)  (Zip Code)

        Registrant’s telephone number, including area code: (865) 379-5700

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 o

Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files). Yes  x  No o

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, or a smaller reporting company.  See the definitions of “large accelerated filer,” “accelerated filer,” and “smaller reporting company” in Rule 12b-2 of the Exchange Act. (Check one):

Large accelerated filer o                                                                                                         Accelerated filer x

Non-accelerated filer o (Do not check if a smaller reporting company)                         Smaller reporting company o

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes o No x

61,442,221

(Number of shares of common stock, $0.01 par value, outstanding as of April 8, 2014)

RUBY TUESDAY, INC.

INDEX

	Page
PART I - FINANCIAL INFORMATION
ITEM 1. FINANCIAL STATEMENTS
CONDENSED CONSOLIDATED BALANCE SHEETS AS OF
MARCH 4, 2014 AND JUNE 4, 2013	4
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND
COMPREHENSIVE (LOSS)/INCOME FOR THE THIRTEEN AND THIRTY-
NINE WEEKS ENDED MARCH 4, 2014 AND MARCH 5, 2013	5
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
FOR THE THIRTY-NINE WEEKS ENDED MARCH 4, 2014 AND
MARCH 5, 2013	6
NOTES TO CONDENSED CONSOLIDATED FINANCIAL
STATEMENTS	7-30
ITEM 2. MANAGEMENT’S DISCUSSION AND ANALYSIS
OF FINANCIAL CONDITION AND RESULTS
OF OPERATIONS	31-48
ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT
MARKET RISK	49
ITEM 4. CONTROLS AND PROCEDURES	49
PART II - OTHER INFORMATION
ITEM 1. LEGAL PROCEEDINGS	49-50
ITEM 1A. RISK FACTORS	50
ITEM 2. UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS	50
ITEM 3. DEFAULTS UPON SENIOR SECURITIES	50
ITEM 4. MINE SAFETY DISCLOSURES	50
ITEM 5. OTHER INFORMATION	50-51
ITEM 6. EXHIBITS	51
SIGNATURES	52

2

Special Note Regarding Forward-Looking Information

This Quarterly Report on Form 10-Q contains various forward-looking statements, which represent our expectations or beliefs concerning future events, including one or more of the following:  future financial performance, future capital expenditures, the effect of strategic initiatives (including cost-cutting initiatives), sales of our real estate, future borrowings and repayments of debt, availability of financing on terms attractive to the Company, compliance with financial covenants in our debt instruments, restaurant growth (both Company-owned and franchised), payment of dividends, stock and bond repurchases, restaurant acquisitions, and changes in senior management and in the Board of Directors.  We caution the reader that a number of important factors and uncertainties could, individually or in the aggregate, cause our actual results to differ materially from those included in the forward-looking statements (such statements include, but are not limited to, statements relating to cost savings that we estimate may result from any programs we implement, our estimates of future capital spending, our targets for annual growth in same-restaurant sales and average annual sales per restaurant, and the benefits of our television marketing), including, without limitation, the following:

·   general economic conditions;

·   changes in promotional, couponing and advertising strategies;

·   changes in our customers’ disposable income;

·   consumer spending trends and habits;

·   increased competition in the restaurant market;

·   laws and regulations affecting labor and employee benefit costs, including further potential increases in state and federally mandated minimum wages, and healthcare reform;

·   customers’ acceptance of changes in menu items;

·   changes in the availability and cost of capital;

·   potential limitations imposed by debt covenants under our debt instruments;

·   mall-traffic trends;

·   weather conditions in the regions in which Company-owned and franchised restaurants are operated;

·   costs and availability of food and beverage inventory;

·   our ability to attract and retain qualified managers, franchisees and team members;

·   impact of adoption of new accounting standards;

·   impact of food-borne illnesses resulting from an outbreak at either one of our restaurant concepts or other competing restaurant concepts;

·   effects of actual or threatened future terrorist attacks in the United States; and

·   significant fluctuations in energy prices.

3

PART I — FINANCIAL INFORMATION

ITEM 1.

RUBY TUESDAY, INC.

CONDENSED CONSOLIDATED BALANCE SHEETS

(IN THOUSANDS EXCEPT PER-SHARE DATA)

(UNAUDITED)

	MARCH 4,			JUNE 4,
	2014			2013
Assets	(NOTE A)
Current assets:
Cash and cash equivalents	$	44,474		$	52,907
Accounts receivable		5,044			4,834
Inventories:
Merchandise		13,895			21,779
China, silver and supplies		8,845			9,093
Income tax receivable		4,241			1,900
Deferred income taxes		4,297			7,296
Prepaid rent and other expenses		13,501			14,180
Assets held for sale		6,635			9,175
Total current assets		100,932			121,164
Property and equipment, net		808,328			859,830
Other assets		60,128			62,189
Total assets	$	969,388		$	1,043,183
Liabilities & Shareholders’ Equity
Current liabilities:
Accounts payable	$	29,426		$	14,964
Accrued liabilities:
Taxes, other than income and payroll		10,192			11,311
Payroll and related costs		21,334			25,425
Insurance		7,125			9,095
Deferred revenue – gift cards		18,687			13,454
Rent and other		30,573			22,896
Current portion of long-term debt, including capital leases		4,769			8,487
Total current liabilities		122,106			105,632
Long-term debt and capital leases, less current maturities		262,104			290,515
Deferred income taxes		2,443			5,753
Deferred escalating minimum rent		48,738			46,892
Other deferred liabilities		72,785			77,556
Total liabilities		508,176			526,348
Commitments and contingencies (Note N)
Shareholders’ equity:
Common stock, $0.01 par value; (authorized: 100,000 shares;
issued: 61,442 shares at 3/04/14; 61,248 shares at 6/04/13)		614			612
Capital in excess of par value		74,470			67,596
Retained earnings		395,640			459,572
Deferred compensation liability payable in
Company stock		500			1,094
Company stock held by Deferred Compensation Plan		(500	)		(1,094	)
Accumulated other comprehensive loss		(9,512	)		(10,945	)
Total shareholders’ equity		461,212			516,835
Total liabilities & shareholders’ equity	$	969,388		$	1,043,183

                   The accompanying notes are an integral part of the condensed consolidated financial statements.

4

RUBY TUESDAY, INC.

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

AND COMPREHENSIVE (LOSS)/INCOME

(IN THOUSANDS EXCEPT PER-SHARE DATA)

(UNAUDITED)

	THIRTEEN WEEKS ENDED							THIRTY-NINE WEEKS ENDED
	MARCH 4,			MARCH 5,				MARCH 4,			MARCH 5,
	2014			2013				2014			2013
	(NOTE A)							(NOTE A)
Revenue:
Restaurant sales and operating revenue	$	293,964			$	305,835		$	856,775		$	930,699
Franchise revenue		1,588				1,548			4,660			4,684
		295,552				307,383			861,435			935,383
Operating costs and expenses:
Cost of merchandise		80,980				83,795			238,587			254,505
Payroll and related costs		101,351				105,364			301,601			313,287
Other restaurant operating costs		64,161				61,946			196,984			193,448
Depreciation		13,327				14,614			41,451			44,303
Selling, general and administrative, net		33,340				30,276			107,386			111,823
Closures and impairments, net		3,771				2,096			25,947			5,074
Trademark impairment		855				–			855			–
Interest expense, net		5,967				6,591			19,340			20,146
Loss/(gain) on extinguishment of debt		–				–			1,183			(155	)
		303,752				304,682			933,334			942,431
(Loss)/income from continuing operations before
income taxes		(8,200	)			2,701			(71,899	)		(7,048	)
Benefit for income taxes from continuing
operations		(807	)			(2,015	)		(7,870	)		(10,634	)
(Loss)/income from continuing operations		(7,393	)			4,716			(64,029	)		3,586
Income/(loss) from discontinued operations, net of tax		86				(2,520	)		97			(13,859	)
Net (loss)/income	$	(7,307	)		$	2,196		$	(63,932	)	$	(10,273	)
Other comprehensive income:
Pension liability reclassification, net of tax		477				380			1,432			1,141
Total comprehensive (loss)/income	$	(6,830	)		$	2,576		$	(62,500	)	$	(9,132	)
Basic (loss)/income per share:
(Loss)/income from continuing operations	$	(0.12	)		$	0.08		$	(1.06	)	$	0.06
Income/(loss) from discontinued operations		0.00				(0.04	)		0.00			(0.23	)
Net (loss)/income per share	$	(0.12	)		$	0.04		$	(1.06	)	$	(0.17	)
Diluted (loss)/income per share:
(Loss)/income from continuing operations	$	(0.12	)		$	0.08		$	(1.06	)	$	0.06
Income/(loss) from discontinued operations		0.00				(0.04	)		0.00			(0.22	)
Net (loss)/income per share	$	(0.12	)		$	0.04		$	(1.06	)	$	(0.16	)
Weighted average shares:
Basic		60,351				59,778			60,191			61,532
Diluted		60,351				60,312			60,191			61,986
Cash dividends declared per share	$	–			$	–		$	–		$	–

                 The accompanying notes are an integral part of the condensed consolidated financial statements.

5

RUBY TUESDAY, INC.

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(IN THOUSANDS)

(UNAUDITED)

	THIRTY-NINE WEEKS ENDED
	MARCH 4, 2014			MARCH 5, 2013
	(NOTE A)
Operating activities:
Net loss	$	(63,932	)	$	(10,273	)
Adjustments to reconcile net loss to net cash
provided by operating activities:
Depreciation		41,451			45,199
Amortization of intangibles		1,933			2,562
Deferred income taxes		(312	)		(25,358	)
Loss on impairments, including disposition of assets		20,242			21,161
Trademark impairment		855			–
Loss/(gain) on extinguishment of debt		1,183			(155	)
Share-based compensation expense		5,785			3,157
Excess tax benefits from share-based compensation		(284	)		(87	)
Lease reserve adjustments		4,549			3,003
Deferred escalating minimum rent		2,024			2,495
Other, net		4,009			(111	)
Changes in operating assets and liabilities:
Receivables		(137	)		(366	)
Inventories		8,132			(4,250	)
Income taxes		(2,341	)		(1,490	)
Prepaid and other assets		(204	)		(1,662	)
Accounts payable, accrued and other liabilities		6,201			(18,371	)
Net cash provided by operating activities		29,154			15,454
Investing activities:
Purchases of property and equipment		(22,557	)		(27,733	)
Proceeds from sale-leaseback transactions, net		5,637			38,872
Proceeds from disposal of assets		10,949			5,451
Insurance proceeds from property claims		218			–
Reductions in Deferred Compensation Plan assets		770			788
Other, net		(146	)		(372	)
Net cash (used)/provided by investing activities		(5,129	)		17,006
Financing activities:
Principal payments on long-term debt		(31,981	)		(20,300	)
Stock repurchases		(579	)		(30,149	)
Payments for debt issuance costs		(1,758	)		–
Proceeds from exercise of stock options		1,576			1,478
Excess tax benefits from share-based compensation		284			87
Net cash used by financing activities		(32,458	)		(48,884	)
Decrease in cash and cash equivalents		(8,433	)		(16,424	)
Cash and cash equivalents:
Beginning of year		52,907			48,184
End of quarter	$	44,474		$	31,760
Supplemental disclosure of cash flow information:
Cash paid for:
Interest, net of amount capitalized	$	13,191		$	14,275
Income taxes, net	$	1,513		$	3,892
Significant non-cash investing and financing activities:
Retirement of fully depreciated assets	$	34,090		$	49,190
Reclassification of properties to assets held for sale	$	8,049		$	9,624

                 The accompanying notes are an integral part of the condensed consolidated financial statements.

6

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

NOTE A – BASIS OF PRESENTATION

Ruby Tuesday, Inc., including its wholly-owned subsidiaries (“RTI,” the “Company,” “we,” and/or “our”), owns and operates Ruby Tuesday® casual dining and Lime Fresh Mexican Grill® (“Lime Fresh”) fast casual restaurants.  We also franchise the Ruby Tuesday and Lime Fresh concepts in selected domestic and international markets.  The accompanying unaudited condensed consolidated financial statements have been prepared pursuant to the rules and regulations of the Securities and Exchange Commission (“SEC”).  Accordingly, they do notinclude all of the information and footnotes required by U.S. generally accepted accounting principles (“GAAP”) for complete financial statements.  In the opinion of management, all adjustments (consisting only of normal recurring entries) considered necessary for a fair presentation have been included.  The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes.  Actual results could differ from those estimates.  Operating results for the 13- and 39-week periods ended March 4, 2014 are not necessarily indicative of results that may be expected for the 52-week year ending June 3, 2014.

The Condensed Consolidated Balance Sheet at June 4, 2013 has been derived from the audited consolidated financial statements at that date but does not include all of the information and footnotes required by GAAP for complete financial statements.  We reclassified $0.4 million from Interest expense, net to Gain on extinguishment of debt in our Condensed Consolidated Statements of Operations and Comprehensive Loss for the 39 weeks ended March 5, 2013.  We also made certain reclassifications to prior year amounts in our Condensed Consolidated Statements of Cash Flows to conform to current period presentation (all reclassifications were within Operating activities).

For further information, refer to the consolidated financial statements and footnotes thereto included in RTI’s Annual Report on Form 10-K for the fiscal year ended June 4, 2013.

NOTE B – (LOSS)/EARNINGS PER SHARE AND STOCK REPURCHASES

Basic (loss)/earnings per share is computed by dividing net (loss)/income by the weighted average number of common shares outstanding during each period presented.  Diluted (loss)/earnings per share gives effect to stock options and restricted stock outstanding during the applicable periods, if dilutive.  The following table reflects the calculation of weighted-average common and dilutive potential common shares outstanding as presented in the accompanying Condensed Consolidated Statements of Operations and Comprehensive (Loss)/Income (in thousands, except per-share data):

	Thirteen weeks ended						Thirty-nine weeks ended
	March 4,  2014			March 5,  2013			March 4,  2014			March 5,  2013
(Loss)/income from continuing operations	$	(7,393	)	$	4,716		$	(64,029	)	$	3,586
Income/(loss) from discontinued operations, net of tax		86			(2,520	)		97			(13,859	)
Net (loss)/income	$	(7,307	)	$	2,196		$	(63,932	)	$	(10,273	)
Weighted-average common shares outstanding		60,351			59,778			60,191			61,532
Dilutive effect of stock options and restricted stock		–			534			–			454
Weighted average common and dilutive potential
common shares outstanding		60,351			60,312			60,191			61,986
(Loss)/income per share – Basic
(Loss)/income from continuing operations	$	(0.12	)	$	0.08		$	(1.06	)	$	0.06
Income/(loss) from discontinued operations		0.00			(0.04	)		0.00			(0.23	)
Net (loss)/income per share	$	(0.12	)	$	0.04		$	(1.06	)	$	(0.17	)
(Loss)/income per share – Diluted
(Loss)/income from continuing operations	$	(0.12	)	$	0.08		$	(1.06	)	$	0.06
Income/(loss) from discontinued operations		0.00			(0.04	)		0.00			(0.22	)
Net (loss)/income per share	$	(0.12	)	$	0.04		$	(1.06	)	$	(0.16	)

7

Stock options with an exercise price greater than the average market price of our common stock and certain options with unrecognized compensation expense do not impact the computation of diluted (loss)/income per share because the effect would be anti-dilutive.  The following table summarizes stock options and restricted shares that did not impact the computation of diluted (loss)/income per share because their inclusion would have had an anti-dilutive effect (in thousands):

	Thirteen weeks ended					Thirty-nine weeks ended
	March 4, 2014			March 5, 2013		March 4, 2014			March 5, 2013
Stock options		2,692	*		2,410		2,882	*		2,116
Restricted shares		1,090	*		1,119		1,136	*		1,203
Total		3,782			3,529		4,018			3,319

* Due to a net loss from continuing operations for the 13 and 39 weeks ended March 4, 2014, all then outstanding share-based awards were excluded from the computation of diluted loss per share.

During the first 39 weeks of fiscal 2014, we repurchased 0.1 million shares of our common stock at a cost of $0.6 million.  As of March 4, 2014, the total number of remaining shares authorized by our Board of Directors to be repurchased was 11.8 million.  All shares repurchased during the 39 week period were cancelled as of March 4, 2014.

NOTE C – FRANCHISE PROGRAMS

As of March 4, 2014, our domestic and international franchisees collectively operated 76 Ruby Tuesday restaurants and eight Lime Fresh restaurants.  We do not own any equity interest in our franchisees.

Under the terms of the franchise operating agreements, we charge a royalty fee (generally 4.0% of monthly sales for Ruby Tuesday concept franchisees and 5.25% of monthly sales for Lime Fresh concept franchisees) and require all of our Ruby Tuesday domestic franchisees to contribute a percentage, 1.5% as of March 4, 2014, of monthly gross sales to a national advertising fund formed to cover their pro rata portion of the production and airing costs associated with our national advertising campaign.  Under the terms of those agreements, we can charge up to 3.0% of monthly gross sales for this national advertising fund.

Advertising amounts received from domestic franchisees are considered by RTI to be reimbursements, recorded on an accrual basis as earned, and have been netted against selling, general and administrative expenses in the Condensed Consolidated Statements of Operations and Comprehensive (Loss)/Income.

In addition to the advertising fee discussed above, our Ruby Tuesday concept franchise agreements allow us to charge up to a 2.0% support service fee and a 1.5% marketing and purchasing fee.  For the 13 and 39 weeks ended March 4, 2014 and March 5, 2013, we recorded $0.3 million and $0.8 million, respectively in fiscal 2014, and $0.2 million and $0.6 million, respectively in fiscal 2013, in support service and marketing and purchasing fees, which were an offset to Selling, general and administrative, net in our Condensed Consolidated Statements of Operations and Comprehensive (Loss)/Income.

NOTE D – DISCONTINUED OPERATIONS

In an effort to focus primarily on the successful sales turnaround of our core Ruby Tuesday concept and secondly, to improve the financial performance of our Lime Fresh concept, we closed all 13 Marlin & Ray’s restaurants, the Company’s one Wok Hay restaurant, and our two Truffles restaurants during fiscal 2013.  We have classified the results of operations of our Company-owned Marlin & Ray’s, Wok Hay, and Truffles concepts as discontinued operations for all periods presented.  The results of operations of our discontinued operations are as follows (in thousands):

	Thirteen weeks ended						Thirty-nine weeks ended
	March 4, 2014			March 5, 2013			March 4, 2014			March 5, 2013
Restaurant sales and operating revenue	$	–		$	2,421		$	–		$	11,575
Income/(loss) before income taxes	$	77		$	(4,405	)	$	2		$	(23,172	)
Benefit for income taxes		(9	)		(1,885	)		(95	)		(9,313	)
Income/(loss) from discontinued operations	$	86		$	(2,520	)	$	97		$	(13,859	)

We had $2.8 million of assets associated with the closed concept restaurants, which are included in Property and equipment, net in our June 4, 2013 Condensed Consolidated Balance Sheet.  There were no

8

assets associated with the closed concept restaurants included within Property and equipment, net in our March 4, 2014 Condensed Consolidated Balance Sheet.  Additionally, included within Assets held for sale in our March 4, 2014 and June 4, 2013 Condensed Consolidated Balance Sheets are $0.8 million and $4.2 million, respectively, of assets associated with the closed concept restaurants.  See Note I to the Condensed Consolidated Financial Statements for a discussion of closed restaurant lease reserves as of March 4, 2014 and June 4, 2013 associated with the closed concept restaurants.

NOTE E – ACCOUNTS RECEIVABLE

Accounts receivable – current consist of the following (in thousands):

	March 4, 2014		June 4, 2013
Rebates receivable	$	961	$	874
Amounts due from franchisees		1,294		917
Other receivables		2,789		3,043
	$	5,044	$	4,834

We negotiate purchase arrangements, including price terms, with designated and approved suppliers on behalf of us and our franchise system.  We receive various volume discounts and rebates based on purchases for our Company-owned restaurants from numerous suppliers.

Amounts due from franchisees consist of royalties, license and other miscellaneous fees, a substantial portion of which represents current and recently-invoiced billings.

As of March 4, 2014 and June 4, 2013, Other receivables consisted primarily of amounts due for third-party gift card sales ($0.9 million and $1.8 million, respectively), amounts due from our distributor ($0.9 million and $0.4 million, respectively), amounts due from landlords ($0.1 million and $0.5 million, respectively), and sales and other miscellaneous tax refunds ($0.3 million and $0.1 million, respectively).

NOTE F – INVENTORIES

Our merchandise inventory was $13.9 million and $21.8 million as of March 4, 2014 and June 4, 2013, respectively.  In order to ensure adequate supply and competitive pricing, we have historically purchased lobster in advance of our needs and stored it in third-party facilities prior to our distributor taking possession of the inventory.  The decrease in merchandise inventory from the end of the prior fiscal year is due primarily to a reduction in lobster inventory as we have suspended the advance purchasing of lobster to utilize the lobster that is currently on hand.

NOTE G – PROPERTY, EQUIPMENT, ASSETS HELD FOR SALE, OPERATING LEASES, AND SALE-LEASEBACK TRANSACTIONS

Property and equipment, net, is comprised of the following (in thousands):

	March 4, 2014		June 4, 2013
Land	$	214,691	$	222,385
Buildings		433,174		448,681
Improvements		371,552		402,371
Restaurant equipment		250,907		260,576
Other equipment		85,881		91,351
Construction in progress and other*		21,964		23,080
		1,378,169		1,448,444
Less accumulated depreciation		569,841		588,614
	$	808,328	$	859,830

9

* Included in Construction in progress and other as of March 4, 2014 and June 4, 2013 are $16.7 million and $14.8 million, respectively, of assets held for sale that are not classified as such in the Condensed Consolidated Balance Sheets as we do not expect to sell these assets within the next 12 months.  These assets primarily consist of parcels of land upon which we have no intention to build restaurants.

Included within the current assets section of our Condensed Consolidated Balance Sheets at March 4, 2014 and June 4, 2013 are amounts classified as held for sale totaling $6.6 million and $9.2 million, respectively.  Assets held for sale primarily consist of parcels of land upon which we have no intention to build restaurants, land and buildings of closed restaurants, and various liquor licenses.  During the 13 and 39 weeks ended March 4, 2014, we sold surplus properties with carrying values of $1.9 million and $10.1 million, respectively, at net gains of $0.6 million and $0.8 million, respectively.  Cash proceeds, net of broker fees, from these sales during the 13 and 39 weeks ended March 4, 2014 totaled $2.5 million and $10.8 million, respectively.  During the 13 and 39 weeks ended March 5, 2013, we sold surplus properties with carrying values of $3.3 million and $4.9 million, respectively, at net gains that were negligible and $0.5 million, respectively.  Cash proceeds, net of broker fees, from these sales during the 13 and 39 weeks ended March 5, 2013 totaled $3.4 million and $5.5 million, respectively.

Approximately 56% of our 699 Company-owned restaurants are located on leased properties.  Of these, approximately 68% are land leases only; the other 32% are for both land and building.  The initial terms of these leases expire at various dates over the next 23 years.  These leases may also contain required increases in minimum rent at varying times during the lease term and have options to extend the terms of the leases at a rate that is included in the original lease agreement.  Most of our leases require the payment of additional (contingent) rent that is based upon a percentage of restaurant sales above agreed upon sales levels for the year.  These sales levels vary for each restaurant and are established in the lease agreements.  We recognize contingent rental expense (in annual as well as interim periods) prior to the achievement of the specified target that triggers the contingent rental expense, provided that achievement of that target is considered probable.

During the 39 weeks ended March 4, 2014, we completed sale-leaseback transactions of the land and building for three Company-owned Ruby Tuesday concept restaurants for gross cash proceeds of $5.9 million, exclusive of transaction costs of approximately $0.3 million.  Equipment was not included.  The carrying value of the properties sold was $4.8 million.  None of these sale-leaseback transactions occurred during the 13 weeks ended March 4, 2014.  During the 13 and 39 weeks ended March 5, 2013, we completed sale-leaseback transactions of the land and building for four and 18 Company-owned Ruby Tuesday concept restaurants, respectively, for gross cash proceeds of $8.8 million and $40.8 million, respectively, exclusive of transaction costs of approximately $0.4 million and $2.0 million, respectively.  Equipment was not included.  The carrying value of the properties sold was $7.3 million and $30.0 million, respectively.  The leases have been classified as operating leases and have initial terms of 15 years, with renewal options of up to 20 years following a rent reset based on fair market value at the end of the initial term.  Net proceeds from fiscal 2014 and 2013’s sale-leaseback transactions have been used for general corporate purposes, including debt payments and the repurchase of shares of our common stock.

We realized gains on these transactions during the 39 weeks ended March 4, 2014 and March 5, 2013 of $0.8 million and $8.8 million, respectively, and during the 13 weeks ended March 5, 2013 of $1.1 million, which have been deferred and are being recognized on a straight-line basis over the lease term.  The current portion of the deferred gains on all sale-leaseback transactions to date was $1.1 million and $1.0 million as of March 4, 2014 and June 4, 2013, respectively, and is included in Accrued liabilities – Rent and other in our Condensed Consolidated Balance Sheets.  The long-term portion of the deferred gains on all sale-leaseback transactions to date was $13.2 million as of both March 4, 2014 and June 4, 2013, and is included in Other deferred liabilities in our Condensed Consolidated Balance Sheets.  Amortization of the deferred gains of $0.3 million and $0.8 million for the 13 and 39 weeks ended March 4, 2014, respectively, and $0.2 million and $0.5 million for the 13 and 39 weeks ended March 5, 2013, respectively, is included within Other restaurant operating costs in our Condensed Consolidated Statements of Operations and Comprehensive (Loss)/Income.

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NOTE H – LONG-TERM DEBT AND CAPITAL LEASES

Long-term debt and capital lease obligations consist of the following (in thousands):

	March 4, 2014			June 4, 2013
Senior unsecured notes	$	222,113		$	235,000
Unamortized discount		(2,670	)		(3,083	)
Senior unsecured notes less unamortized discount		219,443			231,917
Revolving credit facility		–			–
Mortgage loan obligations		47,239			66,883
Capital lease obligations		191			202
		266,873			299,002
Less current maturities		4,769			8,487
	$	262,104		$	290,515

On May 14, 2012, we entered into an indenture (the “Indenture”) among the Company, certain subsidiaries of the Company as guarantors and Wells Fargo Bank, National Association as trustee, governing the Company’s $250.0 million aggregate principal amount of 7.625% senior notes due 2020 (the “Senior Notes”).  The Senior Notes were issued at a discount of $3.7 million, which is being amortized using the effective interest method over the eight-year term of the notes.

The Senior Notes are guaranteed on a senior unsecured basis by our existing and future domestic restricted subsidiaries, subject to certain exceptions.  They rank equal in right of payment with our existing and future senior indebtedness and senior in right of payment to any of our future subordinated indebtedness.  The Senior Notes are effectively subordinated to all of our secured debt, including borrowings outstanding under our revolving credit facility, to the extent of the value of the assets securing such debt and structurally subordinated to all of the liabilities of our existing and future subsidiaries that do not guarantee the Senior Notes.

Interest on the Senior Notes is calculated at 7.625% per annum, payable semiannually on each May 15 and November 15 to holders of record on the May 1 or November 1 immediately preceding the interest payment date.  Accrued interest on the Senior Notes and our other long-term debt and capital lease obligations is included in Accrued liabilities – Rent and other in our Consolidated Balance Sheets.  The Senior Notes mature on May 15, 2020.

At any time prior to May 15, 2016, we may redeem the Senior Notes, in whole or in part, at a redemption price equal to 100% of the principal amount, plus an applicable “make-whole” premium and accrued and unpaid interest.  At any time on or after May 15, 2016, we may redeem the Senior Notes, in whole or in part, at the redemption prices specified in the Indenture plus accrued and unpaid interest.  At any time prior to May 15, 2015, we may redeem up to 35% of the Senior Notes from the proceeds of certain equity offerings.  There is no sinking fund for the Senior Notes.

The Indenture contains covenants that limit, among other things, our ability and the ability of certain of our subsidiaries to (i) incur or guarantee additional indebtedness; (ii) declare or pay dividends, redeem stock or make other distributions to stockholders; (iii) make certain investments; (iv) create liens or use assets as security in other transactions; (v) merge or consolidate, or sell, transfer, lease or dispose of substantially all of their assets; (vi) enter into transactions with affiliates; and (vii) sell or transfer certain assets.  These covenants are subject to a number of important exceptions and qualifications, as described in the Indenture, and certain covenants will not apply at any time when the Senior Notes are rated investment grade by the Rating Agencies, as defined in the Indenture.  The Indenture also provides for events of default, which, if any of them occurs, would permit or require the principal, premium, if any, interest and any other monetary obligations on all the then outstanding Senior Notes to be due and payable immediately.

Under the terms of our December 2013 four-year revolving credit agreement (the “Senior Credit Facility” discussed below) we are allowed, under certain circumstances, to repurchase up to $20.0 million of the Senior Notes in any fiscal year.  During the 39 weeks ended March 4, 2014, we repurchased $12.9 million of the Senior Notes for $13.0 million plus $0.2 million of accrued interest.  We realized losses of $0.5 million on these transactions.  The balance on the Senior Notes was $222.1 million at March 4, 2014 as a result of these repurchases. 

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On December 3, 2013, we entered into the Senior Credit Facility under which we may borrow up to $50.0 million with the option, subject to certain conditions, to increase the facility by up to $35.0 million.  The Senior Credit Facility, which was obtained to provide access to capital for general corporate purposes, replaced a previous five-year $200.0 million credit facility that was set to expire in December 2015.  The terms of the Senior Credit Facility provide for a $25.0 million sublimit for the issuance of standby letters of credit.  In connection with entering into the Senior Credit Facility, included within Interest expense, net and Loss/(gain) on extinguishment of debt in our Condensed Consolidated Statements of Operations and Comprehensive (Loss)/Income for the 39 weeks ended March 4, 2014 are charges of $0.7 million relating to the write-off of the pro rata portion of unamortized debt issuance costs associated with our previous credit facility.

Under the Senior Credit Facility, interest rates charged on borrowings can vary depending on the interest rate option we choose to utilize.  Our options for the rate are a Base Rate or LIBOR, plus an applicable margin.  The Base Rate is defined as the highest of the issuing bank’s prime rate, the Federal Funds rate plus 0.50%, or the Adjusted LIBO rate (as defined in the Senior Credit Facility) plus 1.0%.  The applicable margin for the LIBOR rate-based option is a percentage ranging from 2.50% to 3.50% and for the Base Rate option is a percentage ranging from 1.50% to 2.50%.  We pay commitment fees quarterly ranging from 0.40% to 0.75% on the unused portion of the Senior Credit Facility.

As security for the Senior Credit Facility, we granted the lenders liens and security interests in substantially all of the shares of capital stock of the Company and each of our present and future subsidiaries, substantially all of the personal property of the Company and each of our present and future subsidiaries, and the real property, improvements, and fixtures of 49 Ruby Tuesday restaurants.  The real property, improvements, and fixtures of the 49 restaurants pledged as collateral appraised at $101.4 million at the time of the transaction and have a March 4, 2014 net book value of $80.8 million.

Under the terms of the Senior Credit Facility, we had no borrowings outstanding at March 4, 2014.  After consideration of letters of credit outstanding, we had $37.6 million available under the Senior Credit Facility as of March 4, 2014.

The Senior Credit Facility contains a number of customary affirmative and negative covenants that, among other things, limit or restrict our ability to incur liens, engage in mergers or other fundamental changes, make acquisitions, investments, loans and advances, pay dividends or other distributions, sell or otherwise dispose of certain assets, engage in certain transactions with affiliates, enter into burdensome agreements or certain hedging agreements, amend organizational documents, change accounting practices, incur additional indebtedness and prepay other indebtedness.  In addition, under the Senior Credit Facility, we are required to comply with financial covenants relating to the maintenance of a maximum leverage ratio and a minimum fixed charge coverage ratio.  The terms of the Senior Credit Facility require us to maintain a maximum leverage ratio of no more than 4.75 to 1.0 and a minimum fixed charge coverage ratio of 1.40 to 1.0 for the quarter ended March 4, 2014.  The terms of the Senior Credit Facility require us to maintain a maximum leverage ratio of no more than 5.00 to 1.0 and a minimum fixed charge coverage ratio of 1.30 to 1.0 for the quarter ending June 3, 2014.  The minimum required ratios fluctuate thereafter as provided in the Senior Credit Facility.

The Senior Credit Facility terminates not later than December 3, 2017.  Upon the occurrence of an event of default, the lenders may terminate the loan commitments, accelerate all loans and exercise any of their rights under the Senior Credit Facility and any ancillary loan documents.

On December 3, 2013, in connection with our entry into the Senior Credit Facility, the Company and certain of its subsidiaries entered into loan modification agreements (the “Loan Modification Agreements”) with certain mortgage lenders to, among other things, provide waivers and consents under certain of our mortgage loan obligations to enter into the Senior Credit Facility.  The Loan Modification Agreements also, among other things, amend certain financial reporting requirements under the specified loans and modify and/or provide for certain financial covenants for the specified loans, including the minimum consolidated fixed charge coverage ratio and the minimum adjusted total debt to EBITDAR ratio.  In conjunction with one of the loan modification agreements, on January 2, 2014, we paid approximately $5.0 million to retire a specified portion of certain mortgage loan obligations.

Our $47.2 million in mortgage loan obligations as of March 4, 2014 consists of various loans acquired upon franchise acquisitions.  These loans, which mature between January 2015 and November 2022, have

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balances which range from $0.1 million to $7.7 million and interest rates of 7.60% to 10.92%.  Many of the properties acquired from franchisees collateralize the loans outstanding.

NOTE I – CLOSURES AND IMPAIRMENTS EXPENSE, INCLUDING TRADEMARK IMPAIRMENTS

Closures and impairments, net include the following for the 13 and 39 weeks ended March 4, 2014 and March 5, 2013 (in thousands):

	Thirteen weeks ended						Thirty-nine weeks ended
	March 4, 2014			March 5, 2013			March 4, 2014			March 5, 2013
Closures and impairments from
continuing operations:
Property impairments	$	2,908		$	543		$	20,156		$	3,203
Closed restaurant lease reserves		257			1,340			4,554			1,714
Other closing costs		983			263			1,561			805
Loss/(gain) on sale of surplus properties		(377	)		(50	)		(324	)		(648	)
Closures and impairments, net	$	3,771		$	2,096		$	25,947		$	5,074
Closures and impairments from
discontinued operations	$	(77	)	$	3,958		$	(12	)	$	20,355

A roll forward of our future lease obligations associated with closed properties is as follows (in thousands):

	Lease Obligations
	Continuing Operations			Discontinued Concepts			Total
Balance at June 4, 2013	$	6,417		$	2,310		$	8,727
Closing expense including rent and other lease charges		4,554			(6	)		4,548
Payments		(3,628	)		(1,080	)		(4,708	)
Other adjustments		591			2			593
Balance at March 4, 2014	$	7,934		$	1,226		$	9,160

For the remainder of fiscal 2014 and beyond, our focus will be on obtaining settlements, or subleases as necessary, on as many of these leases as possible and these settlements could be higher or lower than the amounts recorded.  The actual amount of any cash payments made by the Company for lease contract termination costs will be dependent upon ongoing negotiations with the landlords of the leased restaurant properties.

During the quarter ended March 4, 2014, we closed 24 Ruby Tuesday concept restaurants in connection with a plan approved by the Board of Directors of Ruby Tuesday, Inc. on January 7, 2014.  Of these closures, 11 of these restaurants closed upon expiration of their lease.  We plan to close approximately six to nine additional Ruby Tuesday concept restaurants during the fourth quarter of fiscal 2014 in connection with this plan as currently modified.  Included within Closures and impairments, net for the 39 weeks ended March 4, 2014 are impairment charges recognized during the second quarter of the current year of $4.4 million in connection with the early restaurant closures.

In addition to the impairment charges recorded in connection with the planned closures discussed above, during the 13 and 39 weeks ended March 4, 2014, we recorded $2.2 million and $12.5 million, respectively, of impairments relating to five and 27 open restaurants, respectively, with deteriorating operational performance and a $0.9 million impairment charge during the 13 weeks ended March 4, 2014 for the Lime Fresh trademark.  The Lime Fresh trademark, which previously had been impaired by $5.0 million in the fourth quarter of fiscal 2013, has a net book value of $3.7 million remaining at March 4, 2014.

At March 4, 2014, we had 58 restaurants that had been open more than one year with rolling 12-month negative cash flows of which 39 have been impaired to salvage value.  Of the 19 which remained, we reviewed the plans to improve cash flows at each of the restaurants and determined that no impairment was currently necessary.  The remaining net book value of these 19 restaurants, seven of which are located on owned properties, was $19.7 million at March 4, 2014.

Should sales at these restaurants not improve within a reasonable period of time, further impairment charges are possible.  Considerable management judgment is necessary to estimate future cash flows,

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including cash flows from continuing use, terminal value, closure costs, salvage value, and sublease income.  Accordingly, actual results could vary significantly from our estimates.

NOTE J – EMPLOYEE POST-EMPLOYMENT BENEFITS

We sponsor three defined benefit pension plans for active employees and offer certain postretirement benefits for retirees.  A summary of each of these is presented below.

Retirement Plan

RTI sponsors the Morrison Restaurants Inc. Retirement Plan (the “Retirement Plan”).  Effective December 31, 1987, the Retirement Plan was amended so that no additional benefits would accrue and no new participants may enter the Retirement Plan after that date.  Participants receive benefits based upon salary and length of service.

Minimum funding for the Retirement Plan is determined in accordance with the guidelines set forth in employee benefit and tax laws.  From time to time we may contribute additional amounts as we deem appropriate.  We estimate that we will be required to make contributions totaling $0.2 million to the Retirement Plan during the remainder of fiscal 2014.

Executive Supplemental Pension Plan and Management Retirement Plan

Under these unfunded defined benefit pension plans, eligible employees earn supplemental retirement income based upon salary and length of service, reduced by social security benefits and amounts otherwise receivable under other specified Company retirement plans.  Effective June 1, 2001, the Management Retirement Plan was amended so that no additional benefits would accrue and no new participants may enter the plan after that date.

Postretirement Medical and Life Benefits

Our Postretirement Medical and Life Benefits plans provide medical and life insurance benefits to certain retirees.  The medical plan requires retiree cost sharing provisions that are more substantial for employees who retire after January 1, 1990.

The following tables detail the components of net periodic benefit costs and the amounts recognized in our Condensed Consolidated Financial Statements for the Retirement Plan, Management Retirement Plan, and the Executive Supplemental Pension Plan (collectively, the “Pension Plans”) and the Postretirement Medical and Life Benefits plans (in thousands):

	Pension Benefits
	Thirteen weeks ended						Thirty-nine weeks ended
	March 4, 2014			March 5, 2013			March 4, 2014			March 5, 2013
Service cost	$	89		$	115		$	267		$	345
Interest cost		435			525			1,303			1,575
Expected return on plan assets		(111	)		(102	)		(333	)		(306	)
Amortization of prior service cost (a)		–			26			–			78
Recognized actuarial loss		427			565			1,283			1,695
Net periodic benefit cost	$	840		$	1,129		$	2,520		$	3,387

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	Postretirement Medical and Life Benefits
	Thirteen weeks ended						Thirty-nine weeks ended
	March 4, 2014			March 5, 2013			March 4, 2014			March 5, 2013
Service cost	$	4		$	3		$	10		$	9
Interest cost		16			15			50			45
Amortization of prior service cost (a)		(12	)		(14	)		(34	)		(41	)
Recognized actuarial loss		61			53			183			159
Net periodic benefit cost	$	69		$	57		$	209		$	172

(a)   Prior service costs are amortized on a straight-line basis over the average remaining service period of employees expected to receive benefits.

During the 13 and 39 weeks ended March 4, 2014 and March 5, 2013, we reclassified recognized actuarial losses and amortized prior service costs out of accumulated other comprehensive loss and into pension expense, which is included in Selling, general and administrative, net within our Condensed Consolidated Statements of Operations, as follows (in thousands):

	Thirteen weeks ended						Thirty-nine weeks ended
	March 4, 2014			March 5, 2013			March 4, 2014			March 5, 2013
Recognized actuarial loss	$	489		$	618		$	1,466		$	1,854
Amortization of prior service cost		(12	)		13			(34	)		38
		477			631			1,432			1,892
Income taxes		–			(251	)		–			(751	)
Pension liability reclassification, net of tax	$	477		$	380		$	1,432		$	1,141

We also sponsor two defined contribution retirement savings plans. Information regarding these plans is included in our Annual Report on Form 10-K for the fiscal year ended June 4, 2013.

Executive Separations and Corporate Support Services Restructuring

On June 7, 2013, our then Executive Vice President, Chief Operations Officer separated employment with the Company.  During the first quarter of fiscal 2014, we recorded severance expense of $0.9 million in connection with the separation agreement for the former executive, which represents obligations pursuant to the Ruby Tuesday, Inc. Severance Pay Plan (the “Severance Plan”) of two times base salary.  The Severance Plan was subsequently terminated on October 7, 2013.  Of the amount recorded as severance expense for our former executive, $0.5 million was paid during the first quarter of fiscal 2014, and the remaining $0.4 million was paid during the 13 weeks ended March 4, 2014 in accordance with the Severance Plan.

On October 30, 2013, our then Senior Vice President, Chief People Officer separated employment with the Company.  During the second quarter of fiscal 2014, we recorded severance expense of $0.4 million in connection with his separation agreement, an amount representing one year of his annual base salary plus his remaining vacation for fiscal 2014.  Of this amount, $0.3 million was paid during the third quarter of fiscal 2014 and the remaining amounts will be paid over two equal future installments.

On November 20, 2013 and December 11, 2013, we eliminated approximately 50 and 17 management and staff personnel, respectively, at our Restaurant Support Services Center in Maryville, Tennessee.  These reductions occurred in connection with an ongoing comprehensive review of our cost structure.  These executive and other employee separations resulted in transition-related costs during the 13 and 39 weeks ended March 4, 2014 of $0.3 million and $3.5 million, respectively, for employee severance and unused vacation.

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As of March 4, 2014, a liability of $0.9 million representing unpaid obligations in connection with the restructurings was included within Accrued liabilities: Payroll and related costs in our Condensed Consolidated Balance Sheet.  A roll forward of our obligations in connection with employee separations is as follows (in thousands):

Balance at June 4, 2013	$	310
Employee severance and unused vacation accruals		3,541
Cash payments		(2,976	)
Balance at March 4, 2014	$	875

See Note L to the Condensed Consolidated Financial Statements for discussion of the impact of executive separations to our share-based employee compensation costs.

NOTE K – INCOME TAXES

Under Accounting Standards Codification 740 (“ASC 740”), companies are required to apply their estimated annual tax rate on a year-to-date basis in each interim period.  Under ASC 740, companies should not apply the estimated annual tax rate to interim financial results if the estimated annual tax rate is not reliably predictable.  In this situation, the interim tax rate should be based on the actual year-to-date results.  Due to changes in our projections, which have fluctuated as we work through our brand repositioning, a reliable projection of our annual effective rate has been difficult to determine.  As such, we recorded a tax benefit for the first three quarters of fiscal 2014 based on the actual year-to-date results, in accordance with ASC 740.

We recorded a tax benefit from continuing operations of $0.8 million and $7.9 million for the 13- and 39-week periods ended March 4, 2014, respectively, compared to $2.0 million and $10.6 million for the 13- and 39-week periods ended March 5, 2013, respectively, to reflect the current benefit of federal and certain state net operating loss carrybacks as well as the recognition of unrecognized tax benefits.  The change in income taxes is attributable to an increase in the valuation allowance for deferred tax assets as discussed below, offset by increased pre-tax losses for the 13 and 39 weeks ending March 4, 2014 as compared to the same periods of the prior year.

We regularly evaluate the need for a valuation allowance for deferred tax assets by assessing whether it is more likely than not that we will realize the deferred tax assets in the future.  A valuation allowance assessment is performed each reporting period, with any additions or adjustments reflected in earnings in the period of assessment.  In assessing the need for a valuation allowance, we have considered both positive and negative evidence related to the likelihood of realization of the deferred tax assets for each jurisdiction.

Through the third quarter of fiscal 2013, we had concluded that objective and subjective positive evidence outweighed negative evidence, and concluded it was more likely than not to realize all of our federal and most of our state deferred tax assets, except for loss carryforwards in certain states that have had cumulative losses due to our state tax planning strategies and/or relatively short carryforward periods and annual limits on how much loss carryforward can be used to offset future taxable income.   During the fourth quarter of fiscal 2013, we recorded a valuation allowance following the conclusion that the negative evidence outweighed the positive evidence. 

Our valuation allowance totaled $50.6 million and $24.6 million as of March 4, 2014 and June 4, 2013, respectively.  Netted against our tax benefit from continuing operations for the 13- and 39-week periods ended March 4, 2014 were charges of $5.6 million and $27.5 million, respectively, representing the amount reserved for the increase in deferred tax assets during the periods which primarily related to general business credit carryforwards and state net operating loss carryforwards.

We had a liability for unrecognized tax benefits, exclusive of accrued interest and penalties, of $6.9 million and $13.0 million as of March 4, 2014 and June 4, 2013, respectively.  As of March 4, 2014 and June 4, 2013, the total amount of unrecognized tax benefits that, if recognized, would impact our effective tax rate was $2.3 million and $3.5 million, respectively.  The liability for unrecognized tax benefits as of March 4, 2014 includes $0.3 million related to tax positions for which it is reasonably possible that the total amounts could change within the next twelve months based on the outcome of examinations and negotiations with tax authorities.

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Interest and penalties related to unrecognized tax benefits are recognized as components of income tax expense.  As of March 4, 2014 and June 4, 2013, we had accrued $0.6 million and $0.9 million, respectively, for the payment of interest and penalties.  During the first 39 weeks of fiscal 2014, accrued interest and penalties decreased $0.3 million, of which $0.1 million affected the effective tax rate for the same time period.

At March 4, 2014, we are no longer subject to U.S. federal income tax examinations by tax authorities for fiscal years prior to 2011, and with few exceptions, state and local examinations by tax authorities prior to fiscal year 2011.

NOTE L – SHARE-BASED EMPLOYEE COMPENSATION

We compensate our employees and directors using share-based compensation through the following plans:

The Ruby Tuesday, Inc. Stock Incentive Plan and the Ruby Tuesday, Inc. 1996 Stock Incentive Plan

A committee, appointed by the Board of Directors, administers the Ruby Tuesday, Inc. Stock Incentive Plan (“SIP”) and the Ruby Tuesday, Inc. 1996 Stock Incentive Plan (“1996 SIP”), and has full authority in its discretion to determine the key employees, officers, and non-employee directors to whom share-based  incentives are granted and the terms and provisions of share-based incentives.  Option grants under the SIP and 1996 SIP can have varying vesting provisions and exercise periods as determined by such committee.  A majority of currently outstanding options granted under the SIP and 1996 SIP vest within three years following the date of grant and expire seven years after the date of grant.  The SIP and 1996 SIP permit the committee to make awards of shares of common stock, awards of stock options or other derivative securities related to the value of the common stock, and certain cash awards to eligible persons.  These discretionary awards may be made on an individual basis or for the benefit of a group of eligible persons.  All options awarded under the SIP and 1996 SIP have been awarded with an exercise price equal to the fair market value at the time of grant.

At March 4, 2014, we had reserved a total of 4,849,000 and 143,000 shares of common stock for the SIP and 1996 SIP, respectively.  Of the reserved shares at March 4, 2014, 1,861,000 and 77,000 were subject to options outstanding for the SIP and 1996 SIP, respectively.  Stock option exercises are settled with the issuance of new shares.  Net shares of common stock available for issuance at March 4, 2014 under the SIP and 1996 SIP were 2,988,000 and 66,000, respectively.  As discussed below, during the second quarter offiscal 2014 our shareholders approved an amendment to the SIP allowing non-employee directors to participate in the SIP.

The Ruby Tuesday, Inc. Stock Incentive and Deferred Compensation Plan for Directors

Under the Ruby Tuesday, Inc. Stock Incentive and Deferred Compensation Plan for directors (the “Directors’ Plan”), non-employee directors are eligible for awards of share-based incentives.  On October 9, 2013, our shareholders approved an amendment to the SIP allowing non-employee directors to participate in the SIP instead of requiring that such awards be made from the Directors’ Plan.  The amendment did not increase the number of shares of common stock available for issuance under the SIP.  At March 4, 2014, only an insignificant number of shares of common stock available for issuance under the Directors’ Plan remained.  All future share-based compensation granted to non-employee directors will be awarded from shares of common stock available for issuance under the SIP.  As further discussed in Note R to the Condensed Consolidated Financial Statements, the Directors’ Plan was amended and restated on April 9, 2014, primarily for the purpose of terminating those portions of the Directors’ Plan providing for the award of share-based compensation to non-employee directors.

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Stock Options

The following table summarizes our stock option activity for the 39 weeks ended March 4, 2014 under these stock option plans (in thousands, except per-share data):

	Stock Options			Weighted-Average Exercise Price
Service-based vesting:
Balance at June 4, 2013		1,911		$	8.27
Granted		601			9.34
Exercised		(244	)		6.45
Forfeited		(311	)		9.29
Balance at March 4, 2014		1,957		$	8.66
Exercisable		1,094		$	8.60
Market-based vesting:
Balance at June 4, 2013		250		$	7.81
Granted		570			9.34
Forfeited		(85	)		9.34
Balance at March 4, 2014		735		$	8.82
Exercisable		–		$	–

At March 4, 2014, there was approximately $3.2 million of unrecognized pre-tax compensation expense related to non-vested stock options.  This cost is expected to be recognized over a weighted-average period of 1.6 years.

During the first quarter of fiscal 2014, we granted 601,000 service-based stock options to certain employees under the terms of the SIP.  The stock options awarded vest in equal annual installments over a three-year period following grant of the award, and have a maximum life of seven years.

Also during the first quarter of fiscal 2014, we granted 570,000 market-based stock options to certain employees under the terms of the SIP.  The stock options vest if a share of our common stock appreciates to $14 per share or more for a period of 20 consecutive trading days on or before December 3, 2015.  The stock options have a maximum life of seven years.

Restricted Stock

The following table summarizes our restricted stock activity for the 39 weeks ended March 4, 2014 (in thousands, except per-share data):

				Weighted-Average
	Restricted			Grant-Date
	Stock			Fair Value
Performance-based vesting:
Non-vested at June 4, 2013		356		$	7.06
Granted		–			–
Vested		(18	)		7.87
Forfeited		(270	)		6.81
Non-vested at March 4, 2014		68		$	7.81
				Weighted-Average
	Restricted			Grant-Date
	Stock			Fair Value
Service-based vesting:
Non-vested at June 4, 2013		1,136		$	7.92
Granted		423			8.83
Vested		(398	)		8.12
Forfeited		(140	)		8.76
Non-vested at March 4, 2014		1,021		$	8.11

18

The fair values of the restricted share awards reflected above were based on the fair market value of our common stock on the grant date.  At March 4, 2014, unrecognized compensation expense related to restricted stock grants expected to vest totaled approximately $4.9 million and will be recognized over a weighted average vesting period of approximately 1.4 years.

During the second quarter of fiscal 2014, RTI granted approximately 60,000 restricted shares to non-employee directors under the terms of the Stock Incentive Plan.  These shares cliff vest over a one year period following grant of the award.

During the first quarter of fiscal 2014, we granted 344,000 shares of service-based restricted stock to certain employees under the terms of the SIP and 1996 SIP, 186,000 of which will cliff vest 2.5 years following the grant date and 158,000 of which will vest in three equal installments over a three-year period following the date of grant.

Also during the first quarter of fiscal 2014, the Executive Compensation Committee of the Board of Directors determined that the performance condition was not achieved for 269,000 shares of performance-based restricted stock granted in fiscal 2013.  As a result, 235,000 shares of restricted stock were cancelled and returned to the pool of shares available for grant under the SIP and 1996 SIP and 34,000 shares of restricted stock awarded to our President and Chief Executive Officer were cancelled and retired.

As discussed further in Note J to the Condensed Consolidated Financial Statements, our Executive Vice President, Chief Operations Officer, Senior Vice President, Chief People Officer, and other management personnel separated employment with the Company during the first three quarters of fiscal 2014.  Several of these individuals held share-based compensation awards at the times of their separations, and these awards were either vested or forfeited in accordance with the terms of the original awards.

Included within share-based compensation expense for the 13- and 39-week periods ended March 4, 2014 were charges that were insignificant and $0.3 million, respectively, representing the incremental costs resulting from accelerated vesting, net of forfeitures.

NOTE M – SEGMENT REPORTING

Our President and Chief Executive Officer, who is our chief operating decision maker, with the assistance of our senior management, reviews discrete financial information for both the Ruby Tuesday and Lime Fresh restaurant concepts to assess performance and allocate resources.  We consider the Ruby Tuesday and Lime Fresh concepts to be our reportable segments as we do not believe they have similar economic and other characteristics to be aggregated into a single reportable segment.  Financial results by reportable segment for the 13 and 39 weeks ended March 4, 2014 and March 5, 2013 are as follows (in thousands):

	Thirteen weeks ended					Thirty-nine weeks ended
	March 4, 2014		March 5, 2013			March 4, 2014			March 5, 2013
Revenues:
Ruby Tuesday concept	$	290,752	$	303,662		$	845,514		$	923,586
Lime Fresh concept		4,800		3,721			15,921			11,797
Total revenues	$	295,552	$	307,383		$	861,435		$	935,383
Segment profit/(loss):
Ruby Tuesday concept	$	24,139	$	31,305		$	34,860		$	77,878
Lime Fresh concept		1		(1,441	)		(4,236	)		(3,792	)
Total segment profit	$	24,140	$	29,864		$	30,624		$	74,086
Depreciation and amortization:
Ruby Tuesday concept	$	12,840	$	14,314		$	40,088		$	43,455
Lime Fresh concept		473		576			1,517			1,671
Support center and other		599		585			1,779			1,728
Total depreciation and amortization	$	13,912	$	15,475		$	43,384		$	46,854

19

Capital expenditures:
Ruby Tuesday concept	$	18,744	$	18,271
Lime Fresh concept		2,793		5,548
Support center and other		1,020		3,914
Total capital expenditures	$	22,557	$	27,733

Total assets by reportable segment as of December 3, 2013 and June 4, 2013 are as follows (in thousands):

	March 4, 2014		June 4, 2013
Total assets:
Ruby Tuesday concept	$	836,575	$	893,750
Lime Fresh concept		17,725		18,943
Support center and other		115,088		130,490
Total assets	$	969,388	$	1,043,183

The following is a reconciliation of segment profit to (loss)/income from continuing operations before taxes for the 13 and 39 weeks ended March 4, 2014 and March 5, 2013 (in thousands):

	Thirteen weeks ended						Thirty-nine weeks ended
	March 4, 2014			March 5, 2013			March 4, 2014			March 5, 2013
Segment profit	$	24,140		$	29,864		$	30,624		$	74,086
Less:
Depreciation and amortization		(13,912	)		(15,475	)		(43,384	)		(46,854	)
Unallocated selling, general and
administrative expenses		(11,551	)		(4,440	)		(37,208	)		(12,691	)
Preopening expenses		–			(237	)		(395	)		(636	)
Trademark impairment		(855	)		–			(855	)		–
Interest expense, net		(5,967	)		(6,591	)		(19,340	)		(20,146	)
Other expense, net		(55	)		(420	)		(1,341	)		(807	)
(Loss)/income from continuing
operations before income taxes	$	(8,200	)	$	2,701		$	(71,899	)	$	(7,048	)

NOTE N – COMMITMENTS AND CONTINGENCIES

Litigation

We are presently, and from time to time, subject to pending claims and lawsuits arising in the ordinary course of business.  We provide reserves for such claims when payment is probable and estimable in accordance with GAAP.  At this time, in the opinion of management, the ultimate resolution of pending legal proceedings, including the matters referred to below, will not have a material adverse effect on our operations, financial position, or cash flows.

On April 17, 2012, a wage and hour case styled Guttentag, et al vs. Ruby Tuesday, Inc. was filed in the United States District Court, Southern District of New York.  The named plaintiffs, and five additional former employees who have joined the suit as opt-in plaintiffs, allege that the Company violated the Fair Labor Standards Act and state wage and hour laws in New York and Florida.  Plaintiffs filed their motion for conditional certification on March 8, 2013, which sought a nationwide putative class of all current and former servers, bartenders, and food runners who worked for the Company for the three-year period prior to the filing of the lawsuit.  On June 11, 2013, the court entered an order granting conditional certification of the nationwide class requested by plaintiffs, but for the time frame of June 11, 2010 to the present.  Notice of the lawsuit and the right to opt-in was mailed to the putative class members in November 2013, and approximately 5%, or about 4,150 of the putative class members, filed consents to opt-in.  The parties have been engaged in mediation and continued settlement discussions in an effort to reach a mutually agreeable resolution.  These efforts continue on an ongoing basis, with a goal of entering into a final settlement agreement that can be presented to the Court for review and approval.  

On September 30, 2009, an age discrimination case styled Equal Employment Opportunity Commission (Pittsburgh) v. Ruby Tuesday, Inc. (the “EEOC Lawsuit”), was filed in the United States District Court for the Western District of Pennsylvania (the “Court”).  The U.S. Equal Employment Opportunity Commission (“EEOC”) Pittsburgh Area Office alleged in the suit that the Company violated the Age Discrimination in Employment Act (“ADEA”) by failing to hire employees within the protected age group in five

20

Pennsylvania restaurants and one Ohio restaurant.  On December 9, 2013, the Court approved a consent decree entered into between the EEOC and the Company in Civil Action No. 09-1330.  Without any admission of liability, the Company agreed to make five equal monthly payments totaling $575,000 into a qualified settlement account, the fifth and last of which will be made in May 2014.  Individuals aged 40 or older who applied for a position at one of the six restaurants from January 1, 2005 through the date of the decree may apply to receive an amount from the settlement account.  The Company also agreed to make efforts to recruit and hire more individuals aged 40 or older at the three restaurants involved in the litigation that are currently open.  Civil Action 09-1330 is closed, subject to the Court’s continuing jurisdiction over the consent decree.

Not closed, but inactive (as far as we are aware), is the EEOC’s Notice of an ADEA Directed Investigation (“DI”), regarding potential age discrimination in violation of the ADEA in hiring and discharge for all positions at all other restaurants in the United States.  On April 30, 2013, the Court entered an order terminating a miscellaneous action filed by the EEOC in furtherance of the DI.   We do not believe that the DI will have a material adverse effect on our operations, financial position, or cash flows.

NOTE O – FAIR VALUE MEASUREMENTS

The following table presents the fair values of our financial assets and liabilities measured at fair value on a recurring basis and the level within the fair value hierarchy in which the measurements fall (in thousands):

	Level	March 4,   2014			June 4, 2013
Deferred compensation plan: other investments – Assets	1	$	9,006		$	8,721
Deferred compensation plan: other investments – Liabilities	1		(9,006	)		(8,721	)
Deferred compensation plan: RTI common stock – Equity	1		500			1,094
Deferred compensation plan: RTI common stock – Equity	1		(500	)		(1,094	)
Total		$	–		$	–

During the 39 weeks ended March 4, 2014 there were no transfers among levels within the fair value hierarchy.

The Ruby Tuesday, Inc. 2005 Deferred Compensation Plan (the “Deferred Compensation Plan”) and the Ruby Tuesday, Inc. Restated Deferred Compensation Plan (the “Predecessor Plan”) are unfunded, non-qualified deferred compensation plans for eligible employees.  Assets earmarked to pay benefits under the Deferred Compensation Plan and Predecessor Plan are held by a rabbi trust.  We report the accounts of the rabbi trust in our Condensed Consolidated Financial Statements.  The investments held by these plans are reported at fair value based on third-party broker statements.  The realized and unrealized holding gains and losses related to these investments, as well as the offsetting compensation expense, is recorded in Selling, general and administrative expense in the Condensed Consolidated Financial Statements.

The following table presents the fair values for those assets and liabilities measured on a non-recurring basis and remaining on our Condensed Consolidated Balance Sheets as of March 4, 2014 and June 4, 2013 (in thousands):

	Fair Value Measurements
	Level	March 4, 2014		June 4, 2013
Long-lived assets held for sale *	2	$	23,299	$	24,006
Long-lived assets held for use	2		7,992		5,802
Total		$	31,291	$	29,808

* Included in the carrying value of long-lived assets held for sale as of March 4, 2014 and June 4, 2013 are $16.7 million and $14.8 million, respectively, of assets included in Construction in progress in the Condensed Consolidated Balance Sheets as we do not expect to sell these assets within the next 12 months.

The following table presents the losses recognized during the 13 and 39 weeks ended March 4, 2014 and March 5, 2013 resulting from fair value measurements of assets and liabilities measured on a non-recurring basis.  The losses associated with continuing operations are included in Closures and impairments, net and the losses associated with discontinued operations are included in Loss from discontinued operations in our Condensed Consolidated Statements of Operations and Comprehensive (Loss)/Income (in thousands):

21

	Thirteen weeks ended				Thirty-nine weeks ended
	March 4, 2014		March 5, 2013		March 4, 2014		March 5, 2013
Included within continuing operations
Long-lived assets held for sale	$	142	$	543	$	726	$	1,054
Long-lived assets held for use		3,621		–		20,285		2,149
	$	3,763	$	543	$	21,011	$	3,203
Included within discontinued operations	$	25	$	1,669	$	178	$	17,971

Long-lived assets held for sale are valued using Level 2 inputs, primarily representing information obtained through broker listings and sales agreements.  Costs to market and/or sell the assets are factored into the estimates of fair value for those assets included in Assets held for sale on our Condensed Consolidated Balance Sheets.

We review our long-lived assets (primarily property, equipment, and, as appropriate, reacquired franchise rights and favorable leases) related to each restaurant to be held and used in the business, whenever events or changes in circumstances indicate that the carrying amount of the long-lived asset may not be recoverable.

Long-lived assets held for use presented in the table above include restaurants or groups of restaurants that we have impaired.  From time to time, this will also include closed restaurants or surplus sites that do not meet the held for sale criteria that we have offered for sale at a price less than carrying value.

The Level 2 fair values of our long-lived assets held for use are based on broker estimates of the value of the land, building, leasehold improvements, and other residual assets.

Our financial instruments at March 4, 2014 and June 4, 2013 consisted of cash and cash equivalents, accounts receivable and payable, long-term debt, and letters of credit.  The fair values of cash and cash equivalents and accounts receivable and payable approximated carrying value because of the short-term nature of these instruments.  The carrying amounts and fair values of our other financial instruments not measured on a recurring basis using fair value, however subject to fair value disclosures, are as follows (in thousands):

	March 4, 2014		June 4, 2013
	Carrying Amount	Fair Value	Carrying Amount	Fair Value
Long-term debt and capital leases	$  266,873	$  248,214	$  299,002	$  310,441
Letters of credit	–	405	–	270

We estimated the fair value of debt and letters of credit using market quotes and present value calculations based on market rates.

NOTE P – SUPPLEMENTAL CONDENSED CONSOLIDATING FINANCIAL STATEMENTS

As discussed in Note H to the Consolidated Financial Statements, the Senior Notes are a liability of Ruby Tuesday, Inc. (the “Parent”) and are guaranteed on a senior unsecured basis by our existing and future domestic restricted subsidiaries, subject to certain exceptions (the “Guarantors”).  Each of the Guarantors is wholly-owned by Ruby Tuesday, Inc.  None of the few remaining subsidiaries of Ruby Tuesday, Inc., which were primarily created to hold liquor license assets, guarantee the Senior Notes (the “Non-Guarantors”).  Our Non-Guarantor subsidiaries are immaterial and are aggregated within the Parent information disclosed below.

The following condensed consolidating financial information, which has been prepared in accordance with the requirements for presentation of Rule 3-10(f) of Regulation S-X promulgated by the Securities and Exchange Commission, presents the condensed consolidating financial information separately for the Parent, the Guarantors, and elimination entries necessary to consolidate the Parent and Guarantors.  Investments in wholly-owned subsidiaries are accounted for using the equity method for purposes of the consolidated presentation.  The principal elimination entries eliminate investments in subsidiaries and intercompany balances and transactions.

22

Condensed Consolidating Balance Sheet

As of March 4, 2014

(In thousands)

	Parent			Guarantors			Eliminations				Consolidated
Assets
Current assets:
Cash and cash equivalents	$	44,134			$	340		$	–			$	44,474
Accounts receivable		2,368				2,676			–				5,044
Inventories		16,092				6,648			–				22,740
Income tax receivable		133,739				–			(129,498	)			4,241
Deferred income taxes		455				3,842			–				4,297
Other current assets		16,856				3,280			–				20,136
Total current assets		213,644				16,786			(129,498	)			100,932
Property and equipment, net		598,601				209,727			–				808,328
Investment in subsidiaries		153,842				–			(153,842	)			–
Due from/(to) subsidiaries		89,095				240,271			(329,366	)			–
Other assets		47,140				12,988			–				60,128
Total assets	$	1,102,322			$	479,772		$	(612,706	)		$	969,388
Liabilities & Shareholders’ Equity
Current liabilities:
Accounts payable	$	23,922			$	5,504		$	–			$	29,426
Accrued and other current liabilities		50,843				37,068			–				87,911
Current maturities of long-term debt,
including capital leases		(348	)			5,117			–				4,769
Income tax payable		–				129,498			(129,498	)			–
Total current liabilities		74,417				177,187			(129,498	)			122,106
Long-term debt and capital leases,
less current maturities		219,981				42,123			–				262,104
Deferred income taxes		(1,399	)			3,842			–				2,443
Due to/(from) subsidiaries		240,271				89,095			(329,366	)			–
Other deferred liabilities		107,840				13,683			–				121,523
Total liabilities		641,110				325,930			(458,864	)			508,176
Shareholders’ equity:
Common stock		614				–			–				614
Capital in excess of par value		74,470				–			–				74,470
Retained earnings		395,640				153,842			(153,842	)			395,640
Accumulated other comprehensive loss		(9,512	)			–			–				(9,512	)
Total shareholders’ equity		461,212				153,842			(153,842	)			461,212
Total liabilities & shareholders’ equity	$	1,102,322			$	479,772		$	(612,706	)		$	969,388

23

Condensed Consolidating Balance Sheet

As of June 4, 2013

(In thousands)

	Parent				Guarantors			Eliminations				Consolidated
Assets
Current assets:
Cash and cash equivalents		$	52,635			$	272		$	–			$	52,907
Accounts receivable			1,854				2,980			–				4,834
Inventories			21,961				8,911			–				30,872
Income tax receivable			118,329				–			(116,429	)			1,900
Deferred income taxes			5,372				1,924			–				7,296
Other current assets			19,519				3,836			–				23,355
Total current assets			219,670				17,923			(116,429	)			121,164
Property and equipment, net			635,478				224,352			–				859,830
Investment in subsidiaries			167,887				–			(167,887	)			–
Due from/(to) subsidiaries			76,485				230,583			(307,068	)			–
Other assets			46,812				15,377			–				62,189
Total assets		$	1,146,332			$	488,235		$	(591,384	)		$	1,043,183
Liabilities & Shareholders’ Equity
Current liabilities:
Accounts payable		$	11,725			$	3,239		$	–			$	14,964
Accrued and other current liabilities			47,775				34,406			–				82,181
Current maturities of long-term debt,
including capital leases			(347	)			8,834			–				8,487
Income tax payable			–				116,429			(116,429	)			–
Total current liabilities			59,153				162,908			(116,429	)			105,632
Long-term debt and capital leases,
less current maturities			232,462				58,053			–				290,515
Deferred income taxes			(1,070	)			6,823			–				5,753
Due to/(from) subsidiaries			230,583				76,485			(307,068	)			–
Other deferred liabilities			108,369				16,079			–				124,448
Total liabilities			629,497				320,348			(423,497	)			526,348
Shareholders’ equity:
Common stock			612				–			–				612
Capital in excess of par value			67,596				–			–				67,596
Retained earnings			459,572				167,887			(167,887	)			459,572
Accumulated other comprehensive loss			(10,945	)			–			–				(10,945
Total shareholders’ equity			516,835				167,887			(167,887	)			516,835
Total liabilities & shareholders’ equity		$	1,146,332			$	488,235		$	(591,384	)		$	1,043,183

24

Condensed Consolidating Statement of Operations and

Comprehensive (Loss)/Income

For the Thirteen Weeks Ended March 4, 2014

(In thousands)

	Parent			Guarantors			Eliminations			Consolidated
Revenue:
Restaurant sales and operating revenue	$	212,249		$	81,715		$	–		$	293,964
Franchise revenue		63			1,525			–			1,588
		212,312			83,240			–			295,552
Operating costs and expenses:
Cost of merchandise		58,550			22,430			–			80,980
Payroll and related costs		71,742			29,609			–			101,351
Other restaurant operating costs		46,765			17,396			–			64,161
Depreciation		9,787			3,540			–			13,327
Selling, general, and administrative		16,532			16,808			–			33,340
Intercompany selling, general, and
administrative allocations		14,908			(14,908	)		–			–
Closures and impairments		2,407			1,364			–			3,771
Trademark impairment		–			855			–			855
Equity in earnings of subsidiaries		(8,886	)		–			8,886			–
Interest expense, net		5,089			878			–			5,967
Intercompany interest expense/(income)		3,274			(3,274	)		–			–
		220,168			74,698			8,886			303,752
(Loss)/income from continuing operations
before income taxes		(7,856	)		8,542			(8,886	)		(8,200	)
Benefit for income taxes from
continuing operations		(463	)		(344	)		–			(807	)
(Loss)/income from continuing operations		(7,393	)		8,886			(8,886	)		(7,393	)
Income from discontinued operations, net of tax		86			–			–			86
Net (loss)/income	$	(7,307	)	$	8,886		$	(8,886	)	$	(7,307	)
Other comprehensive income:
Pension liability reclassification, net of tax		477			–			–			477
Total comprehensive (loss)/income	$	(6,830	)	$	8,886		$	(8,886	)	$	(6,830	)

25

Condensed Consolidating Statement of Operations and

Comprehensive (Loss)/Income

For the Thirty-Nine Weeks Ended March 4, 2014

(In thousands)

	Parent			Guarantors			Eliminations			Consolidated
Revenue:
Restaurant sales and operating revenue	$	621,181		$	235,594		$	–		$	856,775
Franchise revenue		182			4,478			–			4,660
		621,363			240,072			–			861,435
Operating costs and expenses:
Cost of merchandise		173,397			65,190			–			238,587
Payroll and related costs		214,633			86,968			–			301,601
Other restaurant operating costs		141,660			55,324			–			196,984
Depreciation		30,359			11,092			–			41,451
Selling, general, and administrative		68,250			39,136			–			107,386
Intercompany selling, general, and
administrative allocations		43,679			(43,679	)		–			–
Closures and impairments		15,630			10,317			–			25,947
Trademark impairment		–			855			–			855
Equity in earnings of subsidiaries		(13,307	)		–			13,307			–
Interest expense, net		15,320			4,020			–			19,340
Intercompany interest expense/(income)		9,688			(9,688	)		–			–
Loss on extinguishment of debt		1,183			–			–			1,183
		700,492			219,535			13,307			933,334
(Loss)/income from continuing operations
before income taxes		(79,129	)		20,537			(13,307	)		(71,899	)
(Benefit)/provision for income taxes from
continuing operations		(15,100	)		7,230			–			(7,870	)
(Loss)/income from continuing operations		(64,029	)		13,307			(13,307	)		(64,029	)
Income from discontinued operations, net of tax		97			–			–			97
Net (loss)/income	$	(63,932	)	$	13,307		$	(13,307	)	$	(63,932	)
Other comprehensive income:
Pension liability reclassification, net of tax		1,432			–			–			1,432
Total comprehensive (loss)/income	$	(62,500	)	$	13,307		$	(13,307	)	$	(62,500	)

26

Condensed Consolidating Statement of Operations and

Comprehensive (Loss)/Income

For the Thirteen Weeks Ended March 5, 2013

(In thousands)

	Parent			Guarantors			Eliminations			Consolidated
Revenue:
Restaurant sales and operating revenue	$	221,316		$	84,519		$	–		$	305,835
Franchise revenue		25			1,523			–			1,548
		221,341			86,042			–			307,383
Operating costs and expenses:
Cost of merchandise		60,626			23,169			–			83,795
Payroll and related costs		74,802			30,562			–			105,364
Other restaurant operating costs		44,242			17,704			–			61,946
Depreciation		10,751			3,863			–			14,614
Selling, general, and administrative		19,747			10,529			–			30,276
Intercompany selling, general, and
administrative allocations		16,761			(16,761	)		–			–
Closures and impairments		1,235			861			–			2,096
Equity in earnings of subsidiaries		(12,369	)		–			12,369			–
Interest expense, net		5,195			1,396			–			6,591
Intercompany interest expense/(income)		3,482			(3,482	)		–			–
		224,472			67,841			12,369			304,682
(Loss)/income from continuing operations
before income taxes		(3,131	)		18,201			(12,369	)		2,701
(Benefit)/provision for income taxes from
continuing operations		(7,847	)		5,832			–			(2,015	)
Income from continuing operations		4,716			12,369			(12,369	)		4,716
Loss from discontinued operations, net of tax		(2,520	)		(158	)		158			(2,520	)
Net income	$	2,196		$	12,211		$	(12,211	)	$	2,196
Other comprehensive income:
Pension liability reclassification, net of tax		380			–			–			380
Total comprehensive income	$	2,576		$	12,211		$	(12,211	)	$	2,576

27

Condensed Consolidating Statement of Operations and

Comprehensive (Loss)/Income

For the Thirty-Nine Weeks Ended March 5, 2013

(In thousands)

	Parent			Guarantors			Eliminations			Consolidated
Revenue:
Restaurant sales and operating revenue	$	675,501		$	255,198		$	–		$	930,699
Franchise revenue		159			4,525			–			4,684
		675,660			259,723			–			935,383
Operating costs and expenses:
Cost of merchandise		184,827			69,678			–			254,505
Payroll and related costs		222,481			90,806			–			313,287
Other restaurant operating costs		137,844			55,604			–			193,448
Depreciation		32,623			11,680			–			44,303
Selling, general, and administrative		73,737			38,086			–			111,823
Intercompany selling, general, and
administrative allocations		51,245			(51,245	)		–			–
Closures and impairments		4,210			864			–			5,074
Equity in earnings of subsidiaries		(33,835	)		–			33,835			–
Interest expense, net		15,836			4,310			–			20,146
Gain on extinguishment of debt		(155	)		–			–			(155	)
Intercompany interest expense/(income)		10,304			(10,304	)		–			–
		699,117			209,479			33,835			942,431
(Loss)/income from continuing operations
before income taxes		(23,457	)		50,244			(33,835	)		(7,048	)
(Benefit)/provision for income taxes from
continuing operations		(27,043	)		16,409			–			(10,634	)
Income from continuing operations		3,586			33,835			(33,835	)		3,586
Loss from discontinued operations, net of tax		(13,859	)		(810	)		810			(13,859	)
Net income/(loss)	$	(10,273	)	$	33,025		$	(33,025	)	$	(10,273	)
Other comprehensive income:
Pension liability reclassification, net of tax		1,141			–			–			1,141
Total comprehensive income	$	(9,132	)	$	33,025		$	(33,025	)	$	(9,132	)

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Condensed Consolidating Statement of Cash Flows

For the Thirty-Nine Weeks Ended March 4, 2014

(In thousands)

	Parent			Guarantors			Eliminations			Consolidated
Net cash (used)/provided by operating activities	$	(4,304	)	$	51,122		$	(17,664	)	$	29,154
Investing activities:
Purchases of property and equipment		(16,855	)		(5,702	)		–			(22,557	)
Proceeds from sale-leaseback transactions, net		5,637			–			–			5,637
Proceeds from disposal of assets		9,926			1,023			–			10,949
Other, net		842			–			–			842
Net cash used by investing activities		(450	)		(4,679	)		–			(5,129	)
Financing activities:
Principal payments on long-term debt		(12,958	)		(19,023	)		–			(31,981	)
Stock repurchases		(579	)		–			–			(579	)
Payments for debt issuance costs		(1,758	)		–			–			(1,758	)
Proceeds from exercise of stock options		1,576			–			–			1,576
Excess tax benefits from share-based
compensation		284			–			–			284
Intercompany transactions		9,688			(27,352	)		17,664			–
Net cash used by financing activities		(3,747	)		(46,375	)		17,664			(32,458	)
(Decrease)/increase in cash and cash equivalents		(8,501	)		68			–			(8,433	)
Cash and cash equivalents:
Beginning of year		52,635			272			–			52,907
End of quarter	$	44,134		$	340		$	–		$	44,474

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Condensed Consolidating Statement of Cash Flows

For the Thirty-Nine Weeks Ended March 5, 2013

(In thousands)

	Parent			Guarantors			Eliminations			Consolidated
Net cash (used)/provided by operating activities	$	(5,902	)	$	47,396		$	(26,040	)	$	15,454
Investing activities:
Purchases of property and equipment		(23,480	)		(4,253	)		–			(27,733	)
Proceeds from sale-leaseback transactions, net		38,872			–			–			38,872
Proceeds from disposal of assets		2,875			2,576			–			5,451
Other, net		416			–			–			416
Net cash provided/(used) by investing activities		18,683			(1,677	)		–			17,006
Financing activities:
Principal payments on long-term debt		(10,971	)		(9,329	)		–			(20,300	)
Stock repurchases		(30,149	)		–			–			(30,149	)
Proceeds from exercise of stock options		1,478			–			–			1,478
Excess tax benefits from share-based
Compensation		87			–			–			87
Intercompany transactions		10,305			(36,345	)		26,040			–
Net cash used by financing activities		(29,250	)		(45,674	)		26,040			(48,884	)
Decrease in cash and cash equivalents		(16,469	)		45			–			(16,424	)
Cash and cash equivalents:
Beginning of year		47,986			198			–			48,184
End of quarter	$	31,517		$	243		$	–		$	31,760

NOTE Q – RECENTLY ISSUED ACCOUNTING PRONOUNCEMENTS

Accounting Pronouncements Not Yet Adopted

In July 2013, the Financial Accounting Standards Board issued Accounting Standards Update (“ASU”) No. 2013-11, “Income Taxes (Topic 740): Presentation of an Unrecognized Tax Benefit When a Net Operating Loss Carryforward, a Similar Tax Loss, or a Tax Credit Carryforward Exists” (“ASU 2013-11”).  The guidance requires an entity to present its unrecognized tax benefits net of its deferred tax assets when settlement in this manner is available under the tax law, which would be based on facts and circumstances as of the balance sheet reporting date and would not consider future events.  Gross presentation in the notes to the financial statements will still be required.  ASU 2013-11 will apply on a prospective basis to all unrecognized tax benefits that exist at the effective date, with the option to apply it retrospectively.  The guidance is effective for fiscal years, and interim periods within those years, beginning after December 15, 2013 (our fiscal 2015 first quarter).  While the adoption of ASU 2013-11 will not have an impact on our results of operations or cash flows, we are currently evaluating the impact of presenting unrecognized tax benefits net of our deferred tax assets where applicable on our Condensed Consolidated Balance Sheets.

NOTE R – SUBSEQUENT EVENTS

Amendment and Restatement of Directors’ Plan

On April 9, 2014, the Ruby Tuesday, Inc. Board of Directors adopted a resolution amending and restating the Directors’ Plan to terminate those portions of the plan providing for the award of share-based compensation to non-employee directors but preserving the deferred compensation component of the plan.  The amendment and restatement also changes the name of the Directors’ Plan to the Ruby Tuesday, Inc. Deferred Compensation Plan for Directors.  All remaining shares of common stock available for issuance under the Directors’ Plan, which were insignificant as of the date of the resolution, were released and will not be reserved for any future purpose.  As previously stated in Note L to the Condensed Consolidated Financial Statements, all future share-based compensation granted to non-employee directors will be awarded from shares of common stock available for issuance under the SIP.

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ITEM 2.  MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND

RESULTS OF OPERATIONS

The discussion and analysis below for the Company should be read in conjunction with the unaudited Condensed Consolidated Financial Statements and the notes to such financial statements included elsewhere in this Quarterly Report on Form 10-Q.  The discussion below contains forward-looking statements which should be read in conjunction with the “Special Note Regarding Forward-Looking Information” included elsewhere in this Quarterly Report on Form 10-Q.

General:

Ruby Tuesday, Inc., including its wholly-owned subsidiaries (“RTI,” the “Company,” “we” and/or “our”), owns and operates Ruby Tuesday® casual dining and Lime Fresh Mexican Grill® (“Lime Fresh”) fast casual restaurants.  As of March 4, 2014, we owned and operated 679, and franchised 76, Ruby Tuesday restaurants.  Ruby Tuesday restaurants can now be found in 45 states, the District of Columbia, 11 foreign countries, and Guam.

As of March 4, 2014, there were 20 Company-owned and operated Lime Fresh restaurants, as well as six domestic and two international Lime Fresh restaurants operated by franchisees.

Overview and Strategies

Casual dining, the segment of the industry in which we operate, is intensely competitive with respect to prices, services, convenience, locations, employees, advertising and promotion, and the types and quality of food.  We compete with other food service operations, including locally-owned restaurants, and other national and regional restaurant chains that offer similar types of services and products as we do.  While we are in the bar and grill sector as a result of our varied menu, we strive to operate at the higher-end of casual dining in terms of the quality of our food and service.  We continue to believe there are  opportunities to grow our business, strengthen our competitive position, enhance our profitability, and create value through the execution of the following strategies:

Enhance Sales and Margins Through Repositioning of Our Core Brand

In an effort to stabilize and increase customer traffic, same-restaurant sales, and profitability, we are in the process of implementing a brand transformation plan to reposition the Ruby Tuesday concept as more casual, approachable, and energetic, as well as more broadly appealing and appropriate for a wider range of dining occasions.  This repositioning is supported by four pillars: core menu transformation, service, atmosphere, and communication.  Current initiatives include the introduction of new menu platforms with broadened price points intended to provide a more compelling value, music soundscape upgrades, lighting improvements, and new television advertising designed to more effectively showcase the Ruby Tuesday brand personality in a fresh and energetic way.  Our marketing strategy historically has primarily focused on print promotions, digital media and local marketing programs, with a minimal amount spent on television.  However, in recent quarters we have deployed a more balanced marketing program comprised of a mixture of network and national cable television advertising supported with direct mail and other print and electronic promotions.  We believe that having a more lively and approachable perception of our restaurants, communicated through television advertising in tandem with a more balanced approach on our promotional strategies will position us for improvements in same-restaurant sales in the future from repeat and new customers.

Focus on Low-Capital Intensive Potential Growth in the Fast Casual Sector

We have been focused on growing our Company in a low-capital intensive manner through Lime Fresh, our Mexican fast casual concept.  We initially opened Lime Fresh restaurants under a licensing agreement and, after over a year of experience that enabled us to better understand the concept’s positioning and potential in the high-quality fast casual segment, we acquired the business for $24.1 million in the fourth quarter of fiscal 2012 since we believed we could more effectively grow the concept if we owned it.  The fast casual segment of our industry is a growing segment where demand has historically exceeded supply, and we believe opening smaller, inline locations under the Lime Fresh brand provides a low-capital intensive potential growth option for us.  While the concept is still in its early stages, we believe it has the potential to generate attractive returns for us if we are able to realize our revenue and profitability targets.  We opened four Company-owned Lime Fresh restaurants during the 39 weeks ended March 4, 2014.

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Strengthen our Balance Sheet to Facilitate Growth and Value Creation

During the second quarter of fiscal 2014 we closed on a new $50.0 million revolving Senior Credit Facility (as defined below) which replaced our previous $200.0 million revolving credit facility.  Our new Senior Credit Facility, which is secured by substantially all of the shares of capital stock of the Company’s subsidiaries, real property, improvements and fixtures of 49 Ruby Tuesday restaurants, and substantially all of the personal property of the Company and each of its present and future subsidiaries, provides us with more covenant flexibility than our previous revolving credit facility.  The Senior Credit Facility has a $35.0 million accordion feature which provides us with additional liquidity if needed.  The $50.0 million revolving Senior Credit Facility has remained undrawn.

Our balance sheet is supported by a high-quality portfolio of owned real estate, and during fiscal 2012 we commenced a sale-leaseback program on a portion of our properties for three primary reasons.  First, the program enabled us through a series of transactions to corroborate the estimated market value of our entire remaining real estate portfolio for both our equity and debt holders.  Second, the program enabled us to generate excess cash during fiscal 2013, when our free cash flow was at lower levels, in order to opportunistically pay off debt and repurchase our shares, which we would have been unable to do absent the sale-leaseback transactions.  Third, we were able to complete the sale-leaseback transactions at low capitalization rates with minimal tax leakage.

Our sale-leaseback program, which was completed during the first quarter of fiscal 2014, enabled us to raise approximately $82.5 million of gross proceeds through monetizing 37 restaurants during the entire program tenure, with $5.9 million of these proceeds being realized during fiscal 2014 through the monetization of three restaurants.  The $82.5 million of sale-leaseback gross proceeds were utilized for general corporate purposes, including capital expenditures, debt reduction, and the repurchase of shares of our common stock.  We have no plans at this time to pursue any additional sale-leaseback transactions.  See further discussion of our sale-leaseback transactions in the Investing Activities section of this Management’s Discussion and Analysis of Financial Condition and Results of Operations (“MD&A”).

Our objective over the next several years is to continue to reduce outstanding debt levels in order to lower our leverage and focus on prudent restaurant development.  Our success in the key strategic initiatives outlined above should enable us to improve both our return on assets and return on equity, and to create additional shareholder value.

Results of Operations:

The following is an overview of our results of operations for the 13- and 39-week periods ended March 4, 2014:

Net loss was $7.3 million for the 13 weeks ended March 4, 2014 compared to net income of $2.2 million for the same quarter of the previous year.  Diluted loss per share for the fiscal quarter ended March 4, 2014 was $0.12 compared to diluted earnings per share of $0.04 for the corresponding quarter of the prior year as a result of the increase in net loss as discussed below.

During the 13 weeks ended March 4, 2014:

·   Incurred severance, payroll tax, and other charges of $0.5 million in connection with the elimination of approximately 18 positions at our Restaurant Support Services Center;

·   24 Company-owned Ruby Tuesday restaurants were closed;

·   One Company-owned Lime Fresh restaurant was closed;

·   Two franchised Ruby Tuesday restaurants were opened and two were closed; and

·   Same-restaurant sales* at Company-owned Ruby Tuesday restaurants decreased 1.9%, while same-restaurant sales at domestic franchise Ruby Tuesday restaurants decreased 2.2%.

Net loss increased to $63.9 million for the 39 weeks ended March 4, 2014 compared to $10.3 million for the same period of the previous year.  Diluted loss per share for the 39 weeks ended March 4, 2014 was $1.06 compared to $0.16 for the corresponding period of the prior year as a result of the increase in net loss as discussed below.

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During the 39 weeks ended March 4, 2014:

·   Incurred severance, payroll tax, share-based compensation, and other charges of $3.1 million in connection with the elimination of approximately 71 positions since November at our Restaurant Support Services Center;

·   Four Company-owned Lime Fresh restaurants were opened and two were closed;

·   27 Company-owned Ruby Tuesday restaurants were closed;

·   Two franchised Lime Fresh restaurants were opened;

·   Four franchised Ruby Tuesday restaurants were opened and five were closed;

·   We replaced our $200.0 million credit facility with the $50.0 million Senior Credit Facility;

·   We repurchased $12.9 million of our 7.625% senior notes due 2020 (the “Senior Notes”). The repurchases settled for $13.0 million plus $0.2 of accrued interest. We realized a $0.5 million loss on these transactions;

·   We prepaid and retired 18 mortgage loan obligations for $14.9 million plus prepayment penalties of $1.1 million and accrued interest of $0.1 million;

·   Our President and Chief Executive Officer, James J. Buettgen, was appointed Chairman of the Board of Directors and Stephen Sadove was appointed Lead Director in connection with the resignation of Matthew Drapkin from the Board;

·   Our former Executive Vice President, Chief Operations Officer, Kimberly Grant, separated employment with the Company on June 7, 2013 and Todd Burrowes was appointed President – Ruby Tuesday Concept and Chief Operations Officer on June 11, 2013;

·   Our former Senior Vice President, Chief People Officer, Robert LeBoeuf, separated employment with the Company on October 30, 2013; and

·   Same-restaurant sales* at Company-owned Ruby Tuesday restaurants decreased 7.2%, while same-restaurant sales at domestic franchise Ruby Tuesday restaurants decreased 5.5%.

* We define same-restaurant sales as a year-over-year comparison of sales volumes for restaurants that, in the current year have been open at least 18 months, in order to remove the impact of new openings in comparing the operations of existing restaurants.

The following table sets forth selected restaurant operating data as a percentage of total revenue, except where otherwise noted, for the periods indicated.  All information is derived from our Condensed Consolidated Financial Statements included in this Quarterly Report on Form 10-Q.

	Thirteen weeks ended				Thirty-nine weeks ended
	March 4, 2014		March 5, 2013		March 4, 2014		March 5, 2013
Revenue:
Restaurant sales and operating revenue	99	.5%	99	.5%	99	.5%	99	.5%
Franchise revenue	0	.5	0	.5	0	.5	0	.5
Total revenue	100	.0	100	.0	100	.0	100	.0
Operating costs and expenses:
Cost of merchandise (1)	27	.5	27	.4	27	.8	27	.3
Payroll and related costs (1)	34	.5	34	.5	35	.2	33	.7
Other restaurant operating costs (1)	21	.8	20	.3	23	.0	20	.8
Depreciation (1)	4	.5	4	.8	4	.8	4	.8
Selling, general and administrative, net	11	.3	9	.8	12	.5	12	.0
Closures and impairments, net	1	.3	0	.7	3	.0	0	.5
Trademark impairment	0	.3	0	.0	0	.1	0	.0
Interest expense, net	2	.0	2	.1	2	.2	2	.2
Loss/(gain) on extinguishment of debt	0	.0	0	.0	0	.1	(0	.0)
(Loss)/income from continuing operations
before income taxes	(2	.8)	0	.9	(8	.3)	(0	.8)
Benefit for income taxes from continuing
operations	(0	.3)	(0	.7)	(0	.9)	(1	.1)
(Loss)/income from continuing operations	(2	.5)	1	.5	(7	.4)	0	.4
Income/(loss) from discontinued operations, net of tax	0	.0	(0	.8)	0	.0	(1	.5)
Net (loss)/income	(2	.5)%	0	.7%	(7	.4)%	(1	.1)%

 (1)     As a percentage of restaurant sales and operating revenue.

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The following table shows Company-owned Ruby Tuesday, Lime Fresh, and discontinued concept restaurant activity for the 13- and 39-week periods ended March 4, 2014 and March 5, 2013.

	Ruby Tuesday			Lime Fresh			Discontinued Concepts*			Total
13 weeks ended March 4, 2014
Beginning number		703			21			–			724
Opened		–			–			–			–
Closed		(24	)		(1	)		–			(25	)
Ending number		679			20			–			699
39 weeks ended March 4, 2014
Beginning number		706			18			–			724
Opened		–			4			–			4
Closed		(27	)		(2	)		–			(29	)
Ending number		679			20			–			699
13 weeks ended March 5, 2013
Beginning number		709			17			16			742
Opened		–			1			–			1
Closed		–			(2	)		(14	)		(16	)
Ending number		709			16			2			727
39 weeks ended March 5, 2013
Beginning number		714			13			14			741
Opened		–			5			2			7
Closed		(5	)		(2	)		(14	)		(21	)
Ending number		709			16			2			727

*Discontinued concepts include Marlin & Ray’s, Truffles, and Wok Hay.

The following table shows franchised Ruby Tuesday and Lime Fresh concept restaurant activity for the 13- and 39-week periods ended March 4, 2014 and March 5, 2013.

	Thirteen weeks ended			Thirty-nine weeks ended
	March 4, 2014		March 5, 2013	March 4, 2014		March 5, 2013
Ruby Tuesday
Beginning number	76		77	77		79
Opened	2		–	4		2
Closed	(2	)	–	(5	)	(4	)
Ending number	76		77	76		77

Lime Fresh
Beginning number	8	5	6	4
Opened	–	–	2	1
Closed	–	–	–	–
Ending number	8	5	8	5

Revenue

RTI’s restaurant sales and operating revenue for the 13 weeks ended March 4, 2014 decreased 3.9% to $294.0 million compared to the same period of the prior year.  This decrease is primarily the result of a 1.9% decrease in same-restaurant sales at Company-owned Ruby Tuesday restaurants coupled with a net reduction of 30 Company-owned restaurants since the third quarter of the prior fiscal year.

The decrease in Ruby Tuesday concept same-restaurant sales is primarily attributable to a decrease in customer traffic coupled with a reduction in average net check in the third quarter of fiscal 2014 compared with the same quarter of the prior year.  The decrease in average net check was a result of the rollouts

34

during the first and second quarters of the current year of our new menu items including pretzel burgers, flatbreads, and chicken tenders, which featured lower price points.

Franchise revenue for the 13 weeks ended March 4, 2014 increased 2.6% to $1.6 million compared to the same period of the prior year.  Franchise revenue is predominately comprised of domestic and international franchise royalties, which totaled $1.5 million for both 13-week periods ended March 4, 2014 and March 5, 2013.

For the 39 weeks ended March 4, 2014, sales at Company-owned restaurants decreased 7.9% to $856.8 million compared to the same period of the prior year.  This decrease is primarily the result of a 7.2% decrease in same-restaurant sales at Company-owned Ruby Tuesday restaurants coupled with a net reduction of 30 Company-owned restaurants since the third quarter of the prior fiscal year.

The decrease in Ruby Tuesday concept same-restaurant sales is primarily attributable to a decrease in customer traffic coupled with a reduction in average net check in the first three quarters of fiscal 2014 compared with the same period of the prior year.  The decrease in average net check was primarily the result of the rollouts of new menu items as discussed above which were partially offset by reduced discounts as compared to the same period of the prior year.

For the 39-week period ended March 4, 2014, franchise revenues decreased 0.5% to $4.7 million compared to the same period in the prior year.  Domestic and international royalties totaled $4.5 million for both 39-week periods ending March 4, 2014 and March 5, 2013.

Segment Profit/(Loss)

Our President and Chief Executive Officer, who is our chief operating decision maker, with the assistance of our senior management, reviews discrete financial information for both the Ruby Tuesday and Lime Fresh restaurant concepts to assess performance and allocate resources.  We consider the Ruby Tuesday and Lime Fresh concepts to be our reportable segments as we do not believe they have similar economic and other characteristics to be aggregated into a single reportable segment.  Segment profit/(loss) by reportable segment for the 13 and 39 weeks ended March 4, 2014 and March 5, 2013 are as follows (in thousands):

	Thirteen weeks ended					Thirty-nine weeks ended
	March 4, 2014		March 5, 2013			March 4, 2014			March 5, 2013
Segment profit/(loss):
Ruby Tuesday concept	$	24,139	$	31,305		$	34,860		$	77,878
Lime Fresh concept		1		(1,441	)		(4,236	)		(3,792	)
Total segment profit	$	24,140	$	29,864		$	30,624		$	74,086

Segment profit for the 13 weeks ended March 4, 2014 for the Ruby Tuesday concept decreased $7.2 million to $24.1 million compared to the third quarter of fiscal 2013 due primarily to the 1.9% decrease in same-restaurant sales at Company-owned Ruby Tuesday restaurants and a net reduction of 30 Company-owned restaurants since the third quarter of the prior year as discussed above, higher advertising spending of $3.5 million (due in part to increased cable television advertising to promote our flatbread and chicken tender menu items), increased other restaurant operating costs of $2.6 million primarily due to higher legal fees associated with the cases discussed in Note N to the Condensed Consolidated Financial Statements, and increased closures and impairments expense of $2.7 million.  These were partially offset by lower cost of merchandise ($3.2 million) and payroll and related costs ($4.3 million) compared to the same quarter of the prior year which resulted from restaurant closures and the declines in customer traffic.

Segment profit for the 13 weeks ended March 4, 2014 for the Lime Fresh concept was insignificant compared to segment losses of $1.4 million for the third quarter of fiscal 2013, due primarily to reductions in restaurant impairment charges as compared to the same quarter of the prior year.

Segment profit for the 39 weeks ended March 4, 2014 for the Ruby Tuesday concept decreased $43.0 million to $34.9 million compared to the same period of fiscal 2013 due primarily to the 7.2% decrease in same-restaurant sales at Company-owned Ruby Tuesday restaurants and restaurant closures since the prior year period as discussed above, higher closures and impairments expense ($20.0 million) as we recorded impairments in connection with the closure of 24 Ruby Tuesday restaurants during the current quarter and also recorded impairments on 27 open Ruby Tuesday restaurants not planned for closure with deteriorating

35

operational performance, and higher other restaurant operating costs ($3.9 million) primarily due to increased legal fees as previously discussed.  These were partially offset by lower cost of merchandise ($17.7 million) and payroll and related costs ($13.2 million) compared to the same 39 week period of the prior year as a result of restaurant closures and declines in customer traffic, and reductions in advertising spending of $7.7 million (primarily due to reduced television advertising).

Segment losses for the 39 weeks ended March 4, 2014 for the Lime Fresh concept increased $0.4 million compared to the same period of fiscal 2013 to $4.2 million due to increases in the lease reserve of $1.7 million related to four undeveloped sites for which a management decision was reached to forego restaurant development.  Excluding the increase to lease reserves of $1.7 million, segment losses for the Lime Fresh concept would have decreased $1.2 million as compared to the same quarter of the prior year due in part to lower impairment charges of $0.6 million and lower advertising fees of $0.5 million, due to the termination of a marketing agreement with an agency whose CEO previously sold the Lime Fresh restaurant concept to us.

The following is a reconciliation of segment profit to (loss)/income from continuing operations before taxes for the 13 and 39 weeks ended March 4, 2014 and March 5, 2013 (in thousands):

	Thirteen weeks ended						Thirty-nine weeks ended
	March 4, 2014			March 5, 2013			March 4, 2014			March 5, 2013
Segment profit	$	24,140		$	29,864		$	30,624		$	74,086
Less:
Depreciation and amortization		(13,912	)		(15,475	)		(43,384	)		(46,854	)
Unallocated selling, general and
administrative expenses		(11,551	)		(4,440	)		(37,208	)		(12,691	)
Preopening expenses		–			(237	)		(395	)		(636	)
Trademark impairment		(855	)		–			(855	)		–
Interest expense, net		(5,967	)		(6,591	)		(19,340	)		(20,146	)
Other expense, net		(55	)		(420	)		(1,341	)		(807	)
(Loss)/income from continuing
operations before income taxes	$	(8,200	)	$	2,701		$	(71,899	)	$	(7,048	)

Pre-tax (Loss)/Income from Continuing Operations

Pre-tax loss from continuing operations was $8.2 million for the 13 weeks ended March 4, 2014 compared to pre-tax income from continuing operations of $2.7 million for the same quarter of the prior year.  The higher pre-tax loss is due to a decrease in same-restaurant sales of 1.9% at Company-owned Ruby Tuesday restaurants, higher closures and impairments expense ($1.7 million), a partial impairment of the Lime Fresh trademark during the current quarter ($0.9 million), and increases, as a percentage of restaurant sales and operating revenue or total revenue, as appropriate, of cost of merchandise, other restaurant operating costs, and selling, general, and administrative, net.  These higher costs were partially offset by lower interest expense ($0.6 million) and decreases, as a percentage of restaurant sales and operating revenue, of depreciation.
 

Pre-tax loss from continuing operations increased $64.9 million to $71.9 million for the 39 weeks ended March 4, 2014, over the same quarter of the prior year.  The higher pre-tax loss is due to a decrease in same-restaurant sales of 7.2% at Company-owned Ruby Tuesday restaurants, higher closures and impairments expense ($20.9 million), a partial impairment of the Lime Fresh trademark during the current 39-week period ($0.9 million), increased losses on the extinguishment of debt ($1.3 million), and increases, as a percentage of restaurant sales and operating revenue or total revenue, as appropriate, of cost of merchandise, payroll and related costs, other restaurant operating costs, and selling, general, and administrative, net.  These higher costs were partially offset by lower interest expense ($0.8 million).

In the paragraphs that follow, we discuss in more detail the components of the increase in pre-tax loss from continuing operations for the 13- and 39-week periods ended March 4, 2014, as compared to the comparable periods in the prior year.  Because a significant portion of the costs recorded in the cost of merchandise, payroll and related costs, other restaurant operating costs, and depreciation categories are either variable or highly correlative with the number of restaurants we operate, we evaluate our trends by comparing the costs as a percentage of restaurant sales and operating revenue, as well as the absolute dollar change, to the comparable prior year period.

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Cost of Merchandise

Cost of merchandise decreased $2.8 million (3.4%) to $81.0 million for the 13 weeks ended March 4, 2014, over the corresponding period of the prior year.  As a percentage of restaurant sales and operating revenue, cost of merchandise increased from 27.4% to 27.5%.

Cost of merchandise decreased $15.9 million (6.3%) to $238.6 million for the 39 weeks ended March 4, 2014, over the corresponding period of the prior year.  As a percentage of restaurant sales and operating revenue, cost of merchandise increased from 27.3% to 27.8%.

The absolute dollar decrease for the 13-week and 39-week periods ended March 4, 2014 was the result of lower sales volumes, restaurant closures, and cost savings on certain products as a result of renegotiated contracts with certain vendors since the same periods of fiscal 2013.  These were partially offset by price increases on beef, poultry, and certain other products since the prior year.

As a percentage of restaurant sales and operating revenue, the increase in cost of merchandise for the 13 and 39 weeks ended March 4, 2014 is primarily the result of a shift in menu mix with the introduction of new menu items during the first and second quarters of fiscal 2014 and price increases in the cost of certain products.

Payroll and Related Costs

Payroll and related costs decreased $4.0 million (3.8%) to $101.4 million for the 13 weeks ended March 4, 2014, as compared to the corresponding quarter in the prior year.  As a percentage of restaurant sales and operating revenue, payroll and related costs was consistent with the prior year quarter at 34.5%.

Payroll and related costs decreased $11.7 million (3.7%) to $301.6 million for the 39 weeks ended March 4, 2014, as compared to the corresponding period in the prior year.  As a percentage of restaurant sales and operating revenue, payroll and related costs increased from 33.7% to 35.2%.

The absolute dollar decrease in payroll and related costs for the 13- and 39-week periods ended March 4, 2014 was due to lower hourly restaurant labor in connection with lower sales volumes and restaurant closures since the same periods of the prior year.  Other factors contributing to the declines included lower restaurant management labor due to a reduction in the average number of managers per restaurant in the current periods as compared to the same periods of the prior year and, for the 39-week period, lower bonus expense as fewer restaurants achieved the performance goals.  These reductions were partially offset by minimum wage increases in certain states and merit increases since the same periods of the prior year and higher health insurance for the 39-week period due to unfavorable claims experience.

As a percentage of restaurant sales and operating revenue, the increase in payroll and related costs for the 39 weeks ended March 4, 2014 is primarily the result of loss of leveraging associated with lower sales volumes.

Other Restaurant Operating Costs

Other restaurant operating costs increased $2.2 million (3.6%) to $64.2 million for the 13-week period ended March 4, 2014, as compared to the corresponding period in the prior year.  As a percentage of restaurant sales and operating revenue, these costs increased from 20.3% to 21.8%.

For the 13 weeks ended March 4, 2014, the increase in other restaurant operating costs related to the following (in thousands):

Legal	$	2,258
Repairs		369
Amortization of intangibles		(276	)
Other decreases, net		(136	)
Net increase	$	2,215

In both absolute dollars and as a percentage of restaurant sales and operating revenue for the 13-week period ended March 4, 2014, the increase in other operating costs was primarily a result of higher legal costs, primarily related to the pending litigation discussed in Note N to the Condensed Consolidated

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Financial Statements, and repairs due to building maintenance.  These increased costs were partially offset by restaurant closures since the same periods of the prior year and reduced amortization of intangibles due in part to two partial impairments of the Lime Fresh trademark since the same quarter of the prior fiscal year.

Other restaurant operating costs increased $3.5 million (1.8%) to $197.0 million for the 39-week period ended March 4, 2014, as compared to the corresponding period in the prior year.  As a percentage of restaurant sales and operating revenue, these costs increased from 20.8% to 23.0%.

For the 39 weeks ended March 4, 2014, the increase in other restaurant operating costs related to the following (in thousands):

Legal	$	3,223
Rent and leasing		1,159
Repairs		914
Insurance		790
Utilities		(1,780	)
Amortization of intangibles		(619	)
Other decreases, net		(151	)
Net increase	$	3,536

In both absolute dollars and as a percentage of restaurant sales and operating revenue for the 39-week period ended March 4, 2014, the increase in other operating costs was primarily a result of higher legal costs related to pending litigation as previously discussed, rent and leasing as a result of sale-leaseback transactions since the same periods of fiscal 2013, repairs due to building maintenance, and insurance due to favorable general liability claims experience in the prior year periods.  These increased costs were partially offset by restaurant closures since the same periods of the prior year, reduced utilities as a result of reduced rates with new contracts, and a decrease in amortization of intangibles as discussed above.

Depreciation

Depreciation expense decreased $1.3 million (8.8%) to $13.3 million for the 13-week period ended March 4, 2014, as compared to the corresponding period in the prior year.  As a percentage of restaurant sales and operating revenue, depreciation expense decreased from 4.8% to 4.5%.

Depreciation expense decreased $2.9 million (6.4%) to $41.5 million for the 39-week period ended March 4, 2014, as compared to the corresponding period in the prior year.  As a percentage of restaurant sales and operating revenue, depreciation expense was consistent with the same period of the prior year at 4.8%.

In terms of absolute dollars for the 13- and 39-week periods ended March 4, 2014 and as a percentage of restaurant sales and operating revenue for the 13-week period ended March 4, 2014, the decrease is due primarily to assets that became fully depreciated since the same periods of the prior year coupled with sale-leaseback transactions and restaurant closures.

Selling, General and Administrative Expenses, Net

Selling, general and administrative expenses, net increased $3.1 million (10.1%) to $33.3 million for the 13-week period ended March 4, 2014, as compared to the corresponding period in the prior year.

The increase for the 13-week period ended March 4, 2014 is due to higher advertising costs ($3.3 million) primarily as a result of increased cable television advertising in order to promote our newer flatbread and chicken tender menu items and higher costs associated with direct mail and other promotional activity during the current quarter compared to the same quarter of the prior year.  These increases were partially offset by lower television advertising as compared to the same quarter of fiscal 2013.

Selling, general and administrative expenses, net decreased $4.4 million (4.0%) to $107.4 million for the 39-week period ended March 4, 2014, as compared to the corresponding period in the prior year.

The decrease for the 39-week period ended March 4, 2014 is due to lower advertising costs ($8.2 million) primarily as a result of decreased television advertising and reduced direct mail and other promotional activity as compared to the same periods of fiscal 2013, which was partially offset by higher cable

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television advertising as discussed above.  The lower advertising costs were partially offset by higher general and administrative costs ($3.8 million) which was due in part to severance, share-based compensation, and other charges in connection with the separation of certain executives and the elimination of approximately 70-75 positions at our Restaurant Support Services Center during the current year.

Closures and Impairments

Closures and impairments increased $1.7 million to $3.8 million for the 13-week period ended March 4, 2014, as compared to the corresponding period of the prior year.  The increase for the 13-week period ended March 4, 2014 is primarily due to higher property impairment charges ($2.4 million) and other closing costs ($0.7 million), which were partially offset by lower closed restaurant lease reserve expense ($1.1 million) and higher gains on the sale of surplus properties ($0.3 million).

Closures and impairments increased $20.9 million to $25.9 million for the 39-week period ended March 4, 2014, as compared to the corresponding period of the prior year.  The increase for the 39-week period ended March 4, 2014 is primarily due to higher property impairment charges ($17.0 million), closed restaurant lease reserve expense ($2.8 million), and other closing costs ($0.8 million), coupled with lower gains on the sale of surplus properties ($0.3 million).

For the 39-week period ended March 4, 2014, the higher property impairment charges were due in part to the closing of 24 Ruby Tuesday concept restaurants in connection with a plan approved by the Board of Directors of Ruby Tuesday, Inc. on January 7, 2014.  Of these closures, 11 of these restaurants closed upon expiration of their lease.  As a result of the plan,included within Closures and impairments, net for the 39 weeks ended March 4, 2014 are impairment charges recognized during the second quarter of the current year of $4.4 million in connection with the early restaurant closures.  Additionally, during the 13 and 39 weeks ended March 4, 2014, we recorded impairments of $2.2 million and $12.5 million, respectively, of impairments relating to five and 27 open restaurants, respectively, with deteriorating operational performance.  See Note I to our Condensed Consolidated Financial Statements for further information on our closures and impairment charges recorded during the 13 and 39 weeks ended March 4, 2014 and March 5, 2013.

Trademark Impairment

We concluded during the third quarter of fiscal 2014 that the Lime Fresh trademark was partially impaired.  Accordingly, we recorded a non-cash charge of $0.9 million representing a partial impairment of the Lime Fresh trademark.  A previous impairment charge of $5.0 million had been recorded on the Lime Fresh trademark during the fourth quarter of fiscal 2013.  Following these impairments, the net book value of the Lime Fresh trademark remaining as of March 4, 2014 is $3.7 million.

Interest Expense, Net

Interest expense, net decreased $0.6 million to $6.0 million for the 13 weeks ended March 4, 2014, as compared to the corresponding period in the prior year, primarily due to lower interest expense on our Senior Notes due to repurchases and the early payoff of certain mortgage loans since the same quarter of the prior year.  Interest expense, net decreased $0.8 million to $19.3 million for the 39-week period ended March 4, 2014, as compared to the corresponding period in the prior year, primarily for the same reasons mentioned above.

Loss/(gain) on Extinguishment of Debt

Loss on extinguishment of debt was $1.2 million for the 39 weeks ended March 4, 2014.  We incurred a $0.7 million charge in the second quarter of fiscal 2014 relating to the write-off of the pro rata portion of unamortized debt issuance costs associated with the previous credit facility.  During the first quarter of fiscal 2014, we repurchased $12.9 million of the Senior Notes for $13.0 million plus $0.2 million of accrued interest.  We realized a $0.5 million loss on the repurchases.  We did not repurchase any of the Senior Notes during the current quarter.

Gain on extinguishment of debt was $0.2 million for the 39 weeks ended March 5, 2013.  During the second quarter of fiscal 2013, we repurchased $11.5 million of the Senior Notes for $10.9 million plus a negligible amount of accrued interest.  We did not repurchase any of the Senior Notes during the third quarter of fiscal 2013.

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Benefit for Income Taxes from Continuing Operations

Under Accounting Standards Codification 740 (“ASC 740”), companies are required to apply their estimated annual tax rate on a year-to-date basis in each interim period.  Under ASC 740, companies should not apply the estimated annual tax rate to interim financial results if the estimated annual tax rate is not reliably predictable.  In this situation, the interim tax rate should be based on the actual year-to-date results.  Due to changes in our projections, which have fluctuated as we work through our brand repositioning, a reliable projection of our annual effective rate has been difficult to determine.  As such, we recorded a tax benefit for the first three quarters quarter of fiscal 2014 based on the actual year-to-date results, in accordance with ASC 740.

We recorded a tax benefit from continuing operations of $0.8 million and $7.9 million for the 13- and 39-week periods ended March 4, 2014, respectively, compared to $2.0 million and $10.6 million for the 13- and 39-week periods ended March 5, 2013, respectively, to reflect the current benefit of federal and certain state net operating loss carrybacks as well as the recognition of unrecognized tax benefits.  The change in income taxes is attributable to an increase in the valuation allowance for deferred tax assets as discussed below, offset by increased pre-tax losses for the 13 and 39 weeks ending March 4, 2014 as compared to the same periods of the prior year.

We regularly evaluate the need for a valuation allowance for deferred tax assets by assessing whether it is more likely than not that we will realize the deferred tax assets in the future.  A valuation allowance assessment is performed each reporting period, with any additions or adjustments reflected in earnings in the period of assessment.  In assessing the need for a valuation allowance, we have considered both positive and negative evidence related to the likelihood of realization of the deferred tax assets for each jurisdiction.

Through the third quarter of fiscal 2013, we had concluded that objective and subjective positive evidence outweighed negative evidence, and concluded it was more likely than not to realize all of our federal and most of our state deferred tax assets, except for loss carryforwards in certain states that have had cumulative losses due to our state tax planning strategies and/or relatively short carryforward periods and annual limits on how much loss carryforward can be used to offset future taxable income.   During the fourth quarter of fiscal 2013, we recorded a valuation allowance following the conclusion that the negative evidence outweighed the positive evidence. 

Our valuation allowance totaled $50.6 million and $24.6 million as of March 4, 2014 and June 4, 2013, respectively.  Netted against our tax benefit from continuing operations for the 13- and 39-week periods ended March 4, 2014 were charges of $5.6 million and $27.5 million, respectively, representing the amount reserved for the increase in deferred tax assets during the periods which primarily related to general business credit carryforwards and state net operating loss carryforwards.

Discontinued Operations

In an effort to focus primarily on the successful sales turnaround of our core Ruby Tuesday concept and secondly, to improve the financial performance of our Lime Fresh concept, we closed all 13 Marlin & Ray’s restaurants, the Company’s one Wok Hay restaurant, and our two Truffles restaurants during fiscal 2013.  We have classified the results of operations of our Company-owned Marlin & Ray’s, Wok Hay, and Truffles concepts as discontinued operations for all periods presented.  The results of operations of our discontinued operations are as follows (in thousands):  

	Thirteen weeks ended						Thirty-nine weeks ended
	March 4, 2014			March 5, 2013			March 4, 2014			March 5, 2013
Restaurant sales and operating revenue	$	–		$	2,421		$	–		$	11,575
Income/(loss) before income taxes	$	77		$	(4,405	)	$	2		$	(23,172	)
Benefit for income taxes		(9	)		(1,885	)		(95	)		(9,313	)
Income/(loss) from discontinued operations	$	86		$	(2,520	)	$	97		$	(13,859	)

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Critical Accounting Policies:

Our MD&A is based upon our Condensed Consolidated Financial Statements, which have been prepared in accordance with accounting principles generally accepted in the United States of America.  The preparation of these financial statements requires us to make subjective or complex judgments that may affect the reported financial condition and results of operations.  We base our estimates on historical experience and other assumptions that we believe to be reasonable in the circumstances, the results of which form the basis for making judgments about carrying values of assets and liabilities that are not readily apparent from other sources.  Actual results may differ from these estimates under different assumptions or conditions.  We continually evaluate the information used to make these estimates as our business and the economic environment changes.

In our Annual Report on Form 10-K for the year ended June 4, 2013, we identified our critical accounting policies related to impairment of long-lived assets, income tax valuation allowances and tax accruals, segment reporting, discontinued operations, share-based employee compensation, business combinations, lease obligations, revenue recognition for franchisees, and estimated liability for self-insurance.  During the first 39 weeks of fiscal 2014, there have been no changes in our critical accounting policies.

Liquidity and Capital Resources:

Cash and cash equivalents decreased by $8.4 million and $16.4 million during the first 39 weeks of fiscal 2014 and 2013, respectively.  The change in cash and cash equivalents is as follows (in thousands):

	Thirty-nine weeks ended
	March 4, 2014			March 5, 2013
Cash provided by operating activities	$	29,154		$	15,454
Cash (used)/provided by investing activities		(5,129	)		17,006
Cash used by financing activities		(32,458	)		(48,884	)
Decrease in cash and cash equivalents	$	(8,433	)	$	(16,424	)

Operating Activities

Our cash provided by operations is generally derived from cash receipts generated by our restaurant customers and franchisees.  Substantially all of the $856.8 million and $930.7 million of restaurant sales and operating revenue disclosed in our Condensed Consolidated Statements of Operations and Comprehensive (Loss)/Income for the 39 weeks ended March 4, 2014 and March 5, 2013, respectively, was received in cash either at the point of sale or within two to four days (when our customers paid with debit or credit cards).  Our primary uses of cash for operating activities are food and beverage purchases, payroll and benefit costs, restaurant operating costs, general and administrative expenses, and marketing, a significant portion of which are incurred and paid in the same period.

Cash provided by operating activities for the first 39 weeks of fiscal 2014 increased $13.7 million (88.7%) from the corresponding period in the prior year to $29.2 million.  The increase is due primarily to increases in accounts payable, accrued, and other liabilities due to the timing of payments (approximately $24.6 million), reductions in amounts spent to acquire inventory (approximately $12.4 million) as we have suspended the advance purchasing of lobster in order to utilize the lobster that is currently on hand, decreases in amounts spent on media advertising (approximately $9.2 million), lower cash paid for income taxes ($2.4 million), and a decrease in cash paid for interest ($1.1 million) due primarily to lower interest payments on our Senior Notes due to repurchases since the same period of the prior year.  These were partially offset by lower EBITDA as a result of a 7.2% decrease in same-restaurant sales at Company-owned Ruby Tuesday concept restaurants.

Our working capital deficiency and current ratio as of March 4, 2014 were $21.2 million and 0.8:1, respectively.  As is common in the restaurant industry, we typically carry current liabilities in excess of current assets because cash (a current asset) generated from operating activities is reinvested in capital expenditures (a long-term asset), debt reduction (a long-term liability), or stock repurchases (thereby reducing equity), and receivable and inventory levels are generally not significant.

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Investing Activities

We require capital principally for the maintenance and upkeep of our existing restaurants, limited new or converted restaurant construction, investments in technology, equipment, remodeling of existing restaurants, and on occasion for the acquisition of franchisees or other restaurant concepts.  Property and equipment expenditures purchased with proceeds from disposal of assets and sale-leaseback transactions for the 39 weeks ended March 4, 2014 and March 5, 2013 were $22.6 million and $27.7 million, respectively.

During the 39 weeks ended March 4, 2014, we completed sale-leaseback transactions of the land and buildings for three Company-owned Ruby Tuesday concept restaurants for gross cash proceeds of $5.9 million, exclusive of transaction costs of approximately $0.3 million.  Equipment was not included.  Net proceeds from the sale-leaseback transactions were used for general corporate purposes, including debt payments.  See Note G to the Condensed Consolidated Financial Statements for further discussion of these transactions.

Capital expenditures for the remainder of the fiscal year are projected to be approximately $7.0 million to $10.0 million.  We intend to fund our investing activities with cash currently on hand, cash provided by operations, or borrowings on the Senior Credit Facility.

Financing Activities

Historically our primary sources of cash have been operating activities, coupled with sale-leaseback and refranchising transactions.  When these alone have not provided sufficient funds for both our capital and other needs, we have obtained funds through the issuance of indebtedness or through the issuance of additional shares of common stock.  Our current borrowings and credit facilities are described below.

On May 14, 2012, we entered into an indenture (the “Indenture”) among the Company, certain subsidiaries of the Company as guarantors and Wells Fargo Bank, National Association as trustee, governing the Company’s $250.0 million aggregate principal amount of 7.625% senior notes due 2020 (the “Senior Notes”).  The Senior Notes were issued at a discount of $3.7 million, which is being amortized using the effective interest method over the eight-year term of the notes.

The Senior Notes are guaranteed on a senior unsecured basis by our existing and future domestic restricted subsidiaries, subject to certain exceptions.  They rank equal in right of payment with our existing and future senior indebtedness and senior in right of payment to any of our future subordinated indebtedness.  The Senior Notes are effectively subordinated to all of our secured debt, including borrowings outstanding under our revolving credit facility, to the extent of the value of the assets securing such debt and structurally subordinated to all of the liabilities of our existing and future subsidiaries that do not guarantee the Senior Notes.

Interest on the Senior Notes is calculated at 7.625% per annum, payable semiannually on each May 15 and November 15 to holders of record on the May 1 or November 1 immediately preceding the interest payment date.  Accrued interest on the Senior Notes and our other long-term debt and capital lease obligations is included in Accrued liabilities – Rent and other in our Consolidated Balance Sheets.  The Senior Notes mature on May 15, 2020.

At any time prior to May 15, 2016, we may redeem the Senior Notes, in whole or in part, at a redemption price equal to 100% of the principal amount, plus an applicable “make-whole” premium and accrued and unpaid interest.  At any time on or after May 15, 2016, we may redeem the Senior Notes, in whole or in part, at the redemption prices specified in the Indenture plus accrued and unpaid interest.  At any time prior to May 15, 2015, we may redeem up to 35% of the Senior Notes from the proceeds of certain equity offerings.  There is no sinking fund for the Senior Notes.

The Indenture contains covenants that limit, among other things, our ability and the ability of certain of our subsidiaries to (i) incur or guarantee additional indebtedness; (ii) declare or pay dividends, redeem stock or make other distributions to stockholders; (iii) make certain investments; (iv) create liens or use assets as security in other transactions; (v) merge or consolidate, or sell, transfer, lease or dispose of substantially all of their assets; (vi) enter into transactions with affiliates; and (vii) sell or transfer certain assets.  These covenants are subject to a number of important exceptions and qualifications, as described in the Indenture, and certain covenants will not apply at any time when the Senior Notes are rated investment grade by the

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Rating Agencies, as defined in the Indenture.  The Indenture also provides for events of default, which, if any of them occurs, would permit or require the principal, premium, if any, interest and any other monetary obligations on all the then outstanding Senior Notes to be due and payable immediately.

Under the terms of our December 2013 four-year revolving credit agreement (the “Senior Credit Facility” discussed below) we are allowed, under certain circumstances, to repurchase up to $20.0 million of the Senior Notes in any fiscal year.  During the 39 weeks ended March 4, 2014, we repurchased $12.9 million of the Senior Notes for $13.0 million plus $0.2 million of accrued interest.  We realized losses of $0.5 million on these transactions.  The balance on the Senior Notes was $222.1 million at March 4, 2014 as a result of these repurchases.

On December 3, 2013, we entered into the Senior Credit Facility under which we may borrow up to $50.0 million with the option, subject to certain conditions, to increase the facility by up to $35.0 million.  The Senior Credit Facility, which was obtained to provide access to capital for general corporate purposes, replaced a previous five-year $200.0 million credit facility that was set to expire in December 2015.  The terms of the Senior Credit Facility provide for a $25.0 million sublimit for the issuance of standby letters of credit.  In connection with entering into the Senior Credit Facility, included within Interest expense, net and Loss/(gain) on extinguishment of debt in our Condensed Consolidated Statements of Operations and Comprehensive (Loss)/Income for the 39 weeks ended March 4, 2014 are charges of $0.7 million relating to the write-off of the pro rata portion of unamortized debt issuance costs associated with our previous credit facility.

Under the Senior Credit Facility, interest rates charged on borrowings can vary depending on the interest rate option we choose to utilize.  Our options for the rate are a Base Rate or LIBOR, plus an applicable margin.  The Base Rate is defined as the highest of the issuing bank’s prime rate, the Federal Funds rate plus 0.50%, or the Adjusted LIBO rate (as defined in the Senior Credit Facility) plus 1.0%.  The applicable margin for the LIBOR rate-based option is a percentage ranging from 2.50% to 3.50% and for the Base Rate option is a percentage ranging from 1.50% to 2.50%.  We pay commitment fees quarterly ranging from 0.40% to 0.75% on the unused portion of the Senior Credit Facility.

As security for the Senior Credit Facility, we granted the lenders liens and security interests in substantially all of the shares of capital stock of the Company and each of our present and future subsidiaries, substantially all of the personal property of the Company and each of our present and future subsidiaries, and the real property, improvements, and fixtures of 49 Ruby Tuesday restaurants.  The net book value of the real property, improvements, and fixtures of the 49 restaurants pledged as collateral totaled $80.8 million as of March 4, 2014.

Under the terms of the Senior Credit Facility, we had no borrowings outstanding at March 4, 2014.  After consideration of letters of credit outstanding, we had $37.6 million available under the Senior Credit Facility as of March 4, 2014.

The Senior Credit Facility contains a number of customary affirmative and negative covenants that, among other things, limit or restrict our ability to incur liens, engage in mergers or other fundamental changes, make acquisitions, investments, loans and advances, pay dividends or other distributions, sell or otherwise dispose of certain assets, engage in certain transactions with affiliates, enter into burdensome agreements or certain hedging agreements, amend organizational documents, change accounting practices, incur additional indebtedness and prepay other indebtedness.  In addition, under the Senior Credit Facility, we are required to comply with financial covenants relating to the maintenance of a maximum leverage ratio and a minimum fixed charge coverage ratio.  The terms of the Senior Credit Facility require us to maintain a maximum leverage ratio of no more than 4.75 to 1.0 and a minimum fixed charge coverage ratio of 1.40 to 1.0 for the quarter ended March 4, 2014.  The terms of the Senior Credit Facility require us to maintain a maximum leverage ratio of no more than 5.00 to 1.0 and a minimum fixed charge coverage ratio of 1.30 to 1.0 for the quarter ending June 3, 2014.  The minimum required ratios fluctuate thereafter as provided in the Senior Credit Facility.

The Senior Credit Facility terminates not later than December 3, 2017.  Upon the occurrence of an event of default, the lenders may terminate the loan commitments, accelerate all loans and exercise any of their rights under the Senior Credit Facility and any ancillary loan documents.

On December 3, 2013, in connection with our entry into the Senior Credit Facility, the Company and certain of its subsidiaries entered into loan modification agreements (the “Loan Modification Agreements”)

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with certain mortgage lenders to, among other things, provide waivers and consents under certain of our mortgage loan obligations to enter into the Senior Credit Facility.  The Loan Modification Agreements also, among other things, amend certain financial reporting requirements under the specified loans and modify and/or provide for certain financial covenants for the specified loans, including the minimum consolidated fixed charge coverage ratio and the minimum adjusted total debt to EBITDAR ratio.  In conjunction with one of the loan modification agreements, on January 2, 2014, we paid approximately $5.0 million to retire a specified portion of certain mortgage loan obligations.

Our $47.2 million in mortgage loan obligations as of March 4, 2014 consists of various loans acquired upon franchise acquisitions.  These loans, which mature between January 2015 and November 2022, have balances which range from $0.1 million to $7.7 million and interest rates of 7.60% to 10.92%.  Many of the properties acquired from franchisees collateralize the loans outstanding.

During the 39 weeks ended March 4, 2014, we spent $0.6 million to repurchase 0.1 million shares of RTI common stock.  As of March 4, 2014, the total number of remaining shares authorized to be repurchased was 11.8 million.  We spent $30.1 million to repurchase 4.1 million shares of RTI common stock during the 39 weeks ended March 5, 2013.

During the remainder of fiscal 2014, we expect to fund operations, capital expansion, and any other investments from cash currently on hand, operating cash flows, or our Senior Credit Facility.

Covenant Compliance

Under the terms of the Senior Credit Facility, we are required to satisfy and maintain specified financial ratios and other financial condition tests and covenants.  The financial ratios include maximum funded debt and minimum fixed charge coverage covenants.  While as of March 4, 2014 we were in compliance with the financial ratios, tests and covenants contained in our Senior Credit Facility, our continued ability to meet those financial ratios, tests and covenants can be affected by events beyond our control, and we cannot assure you that we will meet those ratios, tests and covenants.

Maximum Funded Debt Covenant

Our maximum funded debt covenant is an Adjusted Total Debt to Consolidated EBITDAR ratio.  Adjusted Total Debt, as defined in our covenants, includes items both on-balance sheet (debt and capital lease obligations) and off-balance sheet (such as the present value of leases, letters of credit and guarantees).  In addition to transitionally allowing for the add-back of certain losses from discontinued operations and store closing costs, Consolidated EBITDAR is consolidated net income/(loss) (for the Company and its majority-owned subsidiaries) plus interest charges, income tax, depreciation, amortization, rent and other non-cash charges.  Among other charges, we have reflected share-based compensation, asset impairment and bad debt expense, as non-cash.

Consolidated EBITDAR and Adjusted Total Debt are not presentations made in accordance with U.S. generally accepted accounting principles (“GAAP”), and, as such, should not be considered a measure of financial performance or condition, liquidity or profitability.  They also should not be considered alternatives to GAAP-based net income or balance sheet amounts or operating cash flows or indicators of the amount of free cash flow available for discretionary use by management, as Consolidated EBITDAR does not consider certain cash requirements such as interest payments, tax payments or debt service requirements and Adjusted Total Debt includes certain off-balance sheet items.  Further, because not all companies use identical calculations, amounts reflected by RTI as Consolidated EBITDAR or Adjusted Total Debt may not be comparable to similarly titled measures of other companies.  We believe the information shown below is relevant as it presents the amounts used to calculate covenants which are provided to our lenders.  Non-compliance with our debt covenants could result in the requirement to immediately repay all amounts outstanding under such agreements.

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The following is a reconciliation of our total long-term debt and capital leases, which are GAAP-based, to Adjusted Total Debt as defined in our bank covenants (in thousands):

	March 4, 2014
Current portion of long-term debt, including capital leases	$	4,769
Long-term debt and capital leases, less current maturities		262,104
Total long-term debt and capital leases		266,873
Present value of operating leases*		221,534
Letters of credit*		12,402
Unrestricted cash in excess of $10.0 million		(33,943	)
Unamortized discount of senior unsecured notes		2,670
Unamortized premium of mortgage loan obligations		(799	)
Adjusted Total Debt	$	468,737

* Non-GAAP measure.  See below for discussion regarding reconciliation to GAAP-based amounts.

The following is a reconciliation of net loss, which is a GAAP-based measure of our operating results, to Consolidated EBITDAR as defined in our bank covenants (in thousands):

	Twelve Months
	Ended
	March 4, 2014
Net loss	$	(93,072	)
Rent expense		57,119
Depreciation		56,270
Asset impairments		35,215
Interest expense		25,847
Goodwill impairments		9,022
Share-based compensation expense		7,109
Income taxes		4,963
Non-cash accruals		3,661
Amortization of intangibles		2,658
Restructuring costs		2,585
Pension curtailment expense		2,481
Restaurant closing costs		1,929
Losses on discontinued operations		830
Other		1,459
Consolidated EBITDAR	$	118,076
Adjusted Total Debt to Consolidated EBITDAR – Actual		3.97	x
Maximum allowed per covenant (1)		4.75	x

(1) The Senior Credit Facility requires us to maintain a maximum Adjusted Total Debt to EBITDAR ratio of less than or equal to 5.00x for the quarter ending June 3, 2014.  For fiscal 2015 and thereafter, the maximum Adjusted Total Debt to EBITDAR ratio fluctuates as provided in Article VII of the Senior Credit Facility.

Minimum Fixed Charge Coverage

Our fixed charge coverage ratio compares Consolidated EBITDAR (as discussed above) to interest and cash-based rents.

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The following shows our computation of our fixed charge coverage ratio (in thousands):

	Twelve Months
	Ended
	March 4, 2014
Consolidated EBITDAR		$	118,076
Interest*		$	22,623
Cash rents*			51,596
Total		$	74,219

* Non-GAAP measure.  See below for discussion regarding reconciliation to GAAP-based amounts.

Fixed Charge Covenant – Actual	1.59	x
Minimum allowed per covenant (2)	1.40	x

(2) The Senior Credit Facility requires us to maintain a minimum fixed charge coverage ratio of greater than or equal to 1.30x for the quarter ending June 3, 2014.  For fiscal 2015 and thereafter, the minimum fixed charge coverage ratio fluctuates as provided in Article VII of the Senior Credit Facility.

Non-GAAP Amounts Used in Debt Covenant Calculations

As previously discussed, we use various non-GAAP amounts in our Adjusted Total Debt, Consolidated EBITDAR, and Fixed Charge covenant calculations.  Two of the amounts presented in the Adjusted Total  Debt calculation, the present value of operating leases and letters of credit, are off-balance sheet and there is no corresponding amount presented in our Condensed Consolidated Balance Sheets.

Our Minimum Fixed Charge Coverage ratio requires interest to be included in the denominator.  The amount we reflect for interest in the denominator of this calculation ($22.6 million on a rolling 12 month basis) differs from interest expense determined in accordance with GAAP ($25.8 million) because of three adjustments we make.  As shown below, we exclude brokerage fees, prepayment penalties, and the amortization of loan fees and fair market value adjustments.  While these items are reflected as interest expense in our Condensed Consolidated Statements of Operations, they do not require on-going cash payments for servicing and therefore are not impacted by future Consolidated EBITDAR.  The table below reconciles debt covenant interest for the preceding 12 months to GAAP interest for the same time period (amounts in thousands):

Interest	$	22,623
Brokerage fees		2,161
Prepayment penalties		1,491
Amortization of loan fees and fair market
value adjustments		(428	)
GAAP-based interest expense	$	25,847

Our Minimum Fixed Charge Coverage ratio also allows for recurring cash rents to be included in the denominator.  Cash rents ($51.6 million on a rolling 12 month basis) differ from rents determined in accordance with GAAP ($57.1 million) by the following (amounts in thousands):

Cash rents	$	51,596
Change in rent accruals		3,408
Rent settlement payments		2,115
GAAP-based rent expense	$	57,119

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Significant Contractual Obligations and Commercial Commitments

Long-term financial obligations were as follows as of March 4, 2014 (in thousands):

	Payments Due By Period
			Less than		1-3		3-5		More than 5
	Total		1 year		years		years		years
Notes payable and other    long-term debt, including
current maturities (a)	$	46,631	$	4,892	$	19,589	$	11,489	$	10,661
Senior unsecured notes (a)		222,113		–		–		–		222,113
Interest (b)		124,849		20,508		39,682		36,643		28,016
Operating leases (c)		363,473		46,217		81,960		68,843		166,453
Purchase obligations (d)		69,540		47,581		21,959		–		–
Pension obligations (e)		31,493		2,972		5,171		5,254		18,096
Total (f)	$	858,099	$	122,170	$	168,361	$	122,229	$	445,339

(a)   See Note H to the Condensed Consolidated Financial Statements for more information.

(b)   Amounts represent contractual interest payments on our fixed-rate debt instruments.  Interest payments on our variable-rate notes payable with balances of $2.5 million as of March 4, 2014 have been excluded from the amounts shown above, primarily because the balances outstanding can fluctuate monthly.  Additionally, the amounts shown above include interest payments on the Senior Notes at the current interest rate of 7.625%.

(c)   This amount includes operating leases totaling $2.5 million for which sublease income from franchisees or others is expected.  Certain of these leases obligate us to pay maintenance costs, utilities, real estate taxes, and insurance, which are excluded from the amounts shown above.  See Note G to the Condensed Consolidated Financial Statements for more information.

(d)   The amounts for purchase obligations include cash commitments under contract for food items and supplies, advertising, utility contracts, and other miscellaneous commitments.

(e)   See Note J to the Condensed Consolidated Financial Statements for more information.

(f)   This amount excludes $6.9 million of unrecognized tax benefits due to the uncertainty regarding the timing of future cash outflows associated with such obligations.

Commercial Commitments as of March 4, 2014 (in thousands):

	Payments Due By Period
		Less than	1-3	3-5	More than 5
	Total	1 year	years	years	years
Letters of credit	$ 12,402	$ 12,402	$        –	$          –	$          –
Divestiture guarantees	6,430	803	1,990	1,643	1,994
Total	$ 18,832	$ 13,205	$ 1,990	$   1,643	$   1,994

At March 4, 2014, we had divestiture guarantees, which arose in fiscal 1996, when our shareholders approved the distribution of our family dining restaurant business (Morrison Fresh Cooking, Inc., “MFC”) and our health care food and nutrition services business (Morrison Health Care, Inc., “MHC”). Subsequent to that date Piccadilly Cafeterias, Inc. (“Piccadilly”) acquired MFC and Compass Group (“Compass”) acquired MHC. As agreed upon at the time of the distribution, we have been contingently liable for payments to MFC and MHC employees retiring under MFC’s and MHC’s versions of the Management Retirement Plan and the Executive Supplemental Pension Plan (the two non-qualified defined benefit plans) for the accrued benefits earned by those participants as of March 1996.

We estimated our divestiture guarantees at March 4, 2014 to be $5.9 million for employee benefit plans (all of which resides with MHC following Piccadilly’s bankruptcy in fiscal 2004).  We believe the likelihood of being required to make payments for MHC’s portion to be remote due to the size and financial strength of MHC and Compass.

Accounting Pronouncements Not Yet Adopted

In July 2013, the Financial Accounting Standards Board issued Accounting Standards Update (“ASU”) No. 2013-11, “Income Taxes (Topic 740): Presentation of an Unrecognized Tax Benefit When a Net Operating

47

Loss Carryforward, a Similar Tax Loss, or a Tax Credit Carryforward Exists” (“ASU 2013-11”).  The guidance requires an entity to present its unrecognized tax benefits net of its deferred tax assets when settlement in this manner is available under the tax law, which would be based on facts and circumstances as of the balance sheet reporting date and would not consider future events.  Gross presentation in the notes to the financial statements will still be required.  ASU 2013-11 will apply on a prospective basis to all unrecognized tax benefits that exist at the effective date, with the option to apply it retrospectively.  The guidance is effective for fiscal years, and interim periods within those years, beginning after December 15, 2013 (our fiscal 2015 first quarter).  While the adoption of ASU 2013-11 will not have an impact on our results of operations or cash flows, we are currently evaluating the impact of presenting unrecognized tax benefits net of our deferred tax assets where applicable on our Condensed Consolidated Balance Sheets.

Known Events, Uncertainties and Trends:

Restaurant Closures

As discussed in Note I to the Condensed Consolidated Financial Statements, during the quarter ended March 4, 2014, we closed 24 Ruby Tuesday concept restaurants in connection with a plan approved by the Board of Directors of Ruby Tuesday, Inc. on January 7, 2014.  Of these closures, 11 of these restaurants closed upon expiration of their lease.  Included within Closures and impairments, net for the 39 weeks ended March 4, 2014 are impairment charges recognized during the second quarter of the current year of $4.4 million in connection with the early restaurant closures.  We plan to close approximately six to nine additional Ruby Tuesday concept restaurants during the fourth quarter of fiscal 2014 in connection with this plan as currently modified.  Accordingly, in conjunction with the closings, our fourth quarter Closures and Impairments Expense will include costs associated with lease terminations, future lease obligations, severance, and inventory obsolescence charges.  For the remainder of fiscal 2014, we anticipate incurring charges of approximately $2.5 to $3.5 million associated with lease termination and other closing costs.  The actual amount of any cash payments made by the Company for lease contract termination costs will be dependent upon ongoing negotiations with the landlords of the leased restaurant properties.

Financial Strategy and Stock Repurchase Plan

Our financial strategy is to utilize a prudent amount of debt, including operating leases, letters of credit, and any guarantees, to minimize the weighted average cost of capital while allowing financial flexibility.  This strategy has periodically allowed us to repurchase our common stock.  During the first three quarters of fiscal 2014, we repurchased 0.1 million shares of our common stock at an aggregate cost of $0.6 million.  As of March 4, 2014, the total number of remaining shares authorized to be repurchased was 11.8 million.  To the extent not funded with cash on hand or cash from operating activities, additional repurchases, if any, may be funded by available cash on hand or borrowings on the Senior Credit Facility.  The repurchase of shares in any particular future period and the actual amount thereof remain at the discretion of the Board of Directors, and no assurance can be given that shares will be repurchased in the future.

Repurchases of Senior Notes

We are allowed under the terms of the Senior Credit Facility to prepay up to $20.0 million of indebtedness in any fiscal year to various holders of the Senior Notes.  As discussed in Note H to the Condensed Consolidated Financial Statements, we repurchased $12.9 million of the Senior Notes during the 39 weeks ended March 4, 2014 for $13.0 million plus $0.2 million of accrued interest.  We realized a $0.5 million loss on these transactions.  As of the date of this filing, we may repurchase an additional $7.1 million of the Senior Notes during the remainder of fiscal 2014.  Any future repurchases of the Senior Notes, if any, will be funded with available cash on hand.

Dividends

During fiscal 1997, our Board of Directors approved a dividend policy as an additional means of returning capital to our shareholders.  Thepayment of a dividend in any particular period and the actual amount thereof remain at the discretion of the Board of Directors, and no assurance can be given that dividends will be paid in the future.

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ITEM 3.  QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

Disclosures about Market Risk

We are exposed to market risk from fluctuations in interest rates and changes in commodity prices.  The interest rate charged on our Senior Credit Facility can vary based on the interest rate option we choose to utilize.  Our options for the rate are LIBOR or a Base Rate plus an applicable margin.  The Base Rate is defined as the highest of the issuing bank’s prime rate, the Federal Funds rate plus 0.50%, or the Adjusted LIBO rate (as defined in the Senior Credit Facility) plus 1.0%.  The applicable margin for the LIBOR rate-based option is a percentage ranging from 2.50% to 3.50% and for the Base Rate option is a percentage ranging from 1.50% to 2.50%.  As of March 4, 2014, the total amount of outstanding debt subject to interest rate fluctuations was $2.5 million.  A hypothetical 100 basis point change in short-term interest rates would result in an increase or decrease in interest expense of an insignificant amount per year, assuming a consistent capital structure.

Many of the ingredients used in the products we sell in our restaurants are commodities that are subject to unpredictable price volatility.  This volatility may be due to factors outside our control such as weather and seasonality.  We attempt to minimize the effect of price volatility by negotiating fixed price contracts for the supply of key ingredients.  Historically, and subject to competitive market conditions, we have been able to mitigate the negative impact of price volatility through adjustments to average check or menu mix.

ITEM 4.  CONTROLS AND PROCEDURES

Evaluation of Disclosure Controls and Procedures

Our management, with the participation and under the supervision of the Chief Executive Officer and Chief Financial Officer, evaluated the effectiveness of the design and operation of our disclosure controls and procedures as of the end of the period covered by this report.  The term “disclosure controls and procedures,” as defined in Rules 13a-15(e) under the Securities Exchange Act of 1934, as amended (the “Exchange Act”), means controls and other procedures of a company that are designed to ensure that information required to be disclosed by a company in the reports that it files or submits under the Exchange Act is recorded, processed, summarized and reported, within the time periods specified in the SEC’s rules and forms.  Disclosure controls and procedures include, without limitation, controls and procedures designed to ensure that information required to be disclosed by a company in the reports that it files or submits under the Exchange Act is accumulated and communicated to the company’s management, including its principal executive and principal financial officers, as appropriate to allow timely decisions regarding required disclosure.  Management recognizes that any controls and procedures, no matter how well designed and operated, can provide only reasonable assurance of achieving their objectives and management necessarily applies its judgment in evaluating the cost-benefit relationship of possible controls and procedures.  Based on the evaluation, the Chief Executive Officer and the Chief Financial Officer have concluded that our disclosure controls and procedures were effective as of March 4, 2014.

Changes in Internal Controls

During the fiscal quarter ended March 4, 2014, there were no changes in our internal control over financial reporting (as defined in Rule 13a-15(f) under the Exchange Act) that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.

PART II — OTHER INFORMATION

ITEM 1.  LEGAL PROCEEDINGS

We are presently, and from time to time, subject to pending claims and lawsuits arising in the ordinary course of business, including claims relating to injury or wrongful death under “dram shop” laws, workers’ compensation and employment matters, claims relating to lease and contractual obligations, and claims from customers alleging illness or injury.  We provide reserves for such claims when payment is probable and estimable in accordance with U.S. generally accepted accounting principles.  At this time, in the opinion of management, the ultimate resolution of pending legal proceedings will not have a material adverse effect on our consolidated operations, financial position, or cash flows.  See Note N to the

49

Condensed Consolidated Financial Statements for further information about our legal proceedings as of March 4, 2014.

ITEM 1A.  RISK FACTORS

Information regarding risk factors appears in our Annual Report on Form 10-K for the year ended June 4, 2013 in Part I, Item 1A. Risk Factors.  There have been no material changes from the risk factors previously disclosed in our Annual Report on Form 10-K.

ITEM 2.  UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS

The following table includes information regarding purchases of our common stock made by us during our third fiscal quarter ending March 4, 2014:

	(a)	(b)	(c)	(d)
	Total number	Average	Total number of shares	Maximum number of shares
	of shares	price paid	purchased as part of publicly	that may yet be purchased
Period	purchased (1)	per share	announced plans or programs (1)	under the plans or programs (2)
Month #1
(December 4 to January 7)	4,546	$6.60	4,546	11,774,793
Month #2
(January 8 to February 4)	711	$6.60	711	11,774,082
Month #3
(February 5 to March 4)	711	$6.60	711	11,773,371
Total	5,968	$6.60	5,968

(1) No shares were repurchased other than through our publicly-announced repurchase programs and authorizations during the first three quarters of our fiscal year ending June 3, 2014.

(2) As of March 4, 2014, 11.8 million shares remained available for purchase under existing programs, which consists of 1.8 million shares remaining under a July 11, 2007 authorization by the Board of Directors to repurchase 6.5 million shares and a January 8, 2013 authorization by the Board of Directors, not yet begun, to repurchase 10.0 million shares.  The timing, price, quantity, and manner of the purchases to be made are at the discretion of management upon instruction from the Board of Directors, depending upon market conditions.  The repurchase of shares in any particular future period and the actual amount thereof remain at the discretion of the Board of Directors, and no assurance can be given that shares will be repurchased in the future.

ITEM 3.  DEFAULTS UPON SENIOR SECURITIES

None.

ITEM 4.  MINE SAFETY DISCLOSURES

Not applicable.

ITEM 5.  OTHER INFORMATION

Amendment to the Ruby Tuesday, Inc, Stock Incentive Plan (“SIP”)

On April 9, 2014, the Ruby Tuesday, Inc. Board of Directors adopted a resolution amending the SIP to permit the committee administering the plan to delegate its authority to grant stock incentives to individuals that are not deemed to be a “reporting person” for purposes of Section 16 of the Securities Exchange Act of 1934.  Under the amendment, such authority can only be delegated to a member of the Board of Directors, an officer of the Company, and/or an officer of the administrative authority.  Moreover, such delegation must be subject to individual and aggregate value limits, and the individual to whom the authority is delegated must timely report all exercises of that authority to the committee. This delegation is intended to

50

provide helpful, but limited, flexibility to make certain onboarding awards.  The amendment also provides for the delegation of certain  administrative authority regarding interpretation and treatment of stock incentive awards for non-Section 16 reporting persons.

Amendment and Restatement of the Ruby Tuesday, Inc. Stock Incentive and Deferred Compensation Plan for Directors (the “Directors’ Plan”)

On April 9, 2014, the Ruby Tuesday, Inc. Board of Directors adopted a resolution amending and restating the Directors’ Plan to terminate those portions of the plan providing for the award of share-based compensation to non-employee directors but preserving the deferred compensation component of the plan.  The amendment and restatement also changes the name of the Directors’ Plan to the Ruby Tuesday, Inc. Deferred Compensation Plan for Directors.  All remaining shares of common stock available for issuance under the Directors’ Plan, which were insignificant as of the date of the resolution, were released and will not be reserved for any future purpose.  As stated in Note L to the Condensed Consolidated Financial Statements, all future share-based compensation granted to non-employee directors will be awarded from shares of common stock available for issuance under the SIP.

ITEM 6. EXHIBITS

The following exhibits are filed as part of this report:

 Exhibit No.

10	.1	Second Amendment to Revolving Credit Agreement and Waiver.
10	.2	First Amendment to the Ruby Tuesday, Inc. Stock Incentive Plan.
10	.3	Ruby Tuesday, Inc. Deferred Compensation Plan for Directors (Amended and Restated as of
		April 8, 2014).
12	.1	Statement regarding computation of Consolidated Ratio of Earnings to Fixed Charges.
31	.1	Certification of James J. Buettgen, President and Chief Executive Officer.
31	.2	Certification of Michael O. Moore, Executive Vice President, Chief Financial Officer.
32	.1	Certification pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the
		Sarbanes-Oxley Act of 2002.
32	.2	Certification pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the
		Sarbanes-Oxley Act of 2002.
10	1.INS	XBRL Instance Document.
10	1.SCH	XBRL Schema Document.
10	1.CAL	XBRL Calculation Linkbase Document.
10	1.DEF	XBRL Definition Linkbase Document.
10	1.LAB	XBRL Labels Linkbase Document.
10	1.PRE	XBRL Presentation Linkbase Document.

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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)

Date: April 11, 2014  BY: /s/ MICHAEL O. MOORE —————————————— Michael O. Moore Executive Vice President – Chief Financial Officer and Assistant Secretary (Principal Financial Officer)

Date: April 11, 2014  BY: /s/ FRANKLIN E. SOUTHALL, JR. ————————————————— Franklin E. Southall, Jr. Vice President – Corporate Controller and Principal Accounting Officer (Principal Accounting Officer)

52

EX-10.1

SECOND AMENDMENT TO REVOLVING CREDIT AGREEMENT AND WAIVER

THIS SECOND AMENDMENT TO REVOLVING CREDIT AGREEMENT AND WAIVER, dated as of February 7, 2014 (the “Agreement”), is entered into among Ruby Tuesday, Inc., a Georgia corporation (the “Borrower”), the Guarantors, the Lenders party hereto and Bank of America, N.A., as administrative agent for the Lenders (in such capacity, the “Administrative Agent”).  All capitalized terms used herein and not otherwise defined herein shall have the meanings given to such terms in the Credit Agreement (as defined below).

RECITALS

WHEREAS, the Borrower, the Guarantors, the Lenders and the Administrative Agent entered into that certain Revolving Credit Agreement dated as of December 3, 2013 (as amended by that certain First Amendment to Revolving Credit Agreement and Waiver dated as of January 10, 2014 and as further amended or modified from time to time, the “Credit Agreement”);

WHEREAS, in November of 2013, three employees of the Borrower were terminated, which termination led to the Borrower’s repurchase of Equity Interests of the Borrower held by such employees in an amount equal to approximately $35,000 (the “Share Repurchase”);

WHEREAS, such Share Repurchase may have violated the terms of Section 8.4 of the Credit Agreement (the “Existing Event of Default”);

WHEREAS, the Borrower has requested that the Lenders waive the Existing Event of Default and amend the Credit Agreement as set forth below, in each case subject to the terms and conditions specified in this Agreement;

NOW, THEREFORE, in consideration of the premises and the mutual covenants contained herein, and for other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties hereto agree as follows:

1.Incorporation of Recitals.  The recitals to this Agreement are incorporated fully and made a part of this Agreement.

2.Reaffirmation.  Each of the Loan Parties acknowledges and reaffirms (a) that it is bound by all of the terms of the Credit Agreement and the other Loan Documents to which it is a party and (b) that it is responsible for the observance and full performance of all Obligations, including without limitation, the repayment of the Loans and reimbursement of any drawings on a Letter of Credit.  Without limiting the generality of the preceding sentence, each of the Guarantors restates and reaffirms that it guarantees the prompt payment when due of all Obligations, in accordance with, and pursuant to the terms of the Credit Agreement.  Furthermore, the Loan Parties acknowledge and confirm (i) that the Administrative Agent and the Lenders have performed fully all of their respective obligations under the Credit Agreement and the other Loan Documents and (ii) by entering into this Agreement, the Lenders do not waive (except as specifically provided in Section 3 hereof) or release any term or condition of the Credit Agreement or any of the other Loan Documents or any of their rights or remedies under such Loan Documents or applicable law or any of the obligations of the Loan Parties thereunder.

3.           Waiver.  Subject to the other terms and conditions of this Agreement, to the extent it constituted an Event of Default, the Administrative Agent and the Lenders agree to waive the Existing Event of Default.  The waiver set forth herein shall be effective only in this specific instance and shall not obligate the Lenders or the Administrative Agent to waive any other Default or Event of Default, now

1

existing or hereafter arising.  This waiver is limited solely to the matters described in the first sentence of this Section 3 as of the date hereof, and nothing contained in this Agreement shall (a) modify the Loan Parties’ obligations to comply fully with all duties, terms, conditions or covenants contained in the Credit Agreement and the other Loan Documents or (b) be deemed to constitute a waiver of any other rights or remedies the Administrative Agent or any Lender may have under the Credit Agreement or any other Loan Documents or under applicable law.  This is a one-time waiver, and the Administrative Agent and the Lenders shall have no obligation to amend, modify or waive any provision of the Credit Agreement or any other Loan Document in the future.  The provisions and agreements set forth in this Agreement shall not establish a custom or course of dealing or conduct between the Administrative Agent, the Issuing Bank, any Lender, the Borrower or any other Loan Party.

4.           Amendment.  Section 8.4 of the Credit Agreement is hereby amended by adding the following as a new clause (c) and renumbering the existing clause (c) as clause (d):

(c)           the Borrower may repurchase its Equity Interests or options, warrants or other rights to acquire its Equity Interests owned by former directors, officers and employees following the termination of service or employment of such directors, officers or employees or in connection with the death or disability of any such director, officer or employee; provided, however, that (i) the aggregate amount of any such repurchases shall not exceed $125,000 in any fiscal year and (ii) no Default or Event of Default has occurred or is continuing after giving effect to such repurchase; and

5.           Conditions Precedent.  This Agreement shall be effective upon satisfaction of the following conditions precedent:

(a)receipt by the Administrative Agent of counterparts of this Agreement, duly executed by the Borrower, the Guarantors, the Administrative Agent and the Required Lenders; and

(b)           receipt by Moore & Van Allen PLLC, counsel to the Administrative Agent, of its fees and expenses incurred in connection with this Agreement.

6.           Miscellaneous.

(a) The Credit Agreement, and the obligations of the Loan Parties thereunder and under the other Loan Documents, are hereby ratified and confirmed and shall remain in full force and effect according to their terms.

(b) Each Loan Party hereby represents and warrants as follows:

(i)           Each Loan Party has taken all necessary action to authorize the execution, delivery and performance of this Agreement.

(ii)           This Agreement has been duly executed and delivered by each Loan Party and constitutes the legal, valid and binding obligations of each Loan Party, enforceable in accordance with its terms, except as such enforceability may be subject to (A) bankruptcy, insolvency, reorganization, fraudulent conveyance or transfer, moratorium or similar laws affecting creditors’ rights generally and (B) general principles of equity (regardless of whether such enforceability is considered in a proceeding at law or in equity).

2

(iii)           No consent, approval, authorization or order of, or filing, registration or qualification with, any court or governmental authority or third party is required in connection with the execution, delivery or performance by any Loan Party of this Agreement.

(c) Each Loan Party represents and warrants to the Lenders that (i) the representations and warranties set forth in Article V of the Credit Agreement and in each other Loan Document are true and correct in all material respects (before and after giving effect to this Agreement) as of the date hereof with the same effect as if made on and as of the date hereof, except to the extent such representations and warranties expressly relate to an earlier date and (ii) no unwaived event has occurred and is continuing which constitutes a Default or an Event of Default.

(d) This Agreement may be executed in any number of counterparts, each of which when so executed and delivered shall be an original, but all of which shall constitute one and the same instrument.  Delivery of an executed counterpart of this Agreement by telecopy shall be effective as an original and shall constitute a representation that an executed original shall be delivered.

(e)           THIS AGREEMENT SHALL BE CONSTRUED IN ACCORDANCE WITH AND BE GOVERNED BY THE LAW (WITHOUT GIVING EFFECT TO THE CONFLICT OF LAW PRINCIPLES THEREOF) OF THE STATE OF GEORGIA.

[remainder of page intentionally left blank]

3 

Each of the parties hereto has caused a counterpart of this Agreement to be duly executed and delivered as of the date first above written.

BORROWER:                                                                           RUBY TUESDAY, INC.

By: s/ Scarlett May                                                

Name: Scarlett May

Title: Senior Vice President, Chief Legal Officer

and Secretary

GUARANTORS:                                                                RTBD, INC.

By: s/ Scarlett May                                                      

Name: Scarlett May

Title: Vice President and Secretary

RT FINANCE, INC.

By: s/ Scarlett May                                                      

Name: Scarlett May

Title: Vice President and Secretary

RUBY TUESDAY GC CARDS, INC.

By: s/ Scarlett May                                                      

Name: Scarlett May

Title: Vice President and Secretary

RT TAMPA FRANCHISE, L.P.

By: s/ Scarlett May                                                      

Name: Scarlett May

Title: Vice President and Secretary

RT ORLANDO FRANCHISE, L.P.

By: s/ Scarlett May                                                      

Name: Scarlett May

Title: Vice President and Secretary

RT SOUTH FLORIDA FRANCHISE, L.P.

By: s/ Scarlett May                                                      

Name: Scarlett May

Title: Vice President and Secretary

RT NEW YORK FRANCHISE, LLC

By: s/ Scarlett May                                                      

Name: Scarlett May

Title: Vice President and Secretary

SECOND AMENDMENT TO REVOLVING CREDIT AGREEMENT AND WAIVER

RUBY TUESDAY, INC.

RT SOUTHWEST FRANCHISE, LLC

By: s/ Scarlett May                                                      

Name: Scarlett May

Title: Vice President and Secretary

RT MICHIANA FRANCHISE, LLC

By: s/ Scarlett May                                                      

Name: Scarlett May

Title: Vice President and Secretary

RT FRANCHISE ACQUISITION, LLC

By: s/ Scarlett May                                                      

Name: Scarlett May

Title: Vice President and Secretary

RT KENTUCKY RESTAURANT HOLDINGS, LLC

By: s/ Scarlett May                                                      

Name: Scarlett May

Title: Vice President and Secretary

RT FLORIDA EQUITY, LLC

By: s/ Scarlett May                                                      

Name: Scarlett May

Title: Vice President and Secretary

RTGC, LLC

By: s/ Scarlett May                                                      

Name: Scarlett May

Title: Vice President and Secretary

RT DETROIT FRANCHISE, LLC

By: s/ Scarlett May                                                      

Name: Scarlett May

Title: Vice President and Secretary

RT MICHIGAN FRANCHISE, LLC

By: s/ Scarlett May                                                      

Name: Scarlett May

Title: Vice President and Secretary

SECOND AMENDMENT TO REVOLVING CREDIT AGREEMENT AND WAIVER

RUBY TUESDAY, INC.

RT WEST PALM BEACH FRANCHISE, L.P.

By: s/ Scarlett May                                                      

Name: Scarlett May

Title: Vice President and Secretary

RT NEW ENGLAND FRANCHISE, LLC

By: s/ Scarlett May                                                      

Name: Scarlett May

Title: Vice President and Secretary

RT LONG ISLAND FRANCHISE, LLC

By: s/ Scarlett May                                                      

Name: Scarlett May

Title: Vice President and Secretary

RUBY TUESDAY, LLC

By: s/ Scarlett May                                                  

Name: Scarlett May

Title: Vice President and Secretary

RT LAS VEGAS FRANCHISE, LLC

By: s/ Scarlett May                                                      

Name: Scarlett May

Title: Vice President and Secretary

RT MINNEAPOLIS FRANCHISE, LLC

By: s/ Scarlett May                                                      

Name: Scarlett May

Title: Vice President and Secretary

RT INDIANAPOLIS FRANCHISE, LLC

By: s/ Scarlett May                                                      

Name: Scarlett May

Title: Vice President and Secretary

RT DENVER FRANCHISE, L.P.

By: s/ Scarlett May                                                      

Name: Scarlett May

Title: Vice President and Secretary

SECOND AMENDMENT TO REVOLVING CREDIT AGREEMENT AND WAIVER

RUBY TUESDAY, INC.

RT OMAHA FRANCHISE, LLC

By: s/ Scarlett May                                                      

Name: Scarlett May

Title: Vice President and Secretary

RT KCMO FRANCHISE, LLC

By: s/ Scarlett May                                                      

Name: Scarlett May

Title: Vice President and Secretary

RT PORTLAND FRANCHISE, LLC

By: s/ Scarlett May                                                      

Name: Scarlett May

Title: Vice President and Secretary

RT ST. LOUIS FRANCHISE, LLC

By: s/ Scarlett May                                                      

Name: Scarlett May

Title: Vice President and Secretary

RT WESTERN MISSOURI FRANCHISE, LLC

By: s/ Scarlett May                                                      

Name: Scarlett May

Title: Vice President and Secretary

QUALITY OUTDOOR SERVICES, INC.

By: s/ Scarlett May                                                      

Name: Scarlett May

Title: Vice President and Secretary

RT AIRPORT, INC.

By: s/ Scarlett May                                                      

Name: Scarlett May

Title: Vice President and Secretary

RT LOUISVILLE FRANCHISE, LLC

By: s/ Scarlett May                                                      

Name: Scarlett May

Title: Vice President and Secretary

SECOND AMENDMENT TO REVOLVING CREDIT AGREEMENT AND WAIVER

RUBY TUESDAY, INC.

RT MCGHEE-TYSON, LLC

By: s/ Scarlett May                                                      

Name: Scarlett May

Title: Vice President and Secretary

RT ONE PERCENT HOLDINGS, INC.

By: s/ Scarlett May                                                      

Name: Scarlett May

Title: Vice President and Secretary

RT ONE PERCENT HOLDINGS, LLC

By: s/ Scarlett May                                                      

Name: Scarlett May

Title: Vice President and Secretary

RT MINNEAPOLIS HOLDINGS, LLC

By: s/ Scarlett May                                                      

Name: Scarlett May

Title: Vice President and Secretary

RT OMAHA HOLDINGS, LLC

By: s/ Scarlett May                                                      

Name: Scarlett May

Title: Vice President and Secretary

RT DENVER, INC.

By: s/ Scarlett May                                                      

Name: Scarlett May

Title: Vice President and Secretary

RT LOUISVILLE, INC.

By: s/ Scarlett May                                                      

Name: Scarlett May

Title: Vice President and Secretary

RT ORLANDO, INC.

By: s/ Scarlett May                                                      

Name: Scarlett May

Title: Vice President and Secretary

SECOND AMENDMENT TO REVOLVING CREDIT AGREEMENT AND WAIVER

RUBY TUESDAY, INC.

RT SOUTH FLORIDA, INC.

By: s/ Scarlett May                                                      

Name: Scarlett May

Title: Vice President and Secretary

RT TAMPA, INC.

By: s/ Scarlett May                                                      

Name: Scarlett May

Title: Vice President and Secretary

RT WEST PALM BEACH, INC.

By: s/ Scarlett May                                                      

Name: Scarlett May

Title: Vice President and Secretary

RT NEW HAMPSHIRE RESTAURANT HOLDINGS, LLC

By: s/ Scarlett May                                                      

Name: Scarlett May

Title: Vice President and Secretary

RT RESTAURANT SERVICES, LLC

By: s/ Scarlett May                                                      

Name: Scarlett May

Title: Vice President and Secretary

RT NORTHERN CALIFORNIA FRANCHISE, LLC

By: s/ Scarlett May                                                      

Name: Scarlett May

Title: Vice President and Secretary

RTTA, LP

By: s/ Scarlett May                                                      

Name: Scarlett May

Title: Vice President

WOK HAY 2, LLC

By: s/ Scarlett May                                                      

Name: Scarlett May

Title: Vice President and Secretary

SECOND AMENDMENT TO REVOLVING CREDIT AGREEMENT AND WAIVER

RUBY TUESDAY, INC.

RT DISTRIBUTING, LLC

By: s/ Scarlett May                                                      

Name: Scarlett May

Title: Vice President and Secretary

RT O’TOOLE, LLC

By: s/ Scarlett May                                                      

Name: Scarlett May

Title: Vice President and Secretary

RT SMITH, LLC

By: s/ Scarlett May                                                      

Name: Scarlett May

Title: Vice President and Secretary

RT MILLINGTON, LLC

By: s/ Scarlett May                                                      

Name: Scarlett May

Title: Vice President and Secretary

4721 RT OF PENNSYLVANIA, INC.

By: s/ Scarlett May                                                      

Name: Scarlett May

Title: Vice President and Secretary

RTTT, LLC

By: s/ Scarlett May                                                      

Name: Scarlett May

Title: Manager

RTT TEXAS, INC.

By: s/ Scarlett May                                                      

Name: Scarlett May

Title: Vice President and Treasurer

RT JONESBORO CLUB

By: s/ Scarlett May                                                      

Name: Scarlett May

Title: Vice President and Treasurer

SECOND AMENDMENT TO REVOLVING CREDIT AGREEMENT AND WAIVER

RUBY TUESDAY, INC.

RT ARKANSAS CLUB, INC.

By: s/ Scarlett May                                                      

Name: Scarlett May

Title: Secretary and Treasurer

RUBY TUESDAY OF RUSSELLVILLE, INC.

By: s/ Scarlett May                                                      

Name: Scarlett May

Title: Secretary and Treasurer

RUBY TUESDAY OF CONWAY, INC.

By: s/ Scarlett May                                                      

Name: Scarlett May

Title: Secretary and Treasurer

RT KCMO KANSAS, INC.

By: s/ Scarlett May                                                      

Name: Scarlett May

Title: Vice President and Secretary

RUBY TUESDAY OF BRYANT, INC.

By: s/ Scarlett May                                                      

Name: Scarlett May

Title: Secretary and Treasurer

SECOND AMENDMENT TO REVOLVING CREDIT AGREEMENT AND WAIVER

RUBY TUESDAY, INC.

ADMINISTRATIVE AGENT:                                                                BANK OF AMERICA, N.A.,

as Administrative Agent

By       s/ Erik M. Truette                                                           

Name:  Erik M. Truette

Title:    Assistant Vice President

SECOND AMENDMENT TO REVOLVING CREDIT AGREEMENT AND WAIVER

RUBY TUESDAY, INC.

LENDERS:                                                                BANK OF AMERICA, N.A.,

as a Lender and an Issuing Bank

By       s/ John Schmidt                                                

Name:  John Schmidt

Title:   Senior Vice President

 SECOND AMENDMENT TO REVOLVING CREDIT AGREEMENT AND WAIVER

RUBY TUESDAY, INC.

WELLS FARGO BANK, NATIONAL ASSOCIATION,

as a Lender

By       s/ Maureen S. Malphus                                                           

Name:  Maureen S. Malphus

Title:    Vice President

 SECOND AMENDMENT TO REVOLVING CREDIT AGREEMENT AND WAIVER

RUBY TUESDAY, INC.

REGIONS BANK,

as a Lender

By       s/ Jay Sim                                                           

Name:  Jay Sim

Title:    Vice President

 SECOND AMENDMENT TO REVOLVING CREDIT AGREEMENT AND WAIVER

RUBY TUESDAY, INC.

EX-10.2

FIRST AMENDMENT TO THE

RUBY TUESDAY, INC.

STOCK INCENTIVE PLAN

THIS FIRST AMENDMENT to the Ruby Tuesday Inc., Stock Incentive Plan is made on this 9th day of April, 2014 by Ruby Tuesday, Inc., a corporation duly organized and existing under the laws of the State of Georgia (the “Company”).

WHEREAS, the Company maintains the Ruby Tuesday, Inc. Stock Incentive Plan (the “Plan”), as amended and restated by indenture dated as of October 9, 2013, and as approved by the Company’s shareholders on the same date.

WHEREAS, the Company wishes to amend the Plan to allow the committee administering the Plan the authority to provide for a delegation of its award granting authority.

WHEREAS, this First Amendment shall supersede the provisions of the Plan to the extent those provisions are inconsistent with the provisions of this amendment.

NOW, THEREFORE, the Company does hereby amend the Plan, effective as of the date indicated above, by deleting Section 2.3 in its entirety and by substituting therefor the following:

“2.3           Administration of the Plan.  The Plan shall be administered by the Committee.  The Board of Directors may from time to time remove members from or add members to the Committee.  Vacancies on the Committee shall be filled by the Board of Directors.

The Committee shall have full authority in its discretion to determine from among the eligible individuals of the Company or its affiliates to whom Stock Incentives shall be granted and the terms and provisions of Stock Incentives, subject to the Plan.  Subject to the provisions of the Plan, the Committee shall have full and conclusive authority to interpret the Plan; to prescribe, amend and rescind rules and regulations relating to the Plan; to determine the terms and provisions of the respective Stock Incentive Agreements or Stock Incentive Programs and to make all other determinations necessary or advisable for the proper administration of the Plan.  The Committee’s determinations under the Plan need not be uniform and may be made by it selectively among persons who receive, or are eligible to receive, awards under the Plan (whether or not such persons are similarly situated).  The Committee’s decisions shall be final and binding on all Participants.  As to any matter involving a Participant who is not a “reporting person” for purposes of Section 16 of the Securities Exchange Act of 1934, the Committee may delegate to any member of the Board of Directors or officer of the Company the administrative authority:  (a) to grant Stock Incentives to eligible individuals of the Company and its affiliates, subject (i) to individual and aggregate

quantitative limitations on the number of, or, in the case of cash-based Stock Incentives, the value of, Stock Incentives that may be granted pursuant to such delegated authority and (ii) to the requirement that all such exercises of the delegated authority be reported on a timely basis to the Committee; (b) to interpret the provisions of the Participant’s Stock Incentive Agreement and (c) to determine the treatment of Stock Incentives upon a Termination of Service, as contemplated by Plan Section 3.8.”

The provisions of this First Amendment shall become effective as of the date first set forth above.

IN WITNESS WHEREOF, the Company has caused this First Amendment to be executed as of the day and year first above written.

RUBY TUESDAY, INC.

    /s/ James J. Buettgen

By:           James J. Buettgen                                                                           

Title:        Chairman, President, and Chief Executive Officer

Attest:

 /s/ Scarlett May

By:          /s/  Scarlett May                                                                

Title:       Senior Vice President,                                                      

Chief Legal Officer & Secretary                                                                

[CORPORATE SEAL]

EX-10.3

RUBY TUESDAY, INC.

DEFERRED COMPENSATION PLAN FOR DIRECTORS

(AS AMENDED AND RESTATED AS OF APRIL 9, 2014)

TABLE OF CONTENTS

	Page
SECTION 1 DEFINITIONS	1
1.1 Definitions	1
SECTION 2 DEFERRED COMPENSATION PLAN	3
2.1 The Purpose of the Plan	3
2.2 Administration of the Plan	3
2.3 Eligibility	3
SECTION 3 DEFERRAL OF COMPENSATION	3
3.1 Deferral to Deferred Compensation Accounts	3
3.2 Revocation of Elections	4
3.3 Prior Elections	4
SECTION 4 DEFERRED COMPENSATION ACCOUNTS	4
4.1 Establishment of Accounts	4
4.2 Crediting of Deferrals	4
4.3 Crediting Income	4
SECTION 5 DISTRIBUTION OF DEFERRED COMPENSATION ACCOUNTS	4
5.1 Form of Payment	4
5.2 Timing of Payment	4
5.3 Default Form and Timing of Payment	5
5.4 Distribution upon Death	5
4.6 Statement of Account	6
4.7 Participant's Rights Unsecured	6
SECTION 6 GENERAL PROVISIONS	6
6.1 Right to Remove Director	6
6.2 Non-alienation of Benefits	6
6.3 Termination and Amendment of the Plan	6
6.4 Choice of Law	7
6.5 Effective Date of Plan	7

- i -

RUBY TUESDAY, INC.

DEFERRED COMPENSATION PLAN FOR DIRECTORS

(AS AMENDED AND RESTATED AS OF APRIL 9, 2014)

The Ruby Tuesday, Inc. Deferred Compensation Plan for Directors contained herein constitutes an amendment and restatement of the Ruby Tuesday, Inc. Stock Incentive and Deferred Compensation Plan for Directors, as amended and restated as of October 8, 2008, as further restated by the First, Second and Third Amendments thereto.  The Plan is a direct successor to the First Prior Plan and an indirect successor to the Second Prior Plan.

SECTION 1  DEFINITIONS

1.1Definitions.  Whenever used herein, the masculine pronoun shall be deemed to include the feminine, and the singular to include the plural, unless the context clearly indicates otherwise, and the following capitalized words and phrases are used herein with the meaning thereafter ascribed:

(a)“Annual Retainer Compensation” means the retainer fee payable to a Participant by the Company for the then current fiscal year of the Company, but shall not include any meeting or committee fees or expense reimbursements paid to a Participant, as determined on the first day of the fiscal year or, if later, as of the first day an individual becomes a Participant.

(b)“Board of Directors” means the board of directors of the Company.

(c)“Code” means the Internal Revenue Code of 1986, as amended, and the rules and regulations promulgated thereunder.

(d)“Committee” means the committee appointed by the Board of Directors to administer the Plan or, in the absence of appointment of such committee, the Board of Directors.

(e)“Company” means Ruby Tuesday, Inc., a Georgia corporation, or its successor.

(f)“Compensation” means Nonretainer Compensation and Annual Retainer Compensation.

(g)“Deferred Compensation Account” means an account established and maintained on behalf of a Participant which shall be credited with certain amounts deferred by Participants under the Plan and with a rate of return as described in Plan Section 4.3.

(h)“Effective Date” means April 9, 2014, the date the Plan, as amended and restated herein, is approved by the Board of Directors.

1

(i)“First Prior Plan” means the Morrison Restaurants Inc. Stock Incentive and Deferred Compensation Plan for Directors.

(j)“Nonretainer Compensation” means the meeting and committee fees paid to a Participant by the Company, but does not include any Retainer Compensation or expense reimbursement paid to a Participant.

(k)“Participant” means an individual who, pursuant to Plan Section 2.3, is eligible to participate in the Plan.

(l)“Plan” means the Ruby Tuesday, Inc. Deferred Compensation Plan for Directors.

(m)“Plan Year” means the calendar year.

(n)“Retainer Compensation” means the quarterly retainer fee paid to a Participant by the Company, but shall not include any meeting or committee fees or expense reimbursements paid to a Participant.

(o)“Second Prior Plan” means the Morrison Incorporated Stock Incentive and Deferred Compensation Plan for Directors, successor to the Morrison Incorporated Deferred Compensation Plan for Directors, as it existed prior to its amendment and restatement as the First Prior Plan.

(p)“Specified Participant” means a Participant who is a key employee (as defined in Code Section 416(i) without regard to Code Section 416(i)(5)) of the Company or an affiliate of the Company, any stock of which is publicly traded on an established securities market or otherwise as of the date of the Participant’s Termination from Service. For this purpose, a Participant is a key employee if the Participant meets the requirements of Code Section 416(i)(1)(A)(i), (ii), or (iii) (applied in accordance with the regulations thereunder and disregarding Code Section 416(i)(5)) at any time during the twelve (12) month period ending on December 31.  Notwithstanding the foregoing, a Participant who is a key employee determined under the preceding sentence will be deemed to be a Specified Participant for the period commencing as of April 1 following such December 31 and through the succeeding March 31 or as otherwise required by Code Section 409A.

(q)“Termination from Service” means the Participant’s separation from service with the Company and its affiliates as contemplated under Code Section 409A(a)(2)(A)(i) for reasons other than death.  Whether a Termination from Service takes place is determined based on the facts and circumstances surrounding the termination of the Participant’s service relationship and whether there is an intent for the Participant to provide significant services for the Company or any affiliate following such termination.

2

SECTION 2  THE DEFERRED COMPENSATION PLAN

2.1    The Purpose of the Plan.  The Plan is intended to provide an opportunity to non-employee directors of the Company to defer payment of all or a portion of their fees under an unfunded plan of deferred compensation.

2.2Administration of the Plan.  The Plan shall be administered by the Committee.  Subject to the provisions of the Plan, the Committee shall have full and conclusive authority to interpret the Plan; to prescribe, amend and rescind rules and regulations relating to the Plan; and to make all other determinations necessary or advisable for the proper administration of the Plan.  The Committee’s decisions shall be final and binding on all Participants.

2.3Eligibility.  Any member of the Board of Directors who is not an employee of the Company shall be a Participant.  A Participant shall cease to be eligible for continued participation in the Plan as of the date the Participant ceases to serve upon the Board of Directors.  A Participant who ceases to be eligible to participate in the Plan will no longer be eligible to make further deferrals under the Plan pursuant to Plan Section 3 but shall continue to be subject to all other terms of the Plan until the Participant’s Deferred Compensation Account is fully paid.  Any deferral election under Plan Section 3 then in effect as of the date the Participant ceases to be eligible to participate in the Plan will be cancelled immediately following the close of the fiscal quarter in which the Participant’s eligibility ceases, subject to any restrictions on the implementation of the cancellation under Code Section 409A, including any regulatory guidance issued thereunder.

SECTION 3  DEFERRAL OF COMPENSATION

3.1Deferral to Deferred Compensation Accounts.

(a)Each Participant may elect to defer his or her Nonretainer Compensation and/or Retainer Compensation, each in twenty-five percent (25%) increments, to his or her Deferred Compensation Account.  An election to defer Compensation hereunder shall be in writing and shall be made prior to the first day of each Plan Year for which such Compensation shall be earned.  Except as provided in Plan Section 3.1(b), all elections to defer Compensation under this Section 3.1 shall be irrevocable as of the last day of the Plan Year immediately preceding the Plan Year for which it is effective and may only be made pursuant to an agreement between the Participant and the Company, which shall be in such form and subject to such rules and limitations as the Plan Administrator may prescribe and shall specify the amount of the Compensation of the Participant that the Participant desires to defer.

(b)Notwithstanding the provisions of Plan Section 3.1(a), in the case of the first year a Participant becomes eligible to defer Compensation hereunder, such election must be made no later than thirty (30) days following the date the Participant becomes eligible to participate in the Plan (including any other plan with which it is aggregated), but only with respect to Compensation payable for services to be performed after the election is made.  All

3

elections to defer Compensation under this Section 3.1(b) shall be irrevocable as of the last day of the applicable thirty (30) day period.  A Participant who has ceased to be eligible to participate in the Plan may be treated as a new Participant in accordance with Plan Section 3.1(a) only if the Participant has not been eligible to participate in the Plan (including any other plan with which it is aggregated), other than with respect to the receipt of earnings credits under Plan Section 4.3, for a period of at least twenty-four (24) months.

3.2Revocation of Elections.  A Participant may not revoke or modify an election made pursuant to Plan Section 3 once it has become irrevocable.

3.3Prior Elections.  Any outstanding deferral elections by Participants under the First Prior Plan or under the Second Prior Plan shall continue to be effective.

SECTION 4  DEFERRED COMPENSATION ACCOUNTS

4.1Maintenance of Accounts.  A Deferred Compensation Account shall be established and maintained for each Participant.

4.2Crediting of Deferrals.  A Participant's Deferred Compensation Account shall be credited with that portion of the Participant's Compensation that the Participant has elected to defer to his or her Deferred Compensation Account pursuant to Plan Section 3.1 as of the date such Compensation would otherwise have been paid to the Participant.

4.3Crediting Income.  Each Deferred Compensation Account shall be credited as of the last day of each fiscal quarter of the Company with an assumed rate of income equal to the then prevailing rate payable with respect to ninety (90) day U.S. Treasury Bills, based on the weighted average balance of such account during such fiscal quarter.

SECTION 5  DISTRIBUTION OF DEFERRED COMPENSATION ACCOUNTS

5.1           Form of Payment  Amounts credited to a Participant’s Deferred Compensation Account shall be distributed in either a single lump sum or annual installments (not to exceed five (5)), as designated by the Participant in his or her initial election under the Plan, First Prior Plan or Second Prior Plan, as applicable.  A Participant’s one-time payment election pursuant to this Plan Section 5.1 must be made no later than the date his or her election pursuant to Plan Section 3.1 becomes irrevocable.  A Participant may not revoke or modify an election made pursuant to this Plan Section 5 once it has become irrevocable.

5.2           Timing of Payment.

(a)           General Rule.  Distribution of a Deferred Compensation Account shall be made (in the case of a lump sum payment) or commence (in the case of installment payments) in the calendar month immediately following the Participant’s seventieth (70th) birthday, or, if earlier, the January 15 or July 15 immediately following the date of the Participant’s Termination from Service.  However, if the Participant so elects in his or her

4

one-time payment election under the Plan, First Prior Plan or Second Prior Plan, as applicable, the distribution (in the case of a lump sum payment) or the commencement of the distribution (in the case of installment payments) of the Participant’s Deferred Compensation Account shall occur on any January 15 or July 15 subsequent to his or her Termination from Service as the Participant may elect in his or her one-time payment election; provided, however, that no such election shall have the effect of delaying the payment or commencement of payment (as applicable) beyond a Participant’s seventieth (70th) birthday.  If a Participant elects to have his or her Deferred Compensation Account distributed in installments, the amount of the first installment shall be a fraction of the value of the Participant’s Deferred Compensation Account, the numerator of which is one and the denominator of which is the total number of installments elected, and the amount of each subsequent installment shall be a fraction of the value (including income credited pursuant to Plan Section 4.3) on the date preceding each subsequent payment, the numerator of which is one and the denominator of which is the total number of installments elected minus the number of installments previously paid.

(b)           Delayed Payment.   Notwithstanding any provision of this Plan to the contrary, if the Participant is considered a Specified Participant upon his or her Termination from Service under such procedures as established by the Committee in accordance with Code Section 409A, then any amounts otherwise payable pursuant to Section 5.2(a) that would result in a tax under Code Section 409A if paid during the first six (6) months after the date of such Termination from Service (or if later, eighteen (18) months following the Effective Date) shall be withheld, starting with the payments latest in time during such six (6) (or, if applicable, eighteen (18)) month period), and paid to the Participant during the next succeeding calendar month.

5.3           Default Form and Timing of Payment. If an affirmative Participant election pursuant to Plan Section 5 is not validly in effect, the Participant’s Deferred Compensation Account shall be paid in a lump sum in the calendar month following the calendar month in which the Participant experiences his or her Termination from Service or, if earlier, the calendar month immediately following the Participant’s seventieth (70th) birthday.

5.4           Distribution upon Death.  In the event of the death of a Participant prior to the date on which he or she is entitled to the commencement of payments of his or her Deferred Compensation Account in full, the value of such Deferred Compensation Account shall be determined as of the day immediately following the Participant’s death and such amount shall be distributed in a single lump sum payment to the Participant’s designated beneficiary and payment shall be made in the calendar month following the calendar month in which the Participant died.  Upon the death of a Participant on or after the date on which he or she is entitled to the commencement of payments of his or her Deferred Compensation Account, the Participant’s designated beneficiary shall be entitled to receive the unpaid portion of the Participant’s Deferred Compensation Account.  These payments shall be made according to the manner and method by which payments were payable to the Participant.

5

5.5           Statement of Account.  During March and September of each Plan Year, each Participant shall be provided with statements of his or her Deferred Compensation Account as of the end of the third and first fiscal quarters of the Company, respectively.

5.6           Participant’s Rights Unsecured.  The right of any Participant to receive future distributions under the provisions of Plan Section 5 shall constitute an unsecured claim against the general assets of the Company.

SECTION 6  GENERAL PROVISIONS

6.1           Right to Remove Director.  Nothing in the Plan shall confer upon any Participant the right to continue as a member of the Board of Directors or affect the right of the Company to terminate a Participant’s directorship at any time.

6.2           Non-alienation of Benefits.  Other than as specifically provided with regard to the death of a Participant, no benefit under the Plan shall be subject in any manner to anticipation, alienation, sale, transfer, assignment, pledge, encumbrance or charge; and any attempt to do so shall be void.  No such benefit shall, prior to receipt by the Participant, be in any manner liable for or subject to the debts, contracts, liabilities, engagements or torts of the Participant.

6.3           Termination and Amendment of the Plan.

(a)The Board of Directors at any time may amend or terminate the Plan without stockholder approval; provided, however, that the Board of Directors may condition any amendment on the approval of stockholders of the Company if such approval is necessary or advisable with respect to tax, securities or other applicable laws.  No termination, modification or amendment of the Plan, without the consent of a Participant with respect to whom amounts have been credited to a Deferred Compensation Account shall adversely affect the rights of that Participant with respect to such Deferred Compensation Account.

(b)Notwithstanding the provisions of Plan Section 6.3(a), the Company reserves the right to:

(i)amend the Plan in any respect solely to comply with the provisions of Code Section 409A so as not to trigger any unintended tax consequences prior to the distribution of benefits provided herein;

(ii)pay the lump sum value of Participants’ Deferred Compensation Accounts if the Company determines that such payment benefits will not constitute an impermissible acceleration of payments under one of the exceptions provided in Treasury Regulations Section 1.409A-3(j)(4)(ix), or any successor

6

guidance; in such an event, payment shall be made at the earliest date permitted under such guidance; and/or

(iii)make payments hereunder before such payments are otherwise due if it determines that the provisions of the Plan fail to meet the requirements of Code Section 409A and the rules and regulations promulgated thereunder; provided, however, that such payment(s) may not exceed the amount required to be included in income as a result of such failure to comply the requirements of Code Section 409A and the rules and regulations promulgated thereunder.

6.4           Choice of Law.  The laws of the State of Georgia shall govern the Plan, to the extent not preempted by federal law.

6.5           Effective Date of Plan.  The Plan, as amended and restated herein, shall become effective on the Effective Date, except as otherwise provided herein.

IN WITNESS WHEREOF, the Company has caused this indenture to be executed as of the date first above written.

RUBY TUESDAY, INC.

/s/ James J. Buettgen

By:           James J. Buettgen                                                                           

Title: Chairman, President, and Chief Executive Officer

ATTEST:

/s/ Scarlett May

Scarlett May

Secretary

[CORPORATE SEAL]

7

EX-12.1

Ruby Tuesday, Inc
Unaudited Computation of Ratio of Consolidated Earnings to Fixed Charges
(Dollar Amounts in Millions)
	Thirty-nine  Weeks Ended		Fiscal Year Ended
	March 4,   2014			June 4,  2013		June 5, 2012		May 31, 2011		June 1, 2010		June 2, 2009
Earnings before fixed charges:
(Loss)/income from continuing operations before income taxes	$	(71.9)	$	(21.9)	$	(8.6)	$	57.1	$	58.6	$	(40.5)
Add equity in losses (deduct equity in earnings) of equity interest		-		-		-		0.6		0.3		-
Distribution of earnings from equity investees		-		-		-		-		-		-
Less Capitalized interest		0.4		0.5		0.5		0.6		0.6		0.5
		(71.5)		(21.4)		(8.1)		58.3		59.5		(40.0)
Fixed charges:
Interest expense		19.4		26.7		23.5		14.1		18.0		36.7
Interest portion of rent expense		12.3		16.6		15.8		14.7		14.0		15.7
Total fixed charges		31.7		43.3		39.3		28.8		32.0		52.4
Adjusted earnings from continuing operations before income taxes available to cover fixed charges	$	(39.8)	$	21.9	$	31.2	$	87.1	$	91.5	$	12.4
Ratio of earnings to fixed charges		(1.26)		0.51		0.79		3.03		2.86		0.24
Amount by which earnings were insufficient to cover fixed charges		(71.5)	$	(21.4)		(8.1)		N/A		N/A	$	(40.0)
* We are presenting the ratio above solely pursuant to the requirement set forth in Item 503 of Regulation S-K.  The earnings and fixed charges in the above ratio are calculated using the definitions as set for by Regulation S-K.

EX-31.1

EXHIBIT 31.1

CERTIFICATION PURSUANT TO

SECTION 302 OF THE SARBANES-OXLEY ACT OF 2002

I, James J. Buettgen, certify that:

1. I have reviewed this quarterly report on Form 10-Q of Ruby Tuesday, Inc.;

 

2.   Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3.   Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4.   The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

(a)   Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

(b)   Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

(c)   Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

(d)   Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of the annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5.   The registrant's other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

(a)   All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

(b)   Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.

Date: April 11, 2014	/s/ James J. Buettgen
	James J. Buettgen
	President and Chief Executive Officer

EX-31.2

EXHIBIT 31.2

CERTIFICATION PURSUANT TO

SECTION 302 OF THE SARBANES-OXLEY ACT OF 2002

I, Michael O. Moore, certify that:

1. I have reviewed this quarterly report on Form 10-Q of Ruby Tuesday, Inc.;

2.   Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3.   Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4.   The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

(a)   Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

(b)   Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

(c)   Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

(d)   Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of the annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5.   The registrant's other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

(a)   All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

(b)   Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.

Date: April 11, 2014	/s/ Michael O. Moore
	Michael O. Moore
	Executive Vice President –
	Chief Financial Officer and
	Assistant Secretary

EX-32.1

EXHIBIT 32.1

CERTIFICATION PURSUANT TO

18 U.S.C. SECTION 1350,

AS ADOPTED PURSUANT TO

SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

In connection with the Quarterly Report of Ruby Tuesday, Inc. (the “Company”) on Form 10-Q for the quarter ended March 4, 2014 (the “Report”), as filed with the Securities and Exchange Commission on the date hereof, I, James J. Buettgen, President and Chief Executive Officer of  the Company, certify, pursuant to 18 U.S.C. § 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that:

(1)   The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934, as amended; and

(2)   The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

Date: April 11, 2014	/s/ James J. Buettgen
	James J. Buettgen
	President and Chief Executive Officer

EX-32.2

EXHIBIT 32.2

CERTIFICATION PURSUANT TO

18 U.S.C. SECTION 1350,

AS ADOPTED PURSUANT TO

SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

In connection with the Quarterly Report of Ruby Tuesday, Inc. (the “Company”) on Form 10-Q for the quarter ended March 4, 2014 (the “Report”), as filed with the Securities and Exchange Commission on the date hereof, I, Michael O. Moore, Executive Vice President and Chief Financial Officer of the Company, certify, pursuant to 18 U.S.C. § 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that:

(1)   The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934, as amended; and

(2)   The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

Date: April 11, 2014	/s/ Michael O. Moore
	Michael O. Moore
	Executive Vice President –
	Chief Financial Officer and
	Assistant Secretary

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Note B - (Loss)/Earnings Per Share and Stock Repurchases (Details) - Antidilutive Shares Excluded from Computation of Diluted Loss Per Share In Thousands, unless otherwise specified	3 Months Ended			9 Months Ended
	Mar. 04, 2014		Mar. 05, 2013	Mar. 04, 2014		Mar. 05, 2013
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive securities	3,782		3,529	4,018		3,319
Equity Option [Member]
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive securities	2,692	[1]	2,410	2,882	[1]	2,116
Restricted Stock [Member]
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive securities	1,090	[1]	1,119	1,136	[1]	1,203

[1] Due to a net loss from continuing operations for the 13 and 39 weeks ended March 4, 2014, all then outstanding share-based awards were excluded from the computation of diluted loss per share.

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Note J - Employee Post-Employment Benefits (Details) - Components of Net Periodic Benefit Cost (USD $) In Thousands, unless otherwise specified	3 Months Ended				9 Months Ended
	Mar. 04, 2014		Mar. 05, 2013		Mar. 04, 2014		Mar. 05, 2013
Note J - Employee Post-Employment Benefits (Details) - Components of Net Periodic Benefit Cost [Line Items]
Amortization of prior service cost (a)	$ 12		$ (13)		$ 34		$ (38)
Recognized actuarial loss	489		618		1,466		1,854
Pension Benefits [Member]
Note J - Employee Post-Employment Benefits (Details) - Components of Net Periodic Benefit Cost [Line Items]
Service cost	89		115		267		345
Interest cost	435		525		1,303		1,575
Expected return on plan assets	(111)		(102)		(333)		(306)
Amortization of prior service cost (a)		[1]	26	[1]		[1]	78	[1]
Recognized actuarial loss	427		565		1,283		1,695
Net periodic benefit cost	840		1,129		2,520		3,387
Postretirement Medical and Life Benefits [Member]
Note J - Employee Post-Employment Benefits (Details) - Components of Net Periodic Benefit Cost [Line Items]
Service cost	4		3		10		9
Interest cost	16		15		50		45
Amortization of prior service cost (a)	(12)	[1]	(14)	[1]	(34)	[1]	(41)	[1]
Recognized actuarial loss	61		53		183		159
Net periodic benefit cost	$ 69		$ 57		$ 209		$ 172

[1] Prior service costs are amortized on a straight-line basis over the average remaining service period of employees expected to receive benefits.

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Note H - Long-Term Debt and Capital Leases (Details) (USD $)				0 Months Ended		9 Months Ended			9 Months Ended			9 Months Ended			9 Months Ended			9 Months Ended				9 Months Ended
	Mar. 04, 2014	Dec. 03, 2013	Jun. 04, 2013	Jan. 02, 2014 Subsequent Event [Member] Mortgages [Member]	Mar. 04, 2014 Real Property [Member] Revolving Credit Facility [Member]	Mar. 04, 2014 Federal Funds Rate [Member] Revolving Credit Facility [Member]	Mar. 04, 2014 London Interbank Offered Rate (LIBOR) [Member] Revolving Credit Facility [Member]	Dec. 02, 2013 Replaced Credit Facility ]Member] Revolving Credit Facility [Member]	Mar. 04, 2014 Senior Notes [Member]	Jun. 04, 2013 Senior Notes [Member]	May 14, 2012 Senior Notes [Member]	Mar. 04, 2014 Mortgages [Member]	Mar. 04, 2014 Revolving Credit Facility [Member]	Mar. 04, 2014 Franchise Facility Subcommitment [Member]	Mar. 04, 2014 Minimum [Member] Eurodollar [Member] Revolving Credit Facility [Member]	Mar. 04, 2014 Minimum [Member] Base Rate [Member] Revolving Credit Facility [Member]	Mar. 04, 2014 Minimum [Member] Mortgages [Member]	Mar. 04, 2014 Minimum [Member] Revolving Credit Facility [Member]	Mar. 04, 2014 Maximum [Member] Eurodollar [Member] Revolving Credit Facility [Member]	Mar. 04, 2014 Maximum [Member] Base Rate [Member] Revolving Credit Facility [Member]	Mar. 04, 2014 Maximum [Member] Mortgages [Member]	Mar. 04, 2014 Maximum [Member] Revolving Credit Facility [Member]	Mar. 04, 2014 Quarter Ending June 3, 2014 [Member] Revolving Credit Facility [Member]
Note H - Long-Term Debt and Capital Leases (Details) [Line Items]
Debt Instrument, Face Amount											$ 250,000,000
Debt Instrument, Interest Rate, Stated Percentage											7.625%
Debt Instrument, Unamortized Discount									2,670,000	3,083,000	3,700,000
Senior Note Amortized Term											8 years
Debt Instrument, Maturity Date									May 15, 2020
Redemption Price Percentage on Principal Amount									100.00%
Percentage of Senior Notes Redeemed from Equity Offering									35.00%
Debt Instrument, Term													4 years
Debt Instrument Repurchased Amount Authorized									20,000,000
Debt Instrument, Repurchased Face Amount									12,900,000
Debt Instrument, Repurchase Amount									13,000,000
Interest Paid									200,000
Gain (Loss) on Repurchase of Debt Instrument									(500,000)
Long-term Debt, Gross									222,113,000	235,000,000
Line of Credit Facility, Current Borrowing Capacity													50,000,000	25,000,000
Option to Increase Revolving Credit Facility Capacity													35,000,000
Line of Credit Facility, Maximum Borrowing Capacity								200,000,000
Write off of Deferred Debt Issuance Cost													(700,000)
Debt Instrument, Basis Spread on Variable Rate						0.50%	1.00%								2.50%	1.50%			3.50%	2.50%
Line of Credit Facility, Unused Capacity, Commitment Fee Percentage																		0.40%				0.75%
Debt Instrument, Collateral Amount, Appraised Value		101,400,000
Debt Instrument, Collateral Amount					80,800,000
Line of Credit Facility, Remaining Borrowing Capacity													37,600,000
Line of Credit Facility, Maximum Leverage Ratio for Fiscal Year													4.75
Line of Credit Facility, Minimum Fixed Charge Coverage Ratio for Fiscal Year													1.40
Line of Credit Facility Maximum Leverage Ratio Thereafter																							5.00
Line of Credit Facility, Minimum Fixed Charge Coverage Ratio Thereafter																							1.30
Payments of Debt Extinguishment Costs				5,000,000
Secured Debt	47,239,000		66,883,000									47,200,000
Debt Instrument, Maturity Date Range, Start												Jan. 31, 2015
Debt Instrument, Maturity Date Range, End												Nov. 30, 2022
Range of Loan Balances																	$ 100,000				$ 7,700,000
Debt Instrument, Interest Rate, Effective Percentage Rate Range, Minimum												7.60%
Debt Instrument, Interest Rate, Effective Percentage Rate Range, Maximum												10.92%

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Note P - Supplemental Condensed Consolidating Financial Statements (Details) - Condensed Consolidating Balance Sheets (USD $) In Thousands, unless otherwise specified	Mar. 04, 2014	Jun. 04, 2013	Mar. 05, 2013	Jun. 05, 2012
Current assets:
Cash and cash equivalents	$ 44,474	$ 52,907	$ 31,760	$ 48,184
Accounts receivable	5,044	4,834
Inventories	22,740	30,872
Income tax receivable	4,241	1,900
Deferred income tax assets	4,297	7,296
Other current assets	20,136	23,355
Total current assets	100,932	121,164
Property and equipment, net	808,328	859,830
Other assets	60,128	62,189
Total assets	969,388	1,043,183
Current liabilities:
Accounts payable	29,426	14,964
Accrued and other current liabilities	87,911	82,181
Current maturities of long-term debt, including capital leases	4,769	8,487
Total current liabilities	122,106	105,632
Long-term debt and capital leases, less current maturities	262,104	290,515
Deferred income tax liabilities	2,443	5,753
Other deferred liabilities	121,523	124,448
Total liabilities	508,176	526,348
Shareholders’ equity:
Common stock	614	612
Capital in excess of par value	74,470	67,596
Retained earnings	395,640	459,572
Accumulated other comprehensive loss	(9,512)	(10,945)
Total shareholders’ equity	461,212	516,835
Total liabilities & shareholders’ equity	969,388	1,043,183
Consolidation, Eliminations [Member]
Current assets:
Cash and cash equivalents	0
Income tax receivable	(129,498)	(116,429)
Total current assets	(129,498)	(116,429)
Investment in subsidiaries	(153,842)	(167,887)
Due from/(to) subsidiaries	(329,366)	(307,068)
Total assets	(612,706)	(591,384)
Current liabilities:
Income tax payable	(129,498)	(116,429)
Total current liabilities	(129,498)	(116,429)
Due to/(from) subsidiaries	(329,366)	(307,068)
Total liabilities	(458,864)	(423,497)
Shareholders’ equity:
Retained earnings	(153,842)	(167,887)
Total shareholders’ equity	(153,842)	(167,887)
Total liabilities & shareholders’ equity	(612,706)	(591,384)
Parent Company [Member]
Current assets:
Cash and cash equivalents	44,134	52,635	31,517	47,986
Accounts receivable	2,368	1,854
Inventories	16,092	21,961
Income tax receivable	133,739	118,329
Deferred income tax assets	455	5,372
Other current assets	16,856	19,519
Total current assets	213,644	219,670
Property and equipment, net	598,601	635,478
Investment in subsidiaries	153,842	167,887
Due from/(to) subsidiaries	89,095	76,485
Other assets	47,140	46,812
Total assets	1,102,322	1,146,332
Current liabilities:
Accounts payable	23,922	11,725
Accrued and other current liabilities	50,843	47,775
Current maturities of long-term debt, including capital leases	(348)	(347)
Total current liabilities	74,417	59,153
Long-term debt and capital leases, less current maturities	219,981	232,462
Deferred income tax liabilities	(1,399)	(1,070)
Due to/(from) subsidiaries	240,271	230,583
Other deferred liabilities	107,840	108,369
Total liabilities	641,110	629,497
Shareholders’ equity:
Common stock	614	612
Capital in excess of par value	74,470	67,596
Retained earnings	395,640	459,572
Accumulated other comprehensive loss	(9,512)	(10,945)
Total shareholders’ equity	461,212	516,835
Total liabilities & shareholders’ equity	1,102,322	1,146,332
Guarantor Subsidiaries [Member]
Current assets:
Cash and cash equivalents	340	272	243	198
Accounts receivable	2,676	2,980
Inventories	6,648	8,911
Deferred income tax assets	3,842	1,924
Other current assets	3,280	3,836
Total current assets	16,786	17,923
Property and equipment, net	209,727	224,352
Due from/(to) subsidiaries	240,271	230,583
Other assets	12,988	15,377
Total assets	479,772	488,235
Current liabilities:
Accounts payable	5,504	3,239
Accrued and other current liabilities	37,068	34,406
Current maturities of long-term debt, including capital leases	5,117	8,834
Income tax payable	129,498	116,429
Total current liabilities	177,187	162,908
Long-term debt and capital leases, less current maturities	42,123	58,053
Deferred income tax liabilities	3,842	6,823
Due to/(from) subsidiaries	89,095	76,485
Other deferred liabilities	13,683	16,079
Total liabilities	325,930	320,348
Shareholders’ equity:
Retained earnings	153,842	167,887
Total shareholders’ equity	153,842	167,887
Total liabilities & shareholders’ equity	$ 479,772	$ 488,235

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Note J - Employee Post-Employment Benefits (Details) - Changes in the Amounts Recognized in Accumulated Other Comprehensive Income/(Loss) (USD $) In Thousands, unless otherwise specified	3 Months Ended		9 Months Ended
	Mar. 04, 2014	Mar. 05, 2013	Mar. 04, 2014	Mar. 05, 2013
Changes in the Amounts Recognized in Accumulated Other Comprehensive Income/(Loss) [Abstract]
Recognized actuarial loss	$ 489	$ 618	$ 1,466	$ 1,854
Amortization of prior service cost	(12)	13	(34)	38
	477	631	1,432	1,892
Income taxes		(251)		(751)
Pension liability reclassification, net of tax	$ 477	$ 380	$ 1,432	$ 1,141

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Note G - Property, Equipment, Assets Held for Sale, Operating Leases, and Sale-Leaseback Transactions (Details) (USD $)	3 Months Ended		9 Months Ended
	Mar. 04, 2014	Mar. 05, 2013	Mar. 04, 2014	Mar. 05, 2013	Jun. 04, 2013
Note G - Property, Equipment, Assets Held for Sale, Operating Leases, and Sale-Leaseback Transactions (Details) [Line Items]
Assets Held-for-sale, Current	$ 6,635,000		$ 6,635,000		$ 9,175,000
Property, Plant and Equipment, Disposals	1,900,000	3,300,000	10,100,000	4,900,000
Gain (Loss) on Disposition of Property Plant Equipment	600,000		800,000	500,000
Proceeds from Sale of Property, Plant, and Equipment, Net	2,500,000		10,800,000
Proceeds from Sale of Property, Plant, and Equipment		3,400,000	10,949,000	5,451,000
Percentage of Restaurants Located on Leased Properties	56.00%		56.00%
Number of Restaurants	699		699
Percentage of Restaurants Located on Leased Land	68.00%		68.00%
Percentage of Restaurants Located on Leased Land and Building	32.00%		32.00%
Sale Leaseback Transaction, Gross Proceeds		8,800,000	5,900,000	40,800,000
Sale Leaseback Transaction Costs		400,000	300,000	2,000,000
Sale Leaseback Transaction, Net Book Value	4,800,000		4,800,000
Sale Leaseback Transaction Lease Terms 1			15 years
Sale Leaseback Transaction Lease Renewal Terms			20 years
Sale Leaseback Transaction, Deferred Gain, Gross	800,000		800,000
Sale Leaseback Transactions Current Portion of Deferred Gain	1,100,000		1,100,000		1,000,000
Sale Leaseback Transactions Noncurrent Portion of Deferred Gain	13,200,000		13,200,000
Amortization of Deferred Charges	300,000	200,000	800,000	500,000
Construction in Progress [Member]
Note G - Property, Equipment, Assets Held for Sale, Operating Leases, and Sale-Leaseback Transactions (Details) [Line Items]
Assets Held for Sale, Property Plant and Equipment, Noncurrent	16,700,000		16,700,000		14,800,000
Company Owned Ruby Tuesday Concept Restaurants [Member]
Note G - Property, Equipment, Assets Held for Sale, Operating Leases, and Sale-Leaseback Transactions (Details) [Line Items]
Sale Leaseback Transaction, Number of Restaurants			3	18
Land and Building Transactions [Member]
Note G - Property, Equipment, Assets Held for Sale, Operating Leases, and Sale-Leaseback Transactions (Details) [Line Items]
Sale Leaseback Transaction, Number of Restaurants		4
Four Company Owned Restuarants [Member]
Note G - Property, Equipment, Assets Held for Sale, Operating Leases, and Sale-Leaseback Transactions (Details) [Line Items]
Sale Leaseback Transaction, Net Book Value		7,300,000		7,300,000
Sale Leaseback Transaction, Deferred Gain, Gross		1,100,000		1,100,000
Eighteen Company Owned Restaurants [Member]
Note G - Property, Equipment, Assets Held for Sale, Operating Leases, and Sale-Leaseback Transactions (Details) [Line Items]
Sale Leaseback Transaction, Net Book Value		30,000,000		30,000,000
Sale Leaseback Transaction, Deferred Gain, Gross		$ 8,800,000		$ 8,800,000

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Note M - Segment Reporting (Tables)

9 Months Ended

Mar. 04, 2014

Note M - Segment Reporting (Tables) [Line Items]

Reconciliation of Operating Profit (Loss) from Segments to Consolidated [Table Text Block]

	Thirteen weeks ended						Thirty-nine weeks ended
	March 4, 2014			March 5, 2013			March 4, 2014			March 5, 2013
Segment profit	$	24,140		$	29,864		$	30,624		$	74,086
Less:
Depreciation and amortization		(13,912	)		(15,475	)		(43,384	)		(46,854	)
Unallocated selling, general and administrative expenses		(11,551	)		(4,440	)		(37,208	)		(12,691	)
Preopening expenses	–				(237	)		(395	)		(636	)
Trademark impairment		(855	)	–				(855	)	–
Interest expense, net		(5,967	)		(6,591	)		(19,340	)		(20,146	)
Other expense, net		(55	)		(420	)		(1,341	)		(807	)
(Loss)/income from continuing operations before income taxes	$	(8,200	)	$	2,701		$	(71,899	)	$	(7,048	)

Income Statement [Member]

Note M - Segment Reporting (Tables) [Line Items]

Schedule of Segment Reporting Information, by Segment [Table Text Block]

	Thirteen weeks ended					Thirty-nine weeks ended
	March 4, 2014		March 5, 2013			March 4, 2014			March 5, 2013
Revenues:
Ruby Tuesday concept	$	290,752	$	303,662		$	845,514		$	923,586
Lime Fresh concept		4,800		3,721			15,921			11,797
Total revenues	$	295,552	$	307,383		$	861,435		$	935,383
Segment profit/(loss):
Ruby Tuesday concept	$	24,139	$	31,305		$	34,860		$	77,878
Lime Fresh concept		1		(1,441	)		(4,236	)		(3,792	)
Total segment profit	$	24,140	$	29,864		$	30,624		$	74,086
Depreciation and amortization:
Ruby Tuesday concept	$	12,840	$	14,314		$	40,088		$	43,455
Lime Fresh concept		473		576			1,517			1,671
Support center and other		599		585			1,779			1,728
Total depreciation and amortization	$	13,912	$	15,475		$	43,384		$	46,854
Capital expenditures:
Ruby Tuesday concept						$	18,744		$	18,271
Lime Fresh concept							2,793			5,548
Support center and other							1,020			3,914
Total capital expenditures						$	22,557		$	27,733

Balance Sheet [Member]

Note M - Segment Reporting (Tables) [Line Items]

Schedule of Segment Reporting Information, by Segment [Table Text Block]

	March 4, 2014		June 4, 2013
Total assets:
Ruby Tuesday concept	$	836,575	$	893,750
Lime Fresh concept		17,725		18,943
Support center and other		115,088		130,490
Total assets	$	969,388	$	1,043,183

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Note K - Income Taxes (Details) (USD $)	3 Months Ended		9 Months Ended
	Mar. 04, 2014	Mar. 05, 2013	Mar. 04, 2014	Mar. 05, 2013	Jun. 04, 2013
Note K - Income Taxes (Details) [Line Items]
Income Tax Expense (Benefit)	$ (807,000)	$ (2,015,000)	$ (7,870,000)	$ (10,634,000)
Deferred Tax Assets, Valuation Allowance	50,600,000		50,600,000		24,600,000
Valuation Allowance, Deferred Tax Asset, Change in Amount	5,600,000		27,500,000
Unrecognized Tax Benefits	6,900,000		6,900,000		13,000,000
Unrecognized Tax Benefits that Would Impact Effective Tax Rate	2,300,000		2,300,000		3,500,000
Unrecognized Tax Benefits, Income Tax Penalties and Interest Accrued	600,000		600,000		900,000
Accrual Interest and Penalties Increase Decrease			300,000
Reasonably Possible Amounts Will Change Within Next Twelve Months [Member]
Note K - Income Taxes (Details) [Line Items]
Unrecognized Tax Benefits	300,000		300,000
Affected the Effective Tax Rate [Member]
Note K - Income Taxes (Details) [Line Items]
Accrual Interest and Penalties Increase Decrease			$ 100,000

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Note P - Supplemental Condensed Consolidating Financial Statements (Details) - Condensed Consolidated Statements of Operations and Comprehensive Loss (USD $) In Thousands, unless otherwise specified	3 Months Ended		9 Months Ended
	Mar. 04, 2014	Mar. 05, 2013	Mar. 04, 2014	Mar. 05, 2013
Revenue:
Restaurant sales and operating revenue	$ 293,964	$ 305,835	$ 856,775	$ 930,699
Franchise revenue	1,588	1,548	4,660	4,684
Total revenue	295,552	307,383	861,435	935,383
Operating costs and expenses:
Cost of merchandise	80,980	83,795	238,587	254,505
Payroll and related costs	101,351	105,364	301,601	313,287
Other restaurant operating costs	64,161	61,946	196,984	193,448
Depreciation	13,327	14,614	41,451	44,303
Selling, general, and administrative	33,340	30,276	107,386	111,823
Closures and impairments	3,771	2,096	25,947	5,074
Trademark impairment	855		855
Interest expense, net	5,967	6,591	19,340	20,146
Gain/(Loss) on extinguishment of debt			1,183	(155)
Total costs and expenses	303,752	304,682	933,334	942,431
(Loss)/income from continuing operations before income taxes	(8,200)	2,701	(71,899)	(7,048)
Provision/(benefit) for income taxes from continuing operations	(807)	(2,015)	(7,870)	(10,634)
(Loss)/income from continuing operations	(7,393)	4,716	(64,029)	3,586
(Loss)/income from discontinued operations, net of tax	86	(2,520)	97	(13,859)
Net (loss)/income	(7,307)	2,196	(63,932)	(10,273)
Other comprehensive income:
Pension liability reclassification, net of tax	477	380	1,432	1,141
Total comprehensive (loss)/income	(6,830)	2,576	(62,500)	(9,132)
Consolidation, Eliminations [Member]
Operating costs and expenses:
Equity in earnings of subsidiaries	8,886	12,369	13,307	33,835
Total costs and expenses	8,886	12,369	13,307	33,835
(Loss)/income from continuing operations before income taxes	(8,886)	(12,369)	(13,307)	(33,835)
(Loss)/income from continuing operations	(8,886)	(12,369)	(13,307)	(33,835)
(Loss)/income from discontinued operations, net of tax		158		810
Net (loss)/income	(8,886)	(12,211)	(13,307)	(33,025)
Other comprehensive income:
Total comprehensive (loss)/income	(8,886)	(12,211)	(13,307)	(33,025)
Parent Company [Member]
Revenue:
Restaurant sales and operating revenue	212,249	221,316	621,181	675,501
Franchise revenue	63	25	182	159
Total revenue	212,312	221,341	621,363	675,660
Operating costs and expenses:
Cost of merchandise	58,550	60,626	173,397	184,827
Payroll and related costs	71,742	74,802	214,633	222,481
Other restaurant operating costs	46,765	44,242	141,660	137,844
Depreciation	9,787	10,751	30,359	32,623
Selling, general, and administrative	16,532	19,747	68,250	73,737
Intercompany selling, general, and administrative allocations	14,908	16,761	43,679	51,245
Closures and impairments	2,407	1,235	15,630	4,210
Equity in earnings of subsidiaries	(8,886)	(12,369)	(13,307)	(33,835)
Interest expense, net	5,089	5,195	15,320	15,836
Intercompany interest expense/(income)	3,274	3,482	9,688	10,304
Gain/(Loss) on extinguishment of debt			1,183	(155)
Total costs and expenses	220,168	224,472	700,492	699,117
(Loss)/income from continuing operations before income taxes	(7,856)	(3,131)	(79,129)	(23,457)
Provision/(benefit) for income taxes from continuing operations	(463)	(7,847)	(15,100)	(27,043)
(Loss)/income from continuing operations	(7,393)	4,716	(64,029)	3,586
(Loss)/income from discontinued operations, net of tax	86	(2,520)	97	(13,859)
Net (loss)/income	(7,307)	2,196	(63,932)	(10,273)
Other comprehensive income:
Pension liability reclassification, net of tax	477	380	1,432	1,141
Total comprehensive (loss)/income	(6,830)	2,576	(62,500)	(9,132)
Guarantor Subsidiaries [Member]
Revenue:
Restaurant sales and operating revenue	81,715	84,519	235,594	255,198
Franchise revenue	1,525	1,523	4,478	4,525
Total revenue	83,240	86,042	240,072	259,723
Operating costs and expenses:
Cost of merchandise	22,430	23,169	65,190	69,678
Payroll and related costs	29,609	30,562	86,968	90,806
Other restaurant operating costs	17,396	17,704	55,324	55,604
Depreciation	3,540	3,863	11,092	11,680
Selling, general, and administrative	16,808	10,529	39,136	38,086
Intercompany selling, general, and administrative allocations	(14,908)	(16,761)	(43,679)	(51,245)
Closures and impairments	1,364	861	10,317	864
Trademark impairment	855		855
Interest expense, net	878	1,396	4,020	4,310
Intercompany interest expense/(income)	(3,274)	(3,482)	(9,688)	(10,304)
Total costs and expenses	74,698	67,841	219,535	209,479
(Loss)/income from continuing operations before income taxes	8,542	18,201	20,537	50,244
Provision/(benefit) for income taxes from continuing operations	(344)	5,832	7,230	16,409
(Loss)/income from continuing operations	8,886	12,369	13,307	33,835
(Loss)/income from discontinued operations, net of tax		(158)		(810)
Net (loss)/income	8,886	12,211	13,307	33,025
Other comprehensive income:
Total comprehensive (loss)/income	$ 8,886	$ 12,211	$ 13,307	$ 33,025

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Note B - (Loss)/Earnings Per Share and Stock Repurchases (Tables)

9 Months Ended

Mar. 04, 2014

Earnings Per Share [Abstract]

Schedule of Earnings Per Share, Basic and Diluted [Table Text Block]

	Thirteen weeks ended						Thirty-nine weeks ended
	March 4, 2014			March 5, 2013			March 4, 2014			March 5, 2013
(Loss)/income from continuing operations	$	(7,393	)	$	4,716		$	(64,029	)	$	3,586
Income/(loss) from discontinued operations, net of tax		86			(2,520	)		97			(13,859	)
Net (loss)/income	$	(7,307	)	$	2,196		$	(63,932	)	$	(10,273	)
Weighted-average common shares outstanding		60,351			59,778			60,191			61,532
Dilutive effect of stock options and restricted stock	–				534		–				454
Weighted average common and dilutive potential common shares outstanding		60,351			60,312			60,191			61,986
(Loss)/income per share – Basic
(Loss)/income from continuing operations	$	(0.12	)	$	0.08		$	(1.06	)	$	0.06
Income/(loss) from discontinued operations		0.00			(0.04	)		0.00			(0.23	)
Net (loss)/income per share	$	(0.12	)	$	0.04		$	(1.06	)	$	(0.17	)
(Loss)/income per share – Diluted
(Loss)/income from continuing operations	$	(0.12	)	$	0.08		$	(1.06	)	$	0.06
Income/(loss) from discontinued operations		0.00			(0.04	)		0.00			(0.22	)
Net (loss)/income per share	$	(0.12	)	$	0.04		$	(1.06	)	$	(0.16	)

Schedule of Antidilutive Securities Excluded from Computation of Earnings Per Share [Table Text Block]

	Thirteen weeks ended					Thirty-nine weeks ended
	March 4, 2014			March 5, 2013		March 4, 2014			March 5, 2013
Stock options		2,692	*		2,410		2,882	*		2,116
Restricted shares		1,090	*		1,119		1,136	*		1,203
Total		3,782			3,529		4,018			3,319

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Note I - Closures and Impairments Expense, Including Trademark Impairments (Details) (USD $)	3 Months Ended		9 Months Ended		3 Months Ended							9 Months Ended
	Mar. 04, 2014	Mar. 05, 2013	Mar. 04, 2014	Mar. 05, 2013	Mar. 04, 2014 Lime Fresh [Member] Trademarks [Member]	Jun. 04, 2013 Lime Fresh [Member] Trademarks [Member]	Mar. 04, 2014 Closed Upon Expiration of Lease [Member]	Jun. 03, 2014 Scenario, Forecast [Member] Minimum [Member]	Jun. 03, 2014 Scenario, Forecast [Member] Maximum [Member]	Dec. 03, 2013 Early Restaurant Closures [Member]	Mar. 04, 2014 Open Restaurants With Deteriorating Operational Performance [Member]	Mar. 04, 2014 Open Restaurants With Deteriorating Operational Performance [Member]	Mar. 04, 2014	Mar. 04, 2014	Mar. 04, 2014 Open more than one year with rolling 12-month negative cash flows [Member]	Mar. 04, 2014 Impaired to salvage value [Member]	Mar. 04, 2014 Not impaired to salvage value [Member]	Mar. 04, 2014 Located on owned properties [Member]
Note I - Closures and Impairments Expense, Including Trademark Impairments (Details) [Line Items]
Number of Restaurants Closed	24						11
Number of Restaurants Scheduled for Closure								6	9
Closures and Impairments, Net (in Dollars)	$ 3,771,000	$ 2,096,000	$ 25,947,000	$ 5,074,000						$ 4,400,000	$ 2,200,000	$ 12,500,000
Number of Restaurants	699		699										5	27	58	39	19	7
Impairment of Intangible Assets, Finite-lived (in Dollars)	855,000		855,000		900,000	5,000,000
Finite-Lived Intangible Assets, Net (in Dollars)					3,700,000
Negative cash flow restaurants not recorded at salvage value, remaining net book value (in Dollars)	$ 19,700,000		$ 19,700,000

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Note D - Discontinued Operations (Details) - Financial Results of Discontinued Operations (USD $) In Thousands, unless otherwise specified	3 Months Ended		9 Months Ended
	Mar. 04, 2014	Mar. 05, 2013	Mar. 04, 2014	Mar. 05, 2013
Financial Results of Discontinued Operations [Abstract]
Restaurant sales and operating revenue		$ 2,421		$ 11,575
Income/(loss) before income taxes	77	(4,405)	2	(23,172)
Benefit for income taxes	(9)	(1,885)	(95)	(9,313)
Income/(loss) from discontinued operations	$ 86	$ (2,520)	$ 97	$ (13,859)

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Note B - (Loss)/Earnings Per Share and Stock Repurchases (Details) (USD $) In Millions, unless otherwise specified	9 Months Ended
	Mar. 04, 2014
Earnings Per Share [Abstract]
Stock Repurchased and Retired During Period, Shares	0.1
Stock Repurchased and Retired During Period, Value (in Dollars)	$ 0.6
Stock Repurchase Program, Remaining Number of Shares Authorized to be Repurchased	11.8

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Note I - Closures and Impairments Expense, Including Trademark Impairments (Details) - Future Liabilites Associated with Closed Properties (USD $) In Thousands, unless otherwise specified	3 Months Ended		9 Months Ended
	Mar. 04, 2014	Mar. 05, 2013	Mar. 04, 2014	Mar. 05, 2013
Note I - Closures and Impairments Expense, Including Trademark Impairments (Details) - Future Liabilites Associated with Closed Properties [Line Items]
Balance at June 4, 2013			$ 8,727
Closing expense including rent and other lease charges			4,548
Payments			(4,708)
Other adjustments			593
Balance at March 4, 2014	9,160		9,160
Continuing Operations [Member]
Note I - Closures and Impairments Expense, Including Trademark Impairments (Details) - Future Liabilites Associated with Closed Properties [Line Items]
Balance at June 4, 2013			6,417
Closing expense including rent and other lease charges	257	1,340	4,554	1,714
Payments			(3,628)
Other adjustments			591
Balance at March 4, 2014	7,934		7,934
Discontinued Operations [Member]
Note I - Closures and Impairments Expense, Including Trademark Impairments (Details) - Future Liabilites Associated with Closed Properties [Line Items]
Balance at June 4, 2013			2,310
Closing expense including rent and other lease charges			(6)
Payments			(1,080)
Other adjustments			2
Balance at March 4, 2014	$ 1,226		$ 1,226

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Note O - Fair Value Measurements (Details) - Fair Values Financial Assets and Liabilities Measured on a Non-recurring Basis (Fair Value, Inputs, Level 2 [Member], USD $) In Thousands, unless otherwise specified	Mar. 04, 2014		Jun. 04, 2013
Note O - Fair Value Measurements (Details) - Fair Values Financial Assets and Liabilities Measured on a Non-recurring Basis [Line Items]
Assets, Fair Value Disclosure, Nonrecurring	$ 31,291		$ 29,808
Assets Held-for-sale [Member]
Note O - Fair Value Measurements (Details) - Fair Values Financial Assets and Liabilities Measured on a Non-recurring Basis [Line Items]
Assets, Fair Value Disclosure, Nonrecurring	23,299	[1]	24,006	[1]
Assets Held-for-Use [Member]
Note O - Fair Value Measurements (Details) - Fair Values Financial Assets and Liabilities Measured on a Non-recurring Basis [Line Items]
Assets, Fair Value Disclosure, Nonrecurring	$ 7,992		$ 5,802

[1] Included in the carrying value of long-lived assets held for sale as of March 4, 2014 and June 4, 2013 are $16.7 million and $14.8 million, respectively, of assets included in Construction in progress in the Condensed Consolidated Balance Sheets as we do not expect to sell these assets within the next 12 months.

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Note M - Segment Reporting (Details) - Financial Results by Reportable Segment (USD $) In Thousands, unless otherwise specified	3 Months Ended		9 Months Ended
	Mar. 04, 2014	Mar. 05, 2013	Mar. 04, 2014	Mar. 05, 2013
Revenues:
Revenues	$ 295,552	$ 307,383	$ 861,435	$ 935,383
Segment profit/(loss):
Segment profit	24,140	29,864	30,624	74,086
Depreciation and amortization:
Depreciation and amortization	13,912	15,475	43,384	46,854
Capital expenditures:
Capital expenditures			22,557	27,733
Ruby Tuesday [Member]
Revenues:
Revenues	290,752	303,662	845,514	923,586
Segment profit/(loss):
Segment profit	24,139	31,305	34,860	77,878
Depreciation and amortization:
Depreciation and amortization	12,840	14,314	40,088	43,455
Capital expenditures:
Capital expenditures			18,744	18,271
Lime Fresh [Member]
Revenues:
Revenues	4,800	3,721	15,921	11,797
Segment profit/(loss):
Segment profit	1	(1,441)	(4,236)	(3,792)
Depreciation and amortization:
Depreciation and amortization	473	576	1,517	1,671
Capital expenditures:
Capital expenditures			2,793	5,548
Support Center and Other [Member]
Depreciation and amortization:
Depreciation and amortization	599	585	1,779	1,728
Capital expenditures:
Capital expenditures			$ 1,020	$ 3,914

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Note G - Property, Equipment, Assets Held for Sale, Operating Leases, and Sale-Leaseback Transactions (Details) - Property and Equipment, Net (USD $) In Thousands, unless otherwise specified	Mar. 04, 2014		Jun. 04, 2013
Property, Plant and Equipment [Line Items]
Property and equipment, gross	$ 1,378,169		$ 1,448,444
Less accumulated depreciation	569,841		588,614
	808,328		859,830
Land [Member]
Property, Plant and Equipment [Line Items]
Property and equipment, gross	214,691		222,385
Building [Member]
Property, Plant and Equipment [Line Items]
Property and equipment, gross	433,174		448,681
Building Improvements [Member]
Property, Plant and Equipment [Line Items]
Property and equipment, gross	371,552		402,371
Restaurant Equipment [Member]
Property, Plant and Equipment [Line Items]
Property and equipment, gross	250,907		260,576
Other Equipment [Member]
Property, Plant and Equipment [Line Items]
Property and equipment, gross	85,881		91,351
Construction in Progress and Other [Member]
Property, Plant and Equipment [Line Items]
Property and equipment, gross	$ 21,964	[1]	$ 23,080	[1]

[1] Included in Construction in progress and other as of March 4, 2014 and June 4, 2013 are $16.7 million and $14.8 million, respectively, of assets held for sale that are not classified as such in the Condensed Consolidated Balance Sheets as we do not expect to sell these assets within the next 12 months. These assets primarily consist of parcels of land upon which we have no intention to build restaurants.

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Note D - Discontinued Operations

9 Months Ended

Mar. 04, 2014

Discontinued Operations and Disposal Groups [Abstract]

Disposal Groups, Including Discontinued Operations, Disclosure [Text Block]

NOTE D – DISCONTINUED OPERATIONS

In an effort to focus primarily on the successful sales turnaround of our core Ruby Tuesday concept and secondly, to improve the financial performance of our Lime Fresh concept, we closed all 13 Marlin & Ray’s restaurants, the Company’s one Wok Hay restaurant, and our two Truffles restaurants during fiscal 2013. We have classified the results of operations of our Company-owned Marlin & Ray’s, Wok Hay, and Truffles concepts as discontinued operations for all periods presented. The results of operations of our discontinued operations are as follows (in thousands):

	Thirteen weeks ended						Thirty-nine weeks ended
	March 4, 2014			March 5, 2013			March 4, 2014			March 5, 2013
Restaurant sales and operating revenue	$	–		$	2,421		$	–		$	11,575
Income/(loss) before income taxes	$	77		$	(4,405	)	$	2		$	(23,172	)
Benefit for income taxes		(9	)		(1,885	)		(95	)		(9,313	)
Income/(loss) from discontinued operations	$	86		$	(2,520	)	$	97		$	(13,859	)

We had $2.8 million of assets associated with the closed concept restaurants, which are included in Property and equipment, net in our June 4, 2013 Condensed Consolidated Balance Sheet. There were no assets associated with the closed concept restaurants included within Property and equipment, net in our March 4, 2014 Condensed Consolidated Balance Sheet. Additionally, included within Assets held for sale in our March 4, 2014 and June 4, 2013 Condensed Consolidated Balance Sheets are $0.8 million and $4.2 million, respectively, of assets associated with the closed concept restaurants. See Note I to the Condensed Consolidated Financial Statements for a discussion of closed restaurant lease reserves as of March 4, 2014 and June 4, 2013 associated with the closed concept restaurants.

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Note M - Segment Reporting (Details) - Financial Results by Reportable Segment (USD $) In Thousands, unless otherwise specified	Mar. 04, 2014	Jun. 04, 2013
Total assets:
Total assets	$ 969,388	$ 1,043,183
Ruby Tuesday [Member]
Total assets:
Total assets	836,575	893,750
Lime Fresh [Member]
Total assets:
Total assets	17,725	18,943
Support Center and Other [Member]
Total assets:
Total assets	$ 115,088	$ 130,490

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Note E - Accounts Receivable (Details) (USD $) In Thousands, unless otherwise specified	Mar. 04, 2014	Jun. 04, 2013
Note E - Accounts Receivable (Details) [Line Items]
Other Receivables, Net, Current	$ 2,789	$ 3,043
Third-party Gift Card Sales [Member]
Note E - Accounts Receivable (Details) [Line Items]
Other Receivables, Net, Current	900	1,800
Due from Distributor [Member]
Note E - Accounts Receivable (Details) [Line Items]
Other Receivables, Net, Current	900	400
Due from Landlords [Member]
Note E - Accounts Receivable (Details) [Line Items]
Other Receivables, Net, Current	100	500
Sales and Other Miscellaneous Tax Refunds [Member]
Note E - Accounts Receivable (Details) [Line Items]
Other Receivables, Net, Current	$ 300	$ 100

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Note H - Long-Term Debt and Capital Leases (Tables)

9 Months Ended

Mar. 04, 2014

Disclosure Text Block Supplement [Abstract]

Schedule of Long-term Debt Instruments [Table Text Block]

	March 4, 2014			June 4, 2013
Senior unsecured notes	$	222,113		$	235,000
Unamortized discount		(2,670	)		(3,083	)
Senior unsecured notes less unamortized discount		219,443			231,917
Revolving credit facility	–			–
Mortgage loan obligations		47,239			66,883
Capital lease obligations		191			202
		266,873			299,002
Less current maturities		4,769			8,487
	$	262,104		$	290,515

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Note G - Property, Equipment, Assets Held for Sale, Operating Leases, and Sale-Leaseback Transactions (Tables)

9 Months Ended

Mar. 04, 2014

Property, Plant and Equipment [Abstract]

Property, Plant and Equipment [Table Text Block]

	March 4, 2014		June 4, 2013
Land	$	214,691	$	222,385
Buildings		433,174		448,681
Improvements		371,552		402,371
Restaurant equipment		250,907		260,576
Other equipment		85,881		91,351
Construction in progress and other*		21,964		23,080
		1,378,169		1,448,444
Less accumulated depreciation		569,841		588,614
	$	808,328	$	859,830

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Note J - Employee Post-Employment Benefits (Details) - Roll Forward of Employee Separation Obligations (USD $) In Thousands, unless otherwise specified	3 Months Ended	9 Months Ended
	Mar. 04, 2014	Mar. 04, 2014	Mar. 04, 2014 Severance Plan [Member]	Jun. 04, 2013 Severance Plan [Member]
Note J - Employee Post-Employment Benefits (Details) - Roll Forward of Employee Separation Obligations [Line Items]
Balance			$ 875	$ 310
Employee severance and unused vacation accruals	300	3,541
Cash payments		(2,976)
Balance			$ 875	$ 310

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Note E - Accounts Receivable (Details) - Accounts Receivable, Current (USD $) In Thousands, unless otherwise specified	Mar. 04, 2014	Jun. 04, 2013
Accounts, Notes, Loans and Financing Receivable [Line Items]
Accounts receivable, current	$ 5,044	$ 4,834
Amounts due from franchisees	1,294	917
Other receivables	2,789	3,043
Rebates [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Accounts receivable, current	$ 961	$ 874

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Note I - Closures and Impairments Expense, Including Trademark Impairments (Tables)

9 Months Ended

Mar. 04, 2014

Disclosure Text Block Supplement [Abstract]

Closures and Impairment Expenses [Table Text Block]

	Thirteen weeks ended						Thirty-nine weeks ended
	March 4, 2014			March 5, 2013			March 4, 2014			March 5, 2013
Closures and impairments from continuing operations:
Property impairments	$	2,908		$	543		$	20,156		$	3,203
Closed restaurant lease reserves		257			1,340			4,554			1,714
Other closing costs		983			263			1,561			805
Loss/(gain) on sale of surplus properties		(377	)		(50	)		(324	)		(648	)
Closures and impairments, net	$	3,771		$	2,096		$	25,947		$	5,074
Closures and impairments from discontinued operations	$	(77	)	$	3,958		$	(12	)	$	20,355

Future Lease Obligations Associated with Closed Properties [Table Text Block]

	Lease Obligations
	Continuing Operations			Discontinued Concepts			Total
Balance at June 4, 2013	$	6,417		$	2,310		$	8,727
Closing expense including rent and other lease charges		4,554			(6	)		4,548
Payments		(3,628	)		(1,080	)		(4,708	)
Other adjustments		591			2			593
Balance at March 4, 2014	$	7,934		$	1,226		$	9,160

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Note J - Employee Post-Employment Benefits (Tables)

9 Months Ended

Mar. 04, 2014

Compensation and Retirement Disclosure [Abstract]

Schedule of Net Benefit Costs [Table Text Block]

	Pension Benefits
	Thirteen weeks ended						Thirty-nine weeks ended
	March 4, 2014			March 5, 2013			March 4, 2014			March 5, 2013
Service cost	$	89		$	115		$	267		$	345
Interest cost		435			525			1,303			1,575
Expected return on plan assets		(111	)		(102	)		(333	)		(306	)
Amortization of prior service cost (a)	–				26		–				78
Recognized actuarial loss		427			565			1,283			1,695
Net periodic benefit cost	$	840		$	1,129		$	2,520		$	3,387

	Postretirement Medical and Life Benefits
	Thirteen weeks ended						Thirty-nine weeks ended
	March 4, 2014			March 5, 2013			March 4, 2014			March 5, 2013
Service cost	$	4		$	3		$	10		$	9
Interest cost		16			15			50			45
Amortization of prior service cost (a)		(12	)		(14	)		(34	)		(41	)
Recognized actuarial loss		61			53			183			159
Net periodic benefit cost	$	69		$	57		$	209		$	172

Schedule of Amounts Recognized in Other Comprehensive Income (Loss) [Table Text Block]

	Thirteen weeks ended						Thirty-nine weeks ended
	March 4, 2014			March 5, 2013			March 4, 2014			March 5, 2013
Recognized actuarial loss	$	489		$	618		$	1,466		$	1,854
Amortization of prior service cost		(12	)		13			(34	)		38
		477			631			1,432			1,892
Income taxes	–				(251	)	–				(751	)
Pension liability reclassification, net of tax	$	477		$	380		$	1,432		$	1,141

Schedule of Unpaid Employee Separation Obligations Included in Accrued Payroll and Related Costs [Table Text Block]

Balance at June 4, 2013	$	310
Employee severance and unused vacation accruals		3,541
Cash payments		(2,976	)
Balance at March 4, 2014	$	875

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Note C - Franchise Programs

9 Months Ended

Mar. 04, 2014

Franchise Programs [Abstract]

Franchise Programs [Text Block]

NOTE C – FRANCHISE PROGRAMS

As of March 4, 2014, our domestic and international franchisees collectively operated 76 Ruby Tuesday restaurants and eight Lime Fresh restaurants. We do not own any equity interest in our franchisees.

Under the terms of the franchise operating agreements, we charge a royalty fee (generally 4.0% of monthly sales for Ruby Tuesday concept franchisees and 5.25% of monthly sales for Lime Fresh concept franchisees) and require all of our Ruby Tuesday domestic franchisees to contribute a percentage, 1.5% as of March 4, 2014, of monthly gross sales to a national advertising fund formed to cover their pro rata portion of the production and airing costs associated with our national advertising campaign. Under the terms of those agreements, we can charge up to 3.0% of monthly gross sales for this national advertising fund.

Advertising amounts received from domestic franchisees are considered by RTI to be reimbursements, recorded on an accrual basis as earned, and have been netted against selling, general and administrative expenses in the Condensed Consolidated Statements of Operations and Comprehensive (Loss)/Income.

In addition to the advertising fee discussed above, our Ruby Tuesday concept franchise agreements allow us to charge up to a 2.0% support service fee and a 1.5% marketing and purchasing fee. For the 13 and 39 weeks ended March 4, 2014 and March 5, 2013, we recorded $0.3 million and $0.8 million, respectively in fiscal 2014, and $0.2 million and $0.6 million, respectively in fiscal 2013, in support service and marketing and purchasing fees, which were an offset to Selling, general and administrative, net in our Condensed Consolidated Statements of Operations and Comprehensive (Loss)/Income.

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Note L - Share-Based Employee Compensation (Tables)

9 Months Ended

Mar. 04, 2014

Disclosure of Compensation Related Costs, Share-based Payments [Abstract]

Schedule of Share-based Compensation, Stock Options, Activity [Table Text Block]

	Stock Options			Weighted Average Exercise Price
Service-based vesting:
Balance at June 4, 2013		1,911		$	8.27
Granted		601			9.34
Exercised		(244	)		6.45
Forfeited		(311	)		9.29
Balance at March 4, 2014		1,957		$	8.66
Exercisable		1,094		$	8.60
Market-based vesting:
Balance at June 4, 2013		250		$	7.81
Granted		570			9.34
Forfeited		(85	)		9.34
Balance at March 4, 2014		735		$	8.82
Exercisable	–			–

Schedule of Share-based Compensation, Restricted Stock and Restricted Stock Units Activity [Table Text Block]

	Restricted Stock			Weighted-Average Grant-Date Fair Value
Performance-based vesting:
Non-vested at June 4, 2013		356		$	7.06
Granted		–			–
Vested		(18	)		7.87
Forfeited		(270	)		6.81
Non-vested at March 4, 2014		68		$	7.81

	Restricted Stock			Weighted-Average Grant-Date Fair Value
Service-based vesting:
Non-vested at June 4, 2013		1,136		$	7.92
Granted		423			8.83
Vested		(398	)		8.12
Forfeited		(140	)		8.76
Non-vested at March 4, 2014		1,021		$	8.11

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Note C - Franchise Programs (Details) (USD $) In Millions, unless otherwise specified	3 Months Ended		9 Months Ended				9 Months Ended
	Mar. 04, 2014	Mar. 05, 2013	Mar. 04, 2014	Mar. 05, 2013	Mar. 04, 2014 Ruby Tuesday [Member]	Mar. 04, 2013 Ruby Tuesday [Member]	Mar. 04, 2014 Lime Fresh [Member]	Mar. 04, 2013 Lime Fresh [Member]
Note C - Franchise Programs (Details) [Line Items]
Number of Franchise Restaurants						76		8
Royalty fee percentage					4.00%		5.25%
Operating agreements, national advertising fund gross sales contribution					1.50%
Operating agreements, national advertising fund gross sales contribution, maximum					3.00%
Operating agreements, support service fee, gross sales contribution, maximum					2.00%
Operating agreements, marketing and purchase fee,gross sales contribution, maximum					1.50%
Support service and marketing and purchasing fees (in Dollars)	$ 0.3	$ 0.2	$ 0.8	$ 0.6

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Note J - Employee Post-Employment Benefits (Details) (USD $)	0 Months Ended	1 Months Ended	3 Months Ended	9 Months Ended			9 Months Ended	3 Months Ended
	Dec. 11, 2013	Nov. 20, 2013	Mar. 04, 2014	Mar. 04, 2014	Jun. 04, 2013	Mar. 04, 2014 Accounts Payable and Accrued Liabilities [Member]	Mar. 04, 2014 Retirement Plan [Member]	Mar. 04, 2014 Severance Plan [Member] Chief Operating Officer [Member]	Sep. 03, 2013 Severance Plan [Member] Chief Operating Officer [Member]	Mar. 04, 2014 Chief People Officer [Member]	Dec. 03, 2013 Chief People Officer [Member]
Note J - Employee Post-Employment Benefits (Details) [Line Items]
Defined Benefit Pension Plans			3	3
Defined Benefit Plans, Estimated Future Employer Contributions in Current Fiscal Year							$ 200,000
Defined contribution plans			2	2
Severance Costs			300,000	3,541,000					900,000		400,000
Payments for Postemployment Benefits								400,000	500,000
				(2,976,000)						300,000
Restructuring and Related Cost, Number of Positions Eliminated	17	50
Employee-related Liabilities			$ 21,334,000	$ 21,334,000	$ 25,425,000	$ 900,000

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Note P - Supplemental Condensed Consolidating Financial Statements (Details) - Condensed Consolidating Statements of Cash Flows (USD $) In Thousands, unless otherwise specified	9 Months Ended
	Mar. 04, 2014	Mar. 05, 2013
Condensed Cash Flow Statements, Captions [Line Items]
Net cash provided by operating activities	$ 29,154	$ 15,454
Investing activities:
Purchases of property and equipment	(22,557)	(27,733)
Proceeds from sale-leaseback transactions	5,637	38,872
Proceeds from disposal of assets	10,949	5,451
Other, net	842	416
Net cash used by investing activities	(5,129)	17,006
Financing activities:
Principal payments on long-term debt	(31,981)	(20,300)
Stock repurchases	(579)	(30,149)
Payments for debt issuance costs	(1,758)
Proceeds from exercise of stock options	1,576	1,478
Excess tax benefits from share-based compensation	284	87
Net cash provided/(used) by financing activities	(32,458)	(48,884)
Increase/(decrease) in cash and cash equivalents	(8,433)	(16,424)
Cash and cash equivalents:
Beginning of year	52,907	48,184
End of quarter	44,474	31,760
Consolidation, Eliminations [Member]
Condensed Cash Flow Statements, Captions [Line Items]
Net cash provided by operating activities	(17,664)	(26,040)
Financing activities:
Intercompany transactions	17,664	26,040
Net cash provided/(used) by financing activities	17,664	26,040
Cash and cash equivalents:
End of quarter	0
Parent Company [Member]
Condensed Cash Flow Statements, Captions [Line Items]
Net cash provided by operating activities	(4,304)	(5,902)
Investing activities:
Purchases of property and equipment	(16,855)	(23,480)
Proceeds from sale-leaseback transactions	5,637	38,872
Proceeds from disposal of assets	9,926	2,875
Other, net	842	416
Net cash used by investing activities	(450)	18,683
Financing activities:
Principal payments on long-term debt	(12,958)	(10,971)
Stock repurchases	(579)	(30,149)
Payments for debt issuance costs	(1,758)
Proceeds from exercise of stock options	1,576	1,478
Excess tax benefits from share-based compensation	284	87
Intercompany transactions	9,688	10,305
Net cash provided/(used) by financing activities	(3,747)	(29,250)
Increase/(decrease) in cash and cash equivalents	(8,501)	(16,469)
Cash and cash equivalents:
Beginning of year	52,635	47,986
End of quarter	44,134	31,517
Guarantor Subsidiaries [Member]
Condensed Cash Flow Statements, Captions [Line Items]
Net cash provided by operating activities	51,122	47,396
Investing activities:
Purchases of property and equipment	(5,702)	(4,253)
Proceeds from disposal of assets	1,023	2,576
Net cash used by investing activities	(4,679)	(1,677)
Financing activities:
Principal payments on long-term debt	(19,023)	(9,329)
Intercompany transactions	(27,352)	(36,345)
Net cash provided/(used) by financing activities	(46,375)	(45,674)
Increase/(decrease) in cash and cash equivalents	68	45
Cash and cash equivalents:
Beginning of year	272	198
End of quarter	$ 340	$ 243

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Condensed Consolidated Balance Sheets (Unaudited) (USD $) In Thousands, unless otherwise specified	Mar. 04, 2014	Jun. 04, 2013
Current assets:
Cash and cash equivalents	$ 44,474	$ 52,907
Accounts receivable	5,044	4,834
Inventories:
Merchandise	13,895	21,779
China, silver and supplies	8,845	9,093
Income tax receivable	4,241	1,900
Deferred income taxes	4,297	7,296
Prepaid rent and other expenses	13,501	14,180
Assets held for sale	6,635	9,175
Total current assets	100,932	121,164
Property and equipment, net	808,328	859,830
Other assets	60,128	62,189
Total assets	969,388	1,043,183
Current liabilities:
Accounts payable	29,426	14,964
Accrued liabilities:
Taxes, other than income and payroll	10,192	11,311
Payroll and related costs	21,334	25,425
Insurance	7,125	9,095
Deferred revenue – gift cards	18,687	13,454
Rent and other	30,573	22,896
Current portion of long-term debt, including capital leases	4,769	8,487
Total current liabilities	122,106	105,632
Long-term debt and capital leases, less current maturities	262,104	290,515
Deferred income taxes	2,443	5,753
Deferred escalating minimum rent	48,738	46,892
Other deferred liabilities	72,785	77,556
Total liabilities	508,176	526,348
Commitments and contingencies (Note N)
Shareholders’ equity:
Common stock, $0.01 par value; (authorized: 100,000 shares; issued: 61,442 shares at 3/04/14; 61,248 shares at 6/04/13)	614	612
Capital in excess of par value	74,470	67,596
Retained earnings	395,640	459,572
Deferred compensation liability payable in Company stock	500	1,094
Company stock held by Deferred Compensation Plan	(500)	(1,094)
Accumulated other comprehensive loss	(9,512)	(10,945)
Total shareholders’ equity	461,212	516,835
Total liabilities & shareholders’ equity	$ 969,388	$ 1,043,183

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Note F - Inventories (Details) (USD $) In Thousands, unless otherwise specified	Mar. 04, 2014	Jun. 04, 2013
Inventory Disclosure [Abstract]
Retail Related Inventory, Merchandise	$ 13,895	$ 21,779

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Note A - Basis of Presentation

9 Months Ended

Mar. 04, 2014

Disclosure Text Block [Abstract]

Organization, Consolidation and Presentation of Financial Statements Disclosure [Text Block]

NOTE A – BASIS OF PRESENTATION

Ruby Tuesday, Inc., including its wholly-owned subsidiaries (“RTI,” the “Company,” “we,” and/or “our”), owns and operates Ruby Tuesday® casual dining and Lime Fresh Mexican Grill® (“Lime Fresh”) fast casual restaurants. We also franchise the Ruby Tuesday and Lime Fresh concepts in selected domestic and international markets. The accompanying unaudited condensed consolidated financial statements have been prepared pursuant to the rules and regulations of the Securities and Exchange Commission (“SEC”). Accordingly, they do not include all of the information and footnotes required by U.S. generally accepted accounting principles (“GAAP”) for complete financial statements. In the opinion of management, all adjustments (consisting only of normal recurring entries) considered necessary for a fair presentation have been included. The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes. Actual results could differ from those estimates. Operating results for the 13- and 39-week periods ended March 4, 2014 are not necessarily indicative of results that may be expected for the 52-week year ending June 3, 2014.

The Condensed Consolidated Balance Sheet at June 4, 2013 has been derived from the audited consolidated financial statements at that date but does not include all of the information and footnotes required by GAAP for complete financial statements. We reclassified $0.4 million from Interest expense, net to Gain on extinguishment of debt in our Condensed Consolidated Statements of Operations and Comprehensive Loss for the 39 weeks ended March 5, 2013. We also made certain reclassifications to prior year amounts in our Condensed Consolidated Statements of Cash Flows to conform to current period presentation (all reclassifications were within Operating activities).

For further information, refer to the consolidated financial statements and footnotes thereto included in RTI’s Annual Report on Form 10-K for the fiscal year ended June 4, 2013.

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Note L - Share-Based Employee Compensation (Details) - Summary of Stock Option Activity (USD $)	9 Months Ended
	Mar. 04, 2014
Stock Options, Service-based [Member]
Note L - Share-Based Employee Compensation (Details) - Summary of Stock Option Activity [Line Items]
Balance, beginning of year	1,911,000
Balance, beginning of year	$ 8.27
Granted	601,000
Granted	$ 9.34
Exercised	(244,000)
Exercised	$ 6.45
Forfeited	(311,000)
Forfeited	$ 9.29
Balance, end of quarter	1,957,000
Balance, end of quarter	$ 8.66
Exercisable	1,094,000
Exercisable	$ 8.60
Stock Options, Performanced-based [Member]
Note L - Share-Based Employee Compensation (Details) - Summary of Stock Option Activity [Line Items]
Balance, beginning of year	250,000
Balance, beginning of year	$ 7.81
Granted	570,000
Granted	$ 9.34
Forfeited	(85,000)
Forfeited	$ 9.34
Balance, end of quarter	735,000
Balance, end of quarter	$ 8.82
Exercisable
Exercisable

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Note P - Supplemental Condensed Consolidating Financial Statements (Tables)

9 Months Ended

Mar. 04, 2014

Disclosure Text Block Supplement [Abstract]

Condensed Balance Sheet [Table Text Block]

	Parent			Guarantors		Eliminations			Consolidated
Assets
Current assets:
Cash and cash equivalents	$	44,134		$	340	–			$	44,474
Accounts receivable		2,368			2,676	–				5,044
Inventories		16,092			6,648	–				22,740
Income tax receivable		133,739		–			(129,498	)		4,241
Deferred income taxes		455			3,842	–				4,297
Other current assets		16,856			3,280	–				20,136
Total current assets		213,644			16,786		(129,498	)		100,932
Property and equipment, net		598,601			209,727	–				808,328
Investment in subsidiaries		153,842		–			(153,842	)	–
Due from/(to) subsidiaries		89,095			240,271		(329,366	)	–
Other assets		47,140			12,988	–				60,128
Total assets	$	1,102,322		$	479,772	$	(612,706	)	$	969,388
Liabilities & Shareholders’ Equity
Current liabilities:
Accounts payable	$	23,922		$	5,504	–			$	29,426
Accrued and other current liabilities		50,843			37,068	–				87,911
Current maturities of long-term debt, including capital leases		(348	)		5,117	–				4,769
Income tax payable	–				129,498		(129,498	)	–
Total current liabilities		74,417			177,187		(129,498	)		122,106
Long-term debt and capital leases,
less current maturities		219,981			42,123	–				262,104
Deferred income taxes		(1,399	)		3,842	–				2,443
Due to/(from) subsidiaries		240,271			89,095		(329,366	)	–
Other deferred liabilities		107,840			13,683	–				121,523
Total liabilities		641,110			325,930		(458,864	)		508,176
Shareholders’ equity:
Common stock		614		–		–				614
Capital in excess of par value		74,470		–		–				74,470
Retained earnings		395,640			153,842		(153,842	)		395,640
Accumulated other comprehensive loss		(9,512	)	–		–				(9,512	)
Total shareholders’ equity		461,212			153,842		(153,842	)		461,212
Total liabilities & shareholders’ equity	$	1,102,322		$	479,772	$	(612,706	)	$	969,388

	Parent			Guarantors		Eliminations			Consolidated
Assets
Current assets:
Cash and cash equivalents	$	52,635		$	272	–			$	52,907
Accounts receivable		1,854			2,980	–				4,834
Inventories		21,961			8,911	–				30,872
Income tax receivable		118,329		–			(116,429	)		1,900
Deferred income taxes		5,372			1,924	–				7,296
Other current assets		19,519			3,836	–				23,355
Total current assets		219,670			17,923		(116,429	)		121,164
Property and equipment, net		635,478			224,352	–				859,830
Investment in subsidiaries		167,887		–			(167,887	)	–
Due from/(to) subsidiaries		76,485			230,583		(307,068	)	–
Other assets		46,812			15,377	–				62,189
Total assets	$	1,146,332		$	488,235	$	(591,384	)	$	1,043,183
Liabilities & Shareholders’ Equity
Current liabilities:
Accounts payable	$	11,725		$	3,239	–			$	14,964
Accrued and other current liabilities		47,775			34,406	–				82,181
Current maturities of long-term debt, including capital leases		(347	)		8,834	–				8,487
Income tax payable	–				116,429		(116,429	)	–
Total current liabilities		59,153			162,908		(116,429	)		105,632
Long-term debt and capital leases, less current maturities		232,462			58,053	–				290,515
Deferred income taxes		(1,070	)		6,823	–				5,753
Due to/(from) subsidiaries		230,583			76,485		(307,068	)	–
Other deferred liabilities		108,369			16,079	–				124,448
Total liabilities		629,497			320,348		(423,497	)		526,348
Shareholders’ equity:
Common stock		612		–		–				612
Capital in excess of par value		67,596		–		–				67,596
Retained earnings		459,572			167,887		(167,887	)		459,572
Accumulated other comprehensive loss		(10,945	)	–		–				(10,945	)
Total shareholders’ equity		516,835			167,887		(167,887	)		516,835
Total liabilities & shareholders’ equity	$	1,146,332		$	488,235	$	(591,384	)	$	1,043,183

Condensed Income Statement [Table Text Block]

	Parent			Guarantors			Eliminations			Consolidated
Revenue:
Restaurant sales and operating revenue	$	212,249		$	81,715		–			$	293,964
Franchise revenue		63			1,525		–				1,588
		212,312			83,240		–				295,552
Operating costs and expenses:
Cost of merchandise		58,550			22,430		–				80,980
Payroll and related costs		71,742			29,609		–				101,351
Other restaurant operating costs		46,765			17,396		–				64,161
Depreciation		9,787			3,540		–				13,327
Selling, general, and administrative		16,532			16,808		–				33,340
Intercompany selling, general, and administrative allocations		14,908			(14,908	)	–			–
Closures and impairments		2,407			1,364		–				3,771
Trademark impairment	–				855		–				855
Equity in earnings of subsidiaries		(8,886	)	–				8,886		–
Interest expense, net		5,089			878		–				5,967
Intercompany interest expense/(income)		3,274			(3,274	)	–			–
		220,168			74,698			8,886			303,752
(Loss)/income from continuing operations before income taxes		(7,856	)		8,542			(8,886	)		(8,200	)
Benefit for income taxes from continuing operations		(463	)		(344	)	–				(807	)
(Loss)/income from continuing operations		(7,393	)		8,886			(8,886	)		(7,393	)
Income from discontinued operations, net of tax		86		–			–				86
Net (loss)/income	$	(7,307	)	$	8,886		$	(8,886	)	$	(7,307	)
Other comprehensive income:
Pension liability reclassification, net of tax		477		–			–				477
Total comprehensive (loss)/income	$	(6,830	)	$	8,886		$	(8,886	)	$	(6,830	)

	Parent			Guarantors			Eliminations			Consolidated
Revenue:
Restaurant sales and operating revenue	$	621,181		$	235,594		–			$	856,775
Franchise revenue		182			4,478		–				4,660
		621,363			240,072		–				861,435
Operating costs and expenses:
Cost of merchandise		173,397			65,190		–				238,587
Payroll and related costs		214,633			86,968		–				301,601
Other restaurant operating costs		141,660			55,324		–				196,984
Depreciation		30,359			11,092		–				41,451
Selling, general, and administrative		68,250			39,136		–				107,386
Intercompany selling, general, and administrative allocations		43,679			(43,679	)	–			–
Closures and impairments		15,630			10,317		–				25,947
Trademark impairment	–				855		–				855
Equity in earnings of subsidiaries		(13,307	)	–				13,307		–
Interest expense, net		15,320			4,020		–				19,340
Intercompany interest expense/(income)		9,688			(9,688	)	–			–
Loss on extinguishment of debt		1,183		–			–				1,183
		700,492			219,535			13,307			933,334
(Loss)/income from continuing operations before income taxes		(79,129	)		20,537			(13,307	)		(71,899	)
(Benefit)/provision for income taxes from continuing operations		(15,100	)		7,230		–				(7,870	)
(Loss)/income from continuing operations		(64,029	)		13,307			(13,307	)		(64,029	)
Income from discontinued operations, net of tax		97		–			–				97
Net (loss)/income	$	(63,932	)	$	13,307		$	(13,307	)	$	(63,932	)
Other comprehensive income:
Pension liability reclassification, net of tax		1,432		–			–				1,432
Total comprehensive (loss)/income	$	(62,500	)	$	13,307		$	(13,307	)	$	(62,500	)

	Parent			Guarantors			Eliminations			Consolidated
Revenue:
Restaurant sales and operating revenue	$	221,316		$	84,519		–			$	305,835
Franchise revenue		25			1,523		–				1,548
		221,341			86,042		–				307,383
Operating costs and expenses:
Cost of merchandise		60,626			23,169		–				83,795
Payroll and related costs		74,802			30,562		–				105,364
Other restaurant operating costs		44,242			17,704		–				61,946
Depreciation		10,751			3,863		–				14,614
Selling, general, and administrative		19,747			10,529		–				30,276
Intercompany selling, general, and administrative allocations		16,761			(16,761	)	–			–
Closures and impairments		1,235			861		–				2,096
Equity in earnings of subsidiaries		(12,369	)	–				12,369		–
Interest expense, net		5,195			1,396		–				6,591
Intercompany interest expense/(income)		3,482			(3,482	)	–			–
		224,472			67,841			12,369			304,682
(Loss)/income from continuing operations before income taxes		(3,131	)		18,201			(12,369	)		2,701
(Benefit)/provision for income taxes from continuing operations		(7,847	)		5,832		–				(2,015	)
Income from continuing operations		4,716			12,369			(12,369	)		4,716
Loss from discontinued operations, net of tax		(2,520	)		(158	)		158			(2,520	)
Net income	$	2,196		$	12,211		$	(12,211	)	$	2,196
Other comprehensive income:
Pension liability reclassification, net of tax		380		–			–				380
Total comprehensive income	$	2,576		$	12,211		$	(12,211	)	$	2,576

	Parent			Guarantors			Eliminations			Consolidated
Revenue:
Restaurant sales and operating revenue	$	675,501		$	255,198		–			$	930,699
Franchise revenue		159			4,525		–				4,684
		675,660			259,723		–				935,383
Operating costs and expenses:
Cost of merchandise		184,827			69,678		–				254,505
Payroll and related costs		222,481			90,806		–				313,287
Other restaurant operating costs		137,844			55,604		–				193,448
Depreciation		32,623			11,680		–				44,303
Selling, general, and administrative		73,737			38,086		–				111,823
Intercompany selling, general, and administrative allocations		51,245			(51,245	)	–			–
Closures and impairments		4,210			864		–				5,074
Equity in earnings of subsidiaries		(33,835	)	–				33,835		–
Interest expense, net		15,836			4,310		–				20,146
Gain on extinguishment of debt		(155	)	–			–				(155	)
Intercompany interest expense/(income)		10,304			(10,304	)	–			–
		699,117			209,479			33,835			942,431
(Loss)/income from continuing operations before income taxes		(23,457	)		50,244			(33,835	)		(7,048	)
(Benefit)/provision for income taxes from continuing operations		(27,043	)		16,409		–				(10,634	)
Income from continuing operations		3,586			33,835			(33,835	)		3,586
Loss from discontinued operations, net of tax		(13,859	)		(810	)		810			(13,859	)
Net income/(loss)	$	(10,273	)	$	33,025		$	(33,025	)	$	(10,273	)
Other comprehensive income:
Pension liability reclassification, net of tax		1,141		–			–				1,141
Total comprehensive income	$	(9,132	)	$	33,025		$	(33,025	)	$	(9,132	)

Condensed Cash Flow Statement [Table Text Block]

	Parent			Guarantors			Eliminations			Consolidated
Net cash (used)/provided by operating activities	$	(4,304	)	$	51,122		$	(17,664	)	$	29,154
Investing activities:
Purchases of property and equipment		(16,855	)		(5,702	)	–				(22,557	)
Proceeds from sale-leaseback transactions, net		5,637		–			–				5,637
Proceeds from disposal of assets		9,926			1,023		–				10,949
Other, net		842		–			–				842
Net cash used by investing activities		(450	)		(4,679	)	–				(5,129	)
Financing activities:
Principal payments on long-term debt		(12,958	)		(19,023	)	–				(31,981	)
Stock repurchases		(579	)	–			–				(579	)
Payments for debt issuance costs		(1,758	)	–			–				(1,758	)
Proceeds from exercise of stock options		1,576		–			–				1,576
Excess tax benefits from share-based compensation		284		–			–				284
Intercompany transactions		9,688			(27,352	)		17,664		–
Net cash used by financing activities		(3,747	)		(46,375	)		17,664			(32,458	)
(Decrease)/increase in cash and cash equivalents		(8,501	)		68		–				(8,433	)
Cash and cash equivalents:
Beginning of year		52,635			272		–				52,907
End of quarter	$	44,134		$	340		–			$	44,474

	Parent			Guarantors			Eliminations			Consolidated
Net cash (used)/provided by operating activities		(5,902	)	$	47,396		$	(26,040	)	$	15,454
Investing activities:
Purchases of property and equipment		(23,480	)		(4,253	)	–				(27,733	)
Proceeds from sale-leaseback transactions, net		38,872		–			–				38,872
Proceeds from disposal of assets		2,875			2,576		–				5,451
Other, net		416		–			–				416
Net cash provided/(used) by investing activities		18,683			(1,677	)	–				17,006
Financing activities:
Principal payments on long-term debt		(10,971	)		(9,329	)	–				(20,300	)
Stock repurchases		(30,149	)	–			–				(30,149	)
Proceeds from exercise of stock options		1,478		–			–				1,478
Excess tax benefits from share-based Compensation		87		–			–				87
Intercompany transactions		10,305			(36,345	)		26,040		–
Net cash used by financing activities		(29,250	)		(45,674	)		26,040			(48,884	)
Decrease in cash and cash equivalents		(16,469	)		45		–				(16,424	)
Cash and cash equivalents:
Beginning of year		47,986			198		–				48,184
End of quarter		31,517		$	243		–			$	31,760

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Note O - Fair Value Measurements (Details) (Construction in Progress [Member], USD $) In Millions, unless otherwise specified	Mar. 04, 2014	Jun. 04, 2013
Construction in Progress [Member]
Note O - Fair Value Measurements (Details) [Line Items]
Assets Held for Sale, Property Plant and Equipment, Noncurrent	$ 16.7	$ 14.8

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Note Q - Recently Issued Accounting Pronouncements

9 Months Ended

Mar. 04, 2014

Disclosure Text Block [Abstract]

Description of New Accounting Pronouncements Not yet Adopted [Text Block]

NOTE Q – RECENTLY ISSUED ACCOUNTING PRONOUNCEMENTS

Accounting Pronouncements Not Yet Adopted

In July 2013, the Financial Accounting Standards Board issued Accounting Standards Update (“ASU”) No. 2013-11, “Income Taxes (Topic 740): Presentation of an Unrecognized Tax Benefit When a Net Operating Loss Carryforward, a Similar Tax Loss, or a Tax Credit Carryforward Exists” (“ASU 2013-11”). The guidance requires an entity to present its unrecognized tax benefits net of its deferred tax assets when settlement in this manner is available under the tax law, which would be based on facts and circumstances as of the balance sheet reporting date and would not consider future events. Gross presentation in the notes to the financial statements will still be required. ASU 2013-11 will apply on a prospective basis to all unrecognized tax benefits that exist at the effective date, with the option to apply it retrospectively. The guidance is effective for fiscal years, and interim periods within those years, beginning after December 15, 2013 (our fiscal 2015 first quarter). While the adoption of ASU 2013-11 will not have an impact on our results of operations or cash flows, we are currently evaluating the impact of presenting unrecognized tax benefits net of our deferred tax assets where applicable on our Condensed Consolidated Balance Sheets.

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Note A - Basis of Presentation (Details) (Other Reclassifications and Corrections [Member], USD $) In Millions, unless otherwise specified	9 Months Ended
	Mar. 05, 2013
Other Reclassifications and Corrections [Member]
Note A - Basis of Presentation (Details) [Line Items]
Prior Period Reclassification Adjustment	$ 0.4

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Accounting Policies, by Policy (Policies)

9 Months Ended

Mar. 04, 2014

Accounting Policies [Abstract]

New Accounting Pronouncements, Policy [Policy Text Block]

Accounting Pronouncements Not Yet Adopted

In July 2013, the Financial Accounting Standards Board issued Accounting Standards Update (“ASU”) No. 2013-11, “Income Taxes (Topic 740): Presentation of an Unrecognized Tax Benefit When a Net Operating Loss Carryforward, a Similar Tax Loss, or a Tax Credit Carryforward Exists” (“ASU 2013-11”). The guidance requires an entity to present its unrecognized tax benefits net of its deferred tax assets when settlement in this manner is available under the tax law, which would be based on facts and circumstances as of the balance sheet reporting date and would not consider future events. Gross presentation in the notes to the financial statements will still be required. ASU 2013-11 will apply on a prospective basis to all unrecognized tax benefits that exist at the effective date, with the option to apply it retrospectively. The guidance is effective for fiscal years, and interim periods within those years, beginning after December 15, 2013 (our fiscal 2015 first quarter). While the adoption of ASU 2013-11 will not have an impact on our results of operations or cash flows, we are currently evaluating the impact of presenting unrecognized tax benefits net of our deferred tax assets where applicable on our Condensed Consolidated Balance Sheets.

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Note O - Fair Value Measurements (Details) - Losses Recognized from Fair Value Measurements on Non-recurring Basis (USD $) In Thousands, unless otherwise specified	3 Months Ended		9 Months Ended
	Mar. 04, 2014	Mar. 05, 2013	Mar. 04, 2014	Mar. 05, 2013
Note O - Fair Value Measurements (Details) - Losses Recognized from Fair Value Measurements on Non-recurring Basis [Line Items]
Asset impairment charges			$ 20,242	$ 21,161
Continuing Operations [Member]
Note O - Fair Value Measurements (Details) - Losses Recognized from Fair Value Measurements on Non-recurring Basis [Line Items]
Long-lived assets held for sale	142	543	726	1,054
Long-lived assets held for use	3,621		20,285	2,149
Asset impairment charges	3,763	543	21,011	3,203
Discontinued Operations [Member]
Note O - Fair Value Measurements (Details) - Losses Recognized from Fair Value Measurements on Non-recurring Basis [Line Items]
Asset impairment charges	$ 25	$ 1,669	$ 178	$ 17,971

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Note B - (Loss)/Earnings Per Share and Stock Repurchases

9 Months Ended

Mar. 04, 2014

Earnings Per Share [Abstract]

Earnings Per Share [Text Block]

NOTE B – (LOSS)/EARNINGS PER SHARE AND STOCK REPURCHASES

Basic (loss)/earnings per share is computed by dividing net (loss)/income by the weighted average number of common shares outstanding during each period presented. Diluted (loss)/earnings per share gives effect to stock options and restricted stock outstanding during the applicable periods, if dilutive. The following table reflects the calculation of weighted-average common and dilutive potential common shares outstanding as presented in the accompanying Condensed Consolidated Statements of Operations and Comprehensive (Loss)/Income (in thousands, except per-share data):

	Thirteen weeks ended						Thirty-nine weeks ended
	March 4, 2014			March 5, 2013			March 4, 2014			March 5, 2013
(Loss)/income from continuing operations	$	(7,393	)	$	4,716		$	(64,029	)	$	3,586
Income/(loss) from discontinued operations, net of tax		86			(2,520	)		97			(13,859	)
Net (loss)/income	$	(7,307	)	$	2,196		$	(63,932	)	$	(10,273	)
Weighted-average common shares outstanding		60,351			59,778			60,191			61,532
Dilutive effect of stock options and restricted stock	–				534		–				454
Weighted average common and dilutive potential common shares outstanding		60,351			60,312			60,191			61,986
(Loss)/income per share – Basic
(Loss)/income from continuing operations	$	(0.12	)	$	0.08		$	(1.06	)	$	0.06
Income/(loss) from discontinued operations		0.00			(0.04	)		0.00			(0.23	)
Net (loss)/income per share	$	(0.12	)	$	0.04		$	(1.06	)	$	(0.17	)
(Loss)/income per share – Diluted
(Loss)/income from continuing operations	$	(0.12	)	$	0.08		$	(1.06	)	$	0.06
Income/(loss) from discontinued operations		0.00			(0.04	)		0.00			(0.22	)
Net (loss)/income per share	$	(0.12	)	$	0.04		$	(1.06	)	$	(0.16	)

Stock options with an exercise price greater than the average market price of our common stock and certain options with unrecognized compensation expense do not impact the computation of diluted (loss)/income per share because the effect would be anti-dilutive. The following table summarizes stock options and restricted shares that did not impact the computation of diluted (loss)/income per share because their inclusion would have had an anti-dilutive effect (in thousands):

	Thirteen weeks ended					Thirty-nine weeks ended
	March 4, 2014			March 5, 2013		March 4, 2014			March 5, 2013
Stock options		2,692	*		2,410		2,882	*		2,116
Restricted shares		1,090	*		1,119		1,136	*		1,203
Total		3,782			3,529		4,018			3,319

* Due to a net loss from continuing operations for the 13 and 39 weeks ended March 4, 2014, all then outstanding share-based awards were excluded from the computation of diluted loss per share.

During the first 39 weeks of fiscal 2014, we repurchased 0.1 million shares of our common stock at a cost of $0.6 million. As of March 4, 2014, the total number of remaining shares authorized by our Board of Directors to be repurchased was 11.8 million. All shares repurchased during the 39 week period were cancelled as of March 4, 2014.

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Condensed Consolidated Balance Sheets (Unaudited) (Parentheticals) (USD $) In Thousands, except Per Share data, unless otherwise specified	Mar. 04, 2014	Jun. 04, 2013
Common stock, par value (in Dollars per share)	$ 0.01	$ 0.01
Common stock, authorized	100,000	100,000
Common stock, issued	61,442	61,248

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Note L - Share-Based Employee Compensation

9 Months Ended

Mar. 04, 2014

Disclosure of Compensation Related Costs, Share-based Payments [Abstract]

Disclosure of Compensation Related Costs, Share-based Payments [Text Block]

NOTE L – SHARE-BASED EMPLOYEE COMPENSATION

We compensate our employees and directors using share-based compensation through the following plans:

The Ruby Tuesday, Inc. Stock Incentive Plan and the Ruby Tuesday, Inc. 1996 Stock Incentive Plan

A committee, appointed by the Board of Directors, administers the Ruby Tuesday, Inc. Stock Incentive Plan (“SIP”) and the Ruby Tuesday, Inc. 1996 Stock Incentive Plan (“1996 SIP”), and has full authority in its discretion to determine the key employees, officers, and non-employee directors to whom share-based incentives are granted and the terms and provisions of share-based incentives. Option grants under the SIP and 1996 SIP can have varying vesting provisions and exercise periods as determined by such committee. A majority of currently outstanding options granted under the SIP and 1996 SIP vest within three years following the date of grant and expire seven years after the date of grant. The SIP and 1996 SIP permit the committee to make awards of shares of common stock, awards of stock options or other derivative securities related to the value of the common stock, and certain cash awards to eligible persons. These discretionary awards may be made on an individual basis or for the benefit of a group of eligible persons. All options awarded under the SIP and 1996 SIP have been awarded with an exercise price equal to the fair market value at the time of grant.

At March 4, 2014, we had reserved a total of 4,849,000 and 143,000 shares of common stock for the SIP and 1996 SIP, respectively. Of the reserved shares at March 4, 2014, 1,861,000 and 77,000 were subject to options outstanding for the SIP and 1996 SIP, respectively. Stock option exercises are settled with the issuance of new shares. Net shares of common stock available for issuance at March 4, 2014 under the SIP and 1996 SIP were 2,988,000 and 66,000, respectively. As discussed below, during the second quarter of fiscal 2014 our shareholders approved an amendment to the SIP allowing non-employee directors to participate in the SIP.

The Ruby Tuesday, Inc. Stock Incentive and Deferred Compensation Plan for Directors

Under the Ruby Tuesday, Inc. Stock Incentive and Deferred Compensation Plan for directors (the “Directors’ Plan”), non-employee directors are eligible for awards of share-based incentives. On October 9, 2013, our shareholders approved an amendment to the SIP allowing non-employee directors to participate in the SIP instead of requiring that such awards be made from the Directors’ Plan. The amendment did not increase the number of shares of common stock available for issuance under the SIP. At March 4, 2014, only an insignificant number of shares of common stock available for issuance under the Directors’ Plan remained. All future share-based compensation granted to non-employee directors will be awarded from shares of common stock available for issuance under the SIP. As further discussed in Note R to the Condensed Consolidated Financial Statements, the Directors’ Plan was amended and restated on April 9, 2014, primarily for the purpose of terminating those portions of the Directors’ Plan providing for the award of share-based compensation to non-employee directors.

Stock Options

The following table summarizes our stock option activity for the 39 weeks ended March 4, 2014 under these stock option plans (in thousands, except per-share data):

	Stock Options			Weighted Average Exercise Price
Service-based vesting:
Balance at June 4, 2013		1,911		$	8.27
Granted		601			9.34
Exercised		(244	)		6.45
Forfeited		(311	)		9.29
Balance at March 4, 2014		1,957		$	8.66
Exercisable		1,094		$	8.60
Market-based vesting:
Balance at June 4, 2013		250		$	7.81
Granted		570			9.34
Forfeited		(85	)		9.34
Balance at March 4, 2014		735		$	8.82
Exercisable	–			–

At March 4, 2014, there was approximately $3.2 million of unrecognized pre-tax compensation expense related to non-vested stock options. This cost is expected to be recognized over a weighted-average period of 1.6 years.

During the first quarter of fiscal 2014, we granted 601,000 service-based stock options to certain employees under the terms of the SIP. The stock options awarded vest in equal annual installments over a three-year period following grant of the award, and have a maximum life of seven years.

Also during the first quarter of fiscal 2014, we granted 570,000 market-based stock options to certain employees under the terms of the SIP. The stock options vest if a share of our common stock appreciates to $14 per share or more for a period of 20 consecutive trading days on or before December 3, 2015. The stock options have a maximum life of seven years.

Restricted Stock

The following table summarizes our restricted stock activity for the 39 weeks ended March 4, 2014 (in thousands, except per-share data):

	Restricted Stock			Weighted-Average Grant-Date Fair Value
Performance-based vesting:
Non-vested at June 4, 2013		356		$	7.06
Granted		–			–
Vested		(18	)		7.87
Forfeited		(270	)		6.81
Non-vested at March 4, 2014		68		$	7.81

	Restricted Stock			Weighted-Average Grant-Date Fair Value
Service-based vesting:
Non-vested at June 4, 2013		1,136		$	7.92
Granted		423			8.83
Vested		(398	)		8.12
Forfeited		(140	)		8.76
Non-vested at March 4, 2014		1,021		$	8.11

The fair values of the restricted share awards reflected above were based on the fair market value of our common stock on the grant date. At March 4, 2014, unrecognized compensation expense related to restricted stock grants expected to vest totaled approximately $4.9 million and will be recognized over a weighted average vesting period of approximately 1.4 years.

During the second quarter of fiscal 2014, RTI granted approximately 60,000 restricted shares to non-employee directors under the terms of the Stock Incentive Plan.  These shares cliff vest over a one year period following grant of the award.

During the first quarter of fiscal 2014, we granted 344,000 shares of service-based restricted stock to certain employees under the terms of the SIP and 1996 SIP, 186,000 of which will cliff vest 2.5 years following the grant date and 158,000 of which will vest in three equal installments over a three-year period following the date of grant.

Also during the first quarter of fiscal 2014, the Executive Compensation Committee of the Board of Directors determined that the performance condition was not achieved for 269,000 shares of performance-based restricted stock granted in fiscal 2013. As a result, 235,000 shares of restricted stock were cancelled and returned to the pool of shares available for grant under the SIP and 1996 SIP and 34,000 shares of restricted stock awarded to our President and Chief Executive Officer were cancelled and retired.

As discussed further in Note J to the Condensed Consolidated Financial Statements, our Executive Vice President, Chief Operations Officer, Senior Vice President, Chief People Officer, and other management personnel separated employment with the Company during the first three quarters of fiscal 2014. Several of these individuals held share-based compensation awards at the times of their separations, and these awards were either vested or forfeited in accordance with the terms of the original awards.

Included within share-based compensation expense for the 13- and 39-week periods ended March 4, 2014 were charges that were insignificant and $0.3 million, respectively, representing the incremental costs resulting from accelerated vesting, net of forfeitures.

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Document And Entity Information	9 Months Ended
	Mar. 04, 2014	Apr. 08, 2014
Document and Entity Information [Abstract]
Entity Registrant Name	RUBY TUESDAY INC
Document Type	10-Q
Current Fiscal Year End Date	--06-03
Entity Common Stock, Shares Outstanding		61,442,221
Amendment Flag	false
Entity Central Index Key	0000068270
Entity Current Reporting Status	Yes
Entity Voluntary Filers	No
Entity Filer Category	Accelerated Filer
Entity Well-known Seasoned Issuer	No
Document Period End Date	Mar. 04, 2014
Document Fiscal Year Focus	2014
Document Fiscal Period Focus	Q3

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Note M - Segment Reporting

9 Months Ended

Mar. 04, 2014

Segment Reporting [Abstract]

Segment Reporting Disclosure [Text Block]

NOTE M – SEGMENT REPORTING

Our President and Chief Executive Officer, who is our chief operating decision maker, with the assistance of our senior management, reviews discrete financial information for both the Ruby Tuesday and Lime Fresh restaurant concepts to assess performance and allocate resources. We consider the Ruby Tuesday and Lime Fresh concepts to be our reportable segments as we do not believe they have similar economic and other characteristics to be aggregated into a single reportable segment. Financial results by reportable segment for the 13 and 39 weeks ended March 4, 2014 and March 5, 2013 are as follows (in thousands):

	Thirteen weeks ended					Thirty-nine weeks ended
	March 4, 2014		March 5, 2013			March 4, 2014			March 5, 2013
Revenues:
Ruby Tuesday concept	$	290,752	$	303,662		$	845,514		$	923,586
Lime Fresh concept		4,800		3,721			15,921			11,797
Total revenues	$	295,552	$	307,383		$	861,435		$	935,383
Segment profit/(loss):
Ruby Tuesday concept	$	24,139	$	31,305		$	34,860		$	77,878
Lime Fresh concept		1		(1,441	)		(4,236	)		(3,792	)
Total segment profit	$	24,140	$	29,864		$	30,624		$	74,086
Depreciation and amortization:
Ruby Tuesday concept	$	12,840	$	14,314		$	40,088		$	43,455
Lime Fresh concept		473		576			1,517			1,671
Support center and other		599		585			1,779			1,728
Total depreciation and amortization	$	13,912	$	15,475		$	43,384		$	46,854
Capital expenditures:
Ruby Tuesday concept						$	18,744		$	18,271
Lime Fresh concept							2,793			5,548
Support center and other							1,020			3,914
Total capital expenditures						$	22,557		$	27,733

Total assets by reportable segment as of December 3, 2013 and June 4, 2013 are as follows (in thousands):

	March 4, 2014		June 4, 2013
Total assets:
Ruby Tuesday concept	$	836,575	$	893,750
Lime Fresh concept		17,725		18,943
Support center and other		115,088		130,490
Total assets	$	969,388	$	1,043,183

The following is a reconciliation of segment profit to (loss)/income from continuing operations before taxes for the 13 and 39 weeks ended March 4, 2014 and March 5, 2013 (in thousands):

	Thirteen weeks ended						Thirty-nine weeks ended
	March 4, 2014			March 5, 2013			March 4, 2014			March 5, 2013
Segment profit	$	24,140		$	29,864		$	30,624		$	74,086
Less:
Depreciation and amortization		(13,912	)		(15,475	)		(43,384	)		(46,854	)
Unallocated selling, general and administrative expenses		(11,551	)		(4,440	)		(37,208	)		(12,691	)
Preopening expenses	–				(237	)		(395	)		(636	)
Trademark impairment		(855	)	–				(855	)	–
Interest expense, net		(5,967	)		(6,591	)		(19,340	)		(20,146	)
Other expense, net		(55	)		(420	)		(1,341	)		(807	)
(Loss)/income from continuing operations before income taxes	$	(8,200	)	$	2,701		$	(71,899	)	$	(7,048	)

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Condensed Consolidated Statements of Operations and Comprehensive (Loss)/Income (Unaudited) (USD $) In Thousands, except Per Share data, unless otherwise specified	3 Months Ended		9 Months Ended
	Mar. 04, 2014	Mar. 05, 2013	Mar. 04, 2014	Mar. 05, 2013
Revenue:
Restaurant sales and operating revenue	$ 293,964	$ 305,835	$ 856,775	$ 930,699
Franchise revenue	1,588	1,548	4,660	4,684
	295,552	307,383	861,435	935,383
Operating costs and expenses:
Cost of merchandise	80,980	83,795	238,587	254,505
Payroll and related costs	101,351	105,364	301,601	313,287
Other restaurant operating costs	64,161	61,946	196,984	193,448
Depreciation	13,327	14,614	41,451	44,303
Selling, general and administrative, net	33,340	30,276	107,386	111,823
Closures and impairments, net	3,771	2,096	25,947	5,074
Trademark impairment	855		855
Interest expense, net	5,967	6,591	19,340	20,146
Loss/(gain) on extinguishment of debt			1,183	(155)
	303,752	304,682	933,334	942,431
(Loss)/income from continuing operations before income taxes	(8,200)	2,701	(71,899)	(7,048)
Benefit for income taxes from continuing operations	(807)	(2,015)	(7,870)	(10,634)
(Loss)/income from continuing operations	(7,393)	4,716	(64,029)	3,586
Income/(loss) from discontinued operations, net of tax	86	(2,520)	97	(13,859)
Net (loss)/income	(7,307)	2,196	(63,932)	(10,273)
Other comprehensive income:
Pension liability reclassification, net of tax	477	380	1,432	1,141
Total comprehensive (loss)/income	$ (6,830)	$ 2,576	$ (62,500)	$ (9,132)
Basic (loss)/income per share:
(Loss)/income from continuing operations (in Dollars per share)	$ (0.12)	$ 0.08	$ (1.06)	$ 0.06
Income/(loss) from discontinued operations (in Dollars per share)	$ 0.00	$ (0.04)	$ 0.00	$ (0.23)
Net (loss)/income per share (in Dollars per share)	$ (0.12)	$ 0.04	$ (1.06)	$ (0.17)
Diluted (loss)/income per share:
(Loss)/income from continuing operations (in Dollars per share)	$ (0.12)	$ 0.08	$ (1.06)	$ 0.06
Income/(loss) from discontinued operations (in Dollars per share)	$ 0.00	$ (0.04)	$ 0.00	$ (0.22)
Net (loss)/income per share (in Dollars per share)	$ (0.12)	$ 0.04	$ (1.06)	$ (0.16)
Weighted average shares:
Basic (in Shares)	60,351	59,778	60,191	61,532
Diluted (in Shares)	60,351	60,312	60,191	61,986

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Note G - Property, Equipment, Assets Held for Sale, Operating Leases, and Sale-Leaseback Transactions

9 Months Ended

Mar. 04, 2014

Property, Plant and Equipment [Abstract]

Property, Plant and Equipment Disclosure [Text Block]

NOTE G – PROPERTY, EQUIPMENT, ASSETS HELD FOR SALE, OPERATING LEASES, AND SALE-LEASEBACK TRANSACTIONS

Property and equipment, net, is comprised of the following (in thousands):

	March 4, 2014		June 4, 2013
Land	$	214,691	$	222,385
Buildings		433,174		448,681
Improvements		371,552		402,371
Restaurant equipment		250,907		260,576
Other equipment		85,881		91,351
Construction in progress and other*		21,964		23,080
		1,378,169		1,448,444
Less accumulated depreciation		569,841		588,614
	$	808,328	$	859,830

* Included in Construction in progress and other as of March 4, 2014 and June 4, 2013 are $16.7 million and $14.8 million, respectively, of assets held for sale that are not classified as such in the Condensed Consolidated Balance Sheets as we do not expect to sell these assets within the next 12 months. These assets primarily consist of parcels of land upon which we have no intention to build restaurants.

Included within the current assets section of our Condensed Consolidated Balance Sheets at March 4, 2014 and June 4, 2013 are amounts classified as held for sale totaling $6.6 million and $9.2 million, respectively. Assets held for sale primarily consist of parcels of land upon which we have no intention to build restaurants, land and buildings of closed restaurants, and various liquor licenses. During the 13 and 39 weeks ended March 4, 2014, we sold surplus properties with carrying values of $1.9 million and $10.1 million, respectively, at net gains of $0.6 million and $0.8 million, respectively. Cash proceeds, net of broker fees, from these sales during the 13 and 39 weeks ended March 4, 2014 totaled $2.5 million and $10.8 million, respectively. During the 13 and 39 weeks ended March 5, 2013, we sold surplus properties with carrying values of $3.3 million and $4.9 million, respectively, at net gains that were negligible and $0.5 million, respectively. Cash proceeds, net of broker fees, from these sales during the 13 and 39 weeks ended March 5, 2013 totaled $3.4 million and $5.5 million, respectively.

Approximately 56% of our 699 Company-owned restaurants are located on leased properties. Of these, approximately 68% are land leases only; the other 32% are for both land and building. The initial terms of these leases expire at various dates over the next 23 years. These leases may also contain required increases in minimum rent at varying times during the lease term and have options to extend the terms of the leases at a rate that is included in the original lease agreement. Most of our leases require the payment of additional (contingent) rent that is based upon a percentage of restaurant sales above agreed upon sales levels for the year. These sales levels vary for each restaurant and are established in the lease agreements. We recognize contingent rental expense (in annual as well as interim periods) prior to the achievement of the specified target that triggers the contingent rental expense, provided that achievement of that target is considered probable.

During the 39 weeks ended March 4, 2014, we completed sale-leaseback transactions of the land and building for three Company-owned Ruby Tuesday concept restaurants for gross cash proceeds of $5.9 million, exclusive of transaction costs of approximately $0.3 million. Equipment was not included. The carrying value of the properties sold was $4.8 million. None of these sale-leaseback transactions occurred during the 13 weeks ended March 4, 2014. During the 13 and 39 weeks ended March 5, 2013, we completed sale-leaseback transactions of the land and building for four and 18 Company-owned Ruby Tuesday concept restaurants, respectively, for gross cash proceeds of $8.8 million and $40.8 million, respectively, exclusive of transaction costs of approximately $0.4 million and $2.0 million, respectively. Equipment was not included. The carrying value of the properties sold was $7.3 million and $30.0 million, respectively. The leases have been classified as operating leases and have initial terms of 15 years, with renewal options of up to 20 years following a rent reset based on fair market value at the end of the initial term. Net proceeds from fiscal 2014 and 2013’s sale-leaseback transactions have been used for general corporate purposes, including debt payments and the repurchase of shares of our common stock.

We realized gains on these transactions during the 39 weeks ended March 4, 2014 and March 5, 2013 of $0.8 million and $8.8 million, respectively, and during the 13 weeks ended March 5, 2013 of $1.1 million, which have been deferred and are being recognized on a straight-line basis over the lease term. The current portion of the deferred gains on all sale-leaseback transactions to date was $1.1 million and $1.0 million as of March 4, 2014 and June 4, 2013, respectively, and is included in Accrued liabilities – Rent and other in our Condensed Consolidated Balance Sheets. The long-term portion of the deferred gains on all sale-leaseback transactions to date was $13.2 million as of both March 4, 2014 and June 4, 2013, and is included in Other deferred liabilities in our Condensed Consolidated Balance Sheets. Amortization of the deferred gains of $0.3 million and $0.8 million for the 13 and 39 weeks ended March 4, 2014, respectively, and $0.2 million and $0.5 million for the 13 and 39 weeks ended March 5, 2013, respectively, is included within Other restaurant operating costs in our Condensed Consolidated Statements of Operations and Comprehensive (Loss)/Income.

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Note F - Inventories

9 Months Ended

Mar. 04, 2014

Inventory Disclosure [Abstract]

Inventory Disclosure [Text Block]

NOTE F – INVENTORIES

Our merchandise inventory was $13.9 million and $21.8 million as of March 4, 2014 and June 4, 2013, respectively. In order to ensure adequate supply and competitive pricing, we have historically purchased lobster in advance of our needs and stored it in third-party facilities prior to our distributor taking possession of the inventory. The decrease in merchandise inventory from the end of the prior fiscal year is due primarily to a reduction in lobster inventory as we have suspended the advance purchasing of lobster to utilize the lobster that is currently on hand.

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Note R - Subsequent Events

9 Months Ended

Mar. 04, 2014

Subsequent Events [Abstract]

Subsequent Events [Text Block]

NOTE R – SUBSEQUENT EVENTS

Amendment and Restatement of Directors’ Plan

On April 9, 2014, the Ruby Tuesday, Inc. Board of Directors adopted a resolution amending and restating the Directors’ Plan to terminate those portions of the plan providing for the award of share-based compensation to non-employee directors but preserving the deferred compensation component of the plan. The amendment and restatement also changes the name of the Directors’ Plan to the Ruby Tuesday, Inc. Deferred Compensation Plan for Directors. All remaining shares of common stock available for issuance under the Directors’ Plan, which were insignificant as of the date of the resolution, were released and will not be reserved for any future purpose. As previously stated in Note L to the Condensed Consolidated Financial Statements, all future share-based compensation granted to non-employee directors will be awarded from shares of common stock available for issuance under the SIP.

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Note N - Commitments and Contingencies

9 Months Ended

Mar. 04, 2014

Commitments and Contingencies Disclosure [Abstract]

Commitments and Contingencies Disclosure [Text Block]

NOTE N – COMMITMENTS AND CONTINGENCIES

Litigation

We are presently, and from time to time, subject to pending claims and lawsuits arising in the ordinary course of business. We provide reserves for such claims when payment is probable and estimable in accordance with GAAP. At this time, in the opinion of management, the ultimate resolution of pending legal proceedings, including the matters referred to below, will not have a material adverse effect on our operations, financial position, or cash flows.

On April 17, 2012, a wage and hour case styled Guttentag, et al vs. Ruby Tuesday, Inc. was filed in the United States District Court, Southern District of New York.  The named plaintiffs, and five additional former employees who have joined the suit as opt-in plaintiffs, allege that the Company violated the Fair Labor Standards Act and state wage and hour laws in New York and Florida.  Plaintiffs filed their motion for conditional certification on March 8, 2013, which sought a nationwide putative class of all current and former servers, bartenders, and food runners who worked for the Company for the three-year period prior to the filing of the lawsuit.  On June 11, 2013, the court entered an order granting conditional certification of the nationwide class requested by plaintiffs, but for the time frame of June 11, 2010 to the present. Notice of the lawsuit and the right to opt-in was mailed to the putative class members in November 2013, and approximately 5%, or about 4,150 of the putative class members, filed consents to opt-in. The parties have been engaged in mediation and continued settlement discussions in an effort to reach a mutually agreeable resolution. These efforts continue on an ongoing basis, with a goal of entering into a final settlement agreement that can be presented to the Court for review and approval.  

On September 30, 2009, an age discrimination case styled Equal Employment Opportunity Commission (Pittsburgh) v. Ruby Tuesday, Inc. (the “EEOC Lawsuit”), was filed in the United States District Court for the Western District of Pennsylvania (the “Court”). The U.S. Equal Employment Opportunity Commission (“EEOC”) Pittsburgh Area Office alleged in the suit that the Company violated the Age Discrimination in Employment Act (“ADEA”) by failing to hire employees within the protected age group in five Pennsylvania restaurants and one Ohio restaurant. On December 9, 2013, the Court approved a consent decree entered into between the EEOC and the Company in Civil Action No. 09-1330. Without any admission of liability, the Company agreed to make five equal monthly payments totaling $575,000 into a qualified settlement account, the fifth and last of which will be made in May 2014. Individuals aged 40 or older who applied for a position at one of the six restaurants from January 1, 2005 through the date of the decree may apply to receive an amount from the settlement account. The Company also agreed to make efforts to recruit and hire more individuals aged 40 or older at the three restaurants involved in the litigation that are currently open. Civil Action 09-1330 is closed, subject to the Court’s continuing jurisdiction over the consent decree.

Not closed, but inactive (as far as we are aware), is the EEOC’s Notice of an ADEA Directed Investigation (“DI”), regarding potential age discrimination in violation of the ADEA in hiring and discharge for all positions at all other restaurants in the United States. On April 30, 2013, the Court entered an order terminating a miscellaneous action filed by the EEOC in furtherance of the DI. We do not believe that the DI will have a material adverse effect on our operations, financial position, or cash flows.

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Note J - Employee Post-Employment Benefits

9 Months Ended

Mar. 04, 2014

Compensation and Retirement Disclosure [Abstract]

Pension and Other Postretirement Benefits Disclosure [Text Block]

NOTE J – EMPLOYEE POST-EMPLOYMENT BENEFITS

We sponsor three defined benefit pension plans for active employees and offer certain postretirement benefits for retirees. A summary of each of these is presented below.

Retirement Plan

RTI sponsors the Morrison Restaurants Inc. Retirement Plan (the “Retirement Plan”). Effective December 31, 1987, the Retirement Plan was amended so that no additional benefits would accrue and no new participants may enter the Retirement Plan after that date. Participants receive benefits based upon salary and length of service.

Minimum funding for the Retirement Plan is determined in accordance with the guidelines set forth in employee benefit and tax laws. From time to time we may contribute additional amounts as we deem appropriate. We estimate that we will be required to make contributions totaling $0.2 million to the Retirement Plan during the remainder of fiscal 2014.

Executive Supplemental Pension Plan and Management Retirement Plan

Under these unfunded defined benefit pension plans, eligible employees earn supplemental retirement income based upon salary and length of service, reduced by social security benefits and amounts otherwise receivable under other specified Company retirement plans. Effective June 1, 2001, the Management Retirement Plan was amended so that no additional benefits would accrue and no new participants may enter the plan after that date.

Postretirement Medical and Life Benefits

Our Postretirement Medical and Life Benefits plans provide medical and life insurance benefits to certain retirees. The medical plan requires retiree cost sharing provisions that are more substantial for employees who retire after January 1, 1990.

The following tables detail the components of net periodic benefit costs and the amounts recognized in our Condensed Consolidated Financial Statements for the Retirement Plan, Management Retirement Plan, and the Executive Supplemental Pension Plan (collectively, the “Pension Plans”) and the Postretirement Medical and Life Benefits plans (in thousands):

	Pension Benefits
	Thirteen weeks ended						Thirty-nine weeks ended
	March 4, 2014			March 5, 2013			March 4, 2014			March 5, 2013
Service cost	$	89		$	115		$	267		$	345
Interest cost		435			525			1,303			1,575
Expected return on plan assets		(111	)		(102	)		(333	)		(306	)
Amortization of prior service cost (a)	–				26		–				78
Recognized actuarial loss		427			565			1,283			1,695
Net periodic benefit cost	$	840		$	1,129		$	2,520		$	3,387

	Postretirement Medical and Life Benefits
	Thirteen weeks ended						Thirty-nine weeks ended
	March 4, 2014			March 5, 2013			March 4, 2014			March 5, 2013
Service cost	$	4		$	3		$	10		$	9
Interest cost		16			15			50			45
Amortization of prior service cost (a)		(12	)		(14	)		(34	)		(41	)
Recognized actuarial loss		61			53			183			159
Net periodic benefit cost	$	69		$	57		$	209		$	172

(a) Prior service costs are amortized on a straight-line basis over the average remaining service period of employees expected to receive benefits.

During the 13 and 39 weeks ended March 4, 2014 and March 5, 2013, we reclassified recognized actuarial losses and amortized prior service costs out of accumulated other comprehensive loss and into pension expense, which is included in Selling, general and administrative, net within our Condensed Consolidated Statements of Operations, as follows (in thousands):

	Thirteen weeks ended						Thirty-nine weeks ended
	March 4, 2014			March 5, 2013			March 4, 2014			March 5, 2013
Recognized actuarial loss	$	489		$	618		$	1,466		$	1,854
Amortization of prior service cost		(12	)		13			(34	)		38
		477			631			1,432			1,892
Income taxes	–				(251	)	–				(751	)
Pension liability reclassification, net of tax	$	477		$	380		$	1,432		$	1,141

We also sponsor two defined contribution retirement savings plans. Information regarding these plans is included in our Annual Report on Form 10-K for the fiscal year ended June 4, 2013.

Executive Separations and Corporate Support Services Restructuring

On June 7, 2013, our then Executive Vice President, Chief Operations Officer separated employment with the Company. During the first quarter of fiscal 2014, we recorded severance expense of $0.9 million in connection with the separation agreement for the former executive, which represents obligations pursuant to the Ruby Tuesday, Inc. Severance Pay Plan (the “Severance Plan”) of two times base salary. The Severance Plan was subsequently terminated on October 7, 2013. Of the amount recorded as severance expense for our former executive, $0.5 million was paid during the first quarter of fiscal 2014, and the remaining $0.4 million was paid during the 13 weeks ended March 4, 2014 in accordance with the Severance Plan.

On October 30, 2013, our then Senior Vice President, Chief People Officer separated employment with the Company. During the second quarter of fiscal 2014, we recorded severance expense of $0.4 million in connection with his separation agreement, an amount representing one year of his annual base salary plus his remaining vacation for fiscal 2014. Of this amount, $0.3 million was paid during the third quarter of fiscal 2014 and the remaining amounts will be paid over two equal future installments.

On November 20, 2013 and December 11, 2013, we eliminated approximately 50 and 17 management and staff personnel, respectively, at our Restaurant Support Services Center in Maryville, Tennessee. These reductions occurred in connection with an ongoing comprehensive review of our cost structure. These executive and other employee separations resulted in transition-related costs during the 13 and 39 weeks ended March 4, 2014 of $0.3 million and $3.5 million, respectively, for employee severance and unused vacation.

As of March 4, 2014, a liability of $0.9 million representing unpaid obligations in connection with the restructurings was included within Accrued liabilities: Payroll and related costs in our Condensed Consolidated Balance Sheet. A roll forward of our obligations in connection with employee separations is as follows (in thousands):

Balance at June 4, 2013	$	310
Employee severance and unused vacation accruals		3,541
Cash payments		(2,976	)
Balance at March 4, 2014	$	875

See Note L to the Condensed Consolidated Financial Statements for discussion of the impact of executive separations to our share-based employee compensation costs.

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Note L - Share-Based Employee Compensation (Details) - Summary of Restricted Stock Activity (USD $)	3 Months Ended	9 Months Ended
	Sep. 03, 2013	Mar. 04, 2014
Restricted Stock, Performance-based [Member]
Note L - Share-Based Employee Compensation (Details) - Summary of Restricted Stock Activity [Line Items]
Non-vested at beginning of year	356,000	356,000
Non-vested at beginning of year	$ 7.06	$ 7.06
Vested		(18,000)
Vested		$ 7.87
Forfeited	269,000	(270,000)
Forfeited		$ 6.81
Non-vested at end of year		68,000
Non-vested at end of year		$ 7.81
Restricted Stock, Service-based [Member]
Note L - Share-Based Employee Compensation (Details) - Summary of Restricted Stock Activity [Line Items]
Non-vested at beginning of year	1,136,000	1,136,000
Non-vested at beginning of year	$ 7.92	$ 7.92
Granted		423,000
Granted		$ 8.83
Vested		(398,000)
Vested		$ 8.12
Forfeited		(140,000)
Forfeited		$ 8.76
Non-vested at end of year		1,021,000
Non-vested at end of year		$ 8.11

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Note H - Long-Term Debt and Capital Leases

9 Months Ended

Mar. 04, 2014

Disclosure Text Block Supplement [Abstract]

Debt and Capital Leases Disclosures [Text Block]

NOTE H – LONG-TERM DEBT AND CAPITAL LEASES

Long-term debt and capital lease obligations consist of the following (in thousands):

	March 4, 2014			June 4, 2013
Senior unsecured notes	$	222,113		$	235,000
Unamortized discount		(2,670	)		(3,083	)
Senior unsecured notes less unamortized discount		219,443			231,917
Revolving credit facility	–			–
Mortgage loan obligations		47,239			66,883
Capital lease obligations		191			202
		266,873			299,002
Less current maturities		4,769			8,487
	$	262,104		$	290,515

On May 14, 2012, we entered into an indenture (the “Indenture”) among the Company, certain subsidiaries of the Company as guarantors and Wells Fargo Bank, National Association as trustee, governing the Company’s $250.0 million aggregate principal amount of 7.625% senior notes due 2020 (the “Senior Notes”). The Senior Notes were issued at a discount of $3.7 million, which is being amortized using the effective interest method over the eight-year term of the notes.

The Senior Notes are guaranteed on a senior unsecured basis by our existing and future domestic restricted subsidiaries, subject to certain exceptions. They rank equal in right of payment with our existing and future senior indebtedness and senior in right of payment to any of our future subordinated indebtedness. The Senior Notes are effectively subordinated to all of our secured debt, including borrowings outstanding under our revolving credit facility, to the extent of the value of the assets securing such debt and structurally subordinated to all of the liabilities of our existing and future subsidiaries that do not guarantee the Senior Notes.

Interest on the Senior Notes is calculated at 7.625% per annum, payable semiannually on each May 15 and November 15 to holders of record on the May 1 or November 1 immediately preceding the interest payment date. Accrued interest on the Senior Notes and our other long-term debt and capital lease obligations is included in Accrued liabilities – Rent and other in our Consolidated Balance Sheets. The Senior Notes mature on May 15, 2020.

At any time prior to May 15, 2016, we may redeem the Senior Notes, in whole or in part, at a redemption price equal to 100% of the principal amount, plus an applicable “make-whole” premium and accrued and unpaid interest. At any time on or after May 15, 2016, we may redeem the Senior Notes, in whole or in part, at the redemption prices specified in the Indenture plus accrued and unpaid interest. At any time prior to May 15, 2015, we may redeem up to 35% of the Senior Notes from the proceeds of certain equity offerings. There is no sinking fund for the Senior Notes.

The Indenture contains covenants that limit, among other things, our ability and the ability of certain of our subsidiaries to (i) incur or guarantee additional indebtedness; (ii) declare or pay dividends, redeem stock or make other distributions to stockholders; (iii) make certain investments; (iv) create liens or use assets as security in other transactions; (v) merge or consolidate, or sell, transfer, lease or dispose of substantially all of their assets; (vi) enter into transactions with affiliates; and (vii) sell or transfer certain assets. These covenants are subject to a number of important exceptions and qualifications, as described in the Indenture, and certain covenants will not apply at any time when the Senior Notes are rated investment grade by the Rating Agencies, as defined in the Indenture. The Indenture also provides for events of default, which, if any of them occurs, would permit or require the principal, premium, if any, interest and any other monetary obligations on all the then outstanding Senior Notes to be due and payable immediately.

Under the terms of our December 2013 four-year revolving credit agreement (the “Senior Credit Facility” discussed below) we are allowed, under certain circumstances, to repurchase up to $20.0 million of the Senior Notes in any fiscal year. During the 39 weeks ended March 4, 2014, we repurchased $12.9 million of the Senior Notes for $13.0 million plus $0.2 million of accrued interest. We realized losses of $0.5 million on these transactions. The balance on the Senior Notes was $222.1 million at March 4, 2014 as a result of these repurchases.

On December 3, 2013, we entered into the Senior Credit Facility under which we may borrow up to $50.0 million with the option, subject to certain conditions, to increase the facility by up to $35.0 million. The Senior Credit Facility, which was obtained to provide access to capital for general corporate purposes, replaced a previous five-year $200.0 million credit facility that was set to expire in December 2015. The terms of the Senior Credit Facility provide for a $25.0 million sublimit for the issuance of standby letters of credit. In connection with entering into the Senior Credit Facility, included within Interest expense, net and Loss/(gain) on extinguishment of debt in our Condensed Consolidated Statements of Operations and Comprehensive (Loss)/Income for the 39 weeks ended March 4, 2014 are charges of $0.7 million relating to the write-off of the pro rata portion of unamortized debt issuance costs associated with our previous credit facility.

Under the Senior Credit Facility, interest rates charged on borrowings can vary depending on the interest rate option we choose to utilize. Our options for the rate are a Base Rate or LIBOR, plus an applicable margin. The Base Rate is defined as the highest of the issuing bank’s prime rate, the Federal Funds rate plus 0.50%, or the Adjusted LIBO rate (as defined in the Senior Credit Facility) plus 1.0%. The applicable margin for the LIBOR rate-based option is a percentage ranging from 2.50% to 3.50% and for the Base Rate option is a percentage ranging from 1.50% to 2.50%. We pay commitment fees quarterly ranging from 0.40% to 0.75% on the unused portion of the Senior Credit Facility.

As security for the Senior Credit Facility, we granted the lenders liens and security interests in substantially all of the shares of capital stock of the Company and each of our present and future subsidiaries, substantially all of the personal property of the Company and each of our present and future subsidiaries, and the real property, improvements, and fixtures of 49 Ruby Tuesday restaurants. The real property, improvements, and fixtures of the 49 restaurants pledged as collateral appraised at $101.4 million at the time of the transaction and have a March 4, 2014 net book value of $80.8 million.

Under the terms of the Senior Credit Facility, we had no borrowings outstanding at March 4, 2014. After consideration of letters of credit outstanding, we had $37.6 million available under the Senior Credit Facility as of March 4, 2014.

The Senior Credit Facility contains a number of customary affirmative and negative covenants that, among other things, limit or restrict our ability to incur liens, engage in mergers or other fundamental changes, make acquisitions, investments, loans and advances, pay dividends or other distributions, sell or otherwise dispose of certain assets, engage in certain transactions with affiliates, enter into burdensome agreements or certain hedging agreements, amend organizational documents, change accounting practices, incur additional indebtedness and prepay other indebtedness. In addition, under the Senior Credit Facility, we are required to comply with financial covenants relating to the maintenance of a maximum leverage ratio and a minimum fixed charge coverage ratio. The terms of the Senior Credit Facility require us to maintain a maximum leverage ratio of no more than 4.75 to 1.0 and a minimum fixed charge coverage ratio of 1.40 to 1.0 for the quarter ended March 4, 2014. The terms of the Senior Credit Facility require us to maintain a maximum leverage ratio of no more than 5.00 to 1.0 and a minimum fixed charge coverage ratio of 1.30 to 1.0 for the quarter ending June 3, 2014. The minimum required ratios fluctuate thereafter as provided in the Senior Credit Facility.

The Senior Credit Facility terminates not later than December 3, 2017.  Upon the occurrence of an event of default, the lenders may terminate the loan commitments, accelerate all loans and exercise any of their rights under the Senior Credit Facility and any ancillary loan documents.

On December 3, 2013, in connection with our entry into the Senior Credit Facility, the Company and certain of its subsidiaries entered into loan modification agreements (the “Loan Modification Agreements”) with certain mortgage lenders to, among other things, provide waivers and consents under certain of our mortgage loan obligations to enter into the Senior Credit Facility. The Loan Modification Agreements also, among other things, amend certain financial reporting requirements under the specified loans and modify and/or provide for certain financial covenants for the specified loans, including the minimum consolidated fixed charge coverage ratio and the minimum adjusted total debt to EBITDAR ratio. In conjunction with one of the loan modification agreements, on January 2, 2014, we paid approximately $5.0 million to retire a specified portion of certain mortgage loan obligations.

Our $47.2 million in mortgage loan obligations as of March 4, 2014 consists of various loans acquired upon franchise acquisitions. These loans, which mature between January 2015 and November 2022, have balances which range from $0.1 million to $7.7 million and interest rates of 7.60% to 10.92%. Many of the properties acquired from franchisees collateralize the loans outstanding.

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Note I - Closures and Impairments Expense, Including Trademark Impairments

9 Months Ended

Mar. 04, 2014

Disclosure Text Block Supplement [Abstract]

Asset Impairment Charges [Text Block]

NOTE I – CLOSURES AND IMPAIRMENTS EXPENSE, INCLUDING TRADEMARK IMPAIRMENTS

Closures and impairments, net include the following for the 13 and 39 weeks ended March 4, 2014 and March 5, 2013 (in thousands):

	Thirteen weeks ended						Thirty-nine weeks ended
	March 4, 2014			March 5, 2013			March 4, 2014			March 5, 2013
Closures and impairments from continuing operations:
Property impairments	$	2,908		$	543		$	20,156		$	3,203
Closed restaurant lease reserves		257			1,340			4,554			1,714
Other closing costs		983			263			1,561			805
Loss/(gain) on sale of surplus properties		(377	)		(50	)		(324	)		(648	)
Closures and impairments, net	$	3,771		$	2,096		$	25,947		$	5,074
Closures and impairments from discontinued operations	$	(77	)	$	3,958		$	(12	)	$	20,355

A roll forward of our future lease obligations associated with closed properties is as follows (in thousands):

	Lease Obligations
	Continuing Operations			Discontinued Concepts			Total
Balance at June 4, 2013	$	6,417		$	2,310		$	8,727
Closing expense including rent and other lease charges		4,554			(6	)		4,548
Payments		(3,628	)		(1,080	)		(4,708	)
Other adjustments		591			2			593
Balance at March 4, 2014	$	7,934		$	1,226		$	9,160

For the remainder of fiscal 2014 and beyond, our focus will be on obtaining settlements, or subleases as necessary, on as many of these leases as possible and these settlements could be higher or lower than the amounts recorded. The actual amount of any cash payments made by the Company for lease contract termination costs will be dependent upon ongoing negotiations with the landlords of the leased restaurant properties.

During the quarter ended March 4, 2014, we closed 24 Ruby Tuesday concept restaurants in connection with a plan approved by the Board of Directors of Ruby Tuesday, Inc. on January 7, 2014. Of these closures, 11 of these restaurants closed upon expiration of their lease. We plan to close approximately six to nine additional Ruby Tuesday concept restaurants during the fourth quarter of fiscal 2014 in connection with this plan as currently modified. Included within Closures and impairments, net for the 39 weeks ended March 4, 2014 are impairment charges recognized during the second quarter of the current year of $4.4 million in connection with the early restaurant closures.

In addition to the impairment charges recorded in connection with the planned closures discussed above, during the 13 and 39 weeks ended March 4, 2014, we recorded $2.2 million and $12.5 million, respectively, of impairments relating to five and 27 open restaurants, respectively, with deteriorating operational performance and a $0.9 million impairment charge during the 13 weeks ended March 4, 2014 for the Lime Fresh trademark. The Lime Fresh trademark, which previously had been impaired by $5.0 million in the fourth quarter of fiscal 2013, has a net book value of $3.7 million remaining at March 4, 2014.

At March 4, 2014, we had 58 restaurants that had been open more than one year with rolling 12-month negative cash flows of which 39 have been impaired to salvage value. Of the 19 which remained, we reviewed the plans to improve cash flows at each of the restaurants and determined that no impairment was currently necessary. The remaining net book value of these 19 restaurants, seven of which are located on owned properties, was $19.7 million at March 4, 2014.

Should sales at these restaurants not improve within a reasonable period of time, further impairment charges are possible. Considerable management judgment is necessary to estimate future cash flows, including cash flows from continuing use, terminal value, closure costs, salvage value, and sublease income. Accordingly, actual results could vary significantly from our estimates.

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Note K - Income Taxes

9 Months Ended

Mar. 04, 2014

Income Tax Disclosure [Abstract]

Income Tax Disclosure [Text Block]

NOTE K – INCOME TAXES

Under Accounting Standards Codification 740 (“ASC 740”), companies are required to apply their estimated annual tax rate on a year-to-date basis in each interim period. Under ASC 740, companies should not apply the estimated annual tax rate to interim financial results if the estimated annual tax rate is not reliably predictable. In this situation, the interim tax rate should be based on the actual year-to-date results. Due to changes in our projections, which have fluctuated as we work through our brand repositioning, a reliable projection of our annual effective rate has been difficult to determine. As such, we recorded a tax benefit for the first three quarters of fiscal 2014 based on the actual year-to-date results, in accordance with ASC 740.

We recorded a tax benefit from continuing operations of $0.8 million and $7.9 million for the 13- and 39-week periods ended March 4, 2014, respectively, compared to $2.0 million and $10.6 million for the 13- and 39-week periods ended March 5, 2013, respectively, to reflect the current benefit of federal and certain state net operating loss carrybacks as well as the recognition of unrecognized tax benefits. The change in income taxes is attributable to an increase in the valuation allowance for deferred tax assets as discussed below, offset by increased pre-tax losses for the 13 and 39 weeks ending March 4, 2014 as compared to the same periods of the prior year.

We regularly evaluate the need for a valuation allowance for deferred tax assets by assessing whether it is more likely than not that we will realize the deferred tax assets in the future.  A valuation allowance assessment is performed each reporting period, with any additions or adjustments reflected in earnings in the period of assessment.  In assessing the need for a valuation allowance, we have considered both positive and negative evidence related to the likelihood of realization of the deferred tax assets for each jurisdiction.

Through the third quarter of fiscal 2013, we had concluded that objective and subjective positive evidence outweighed negative evidence, and concluded it was more likely than not to realize all of our federal and most of our state deferred tax assets, except for loss carryforwards in certain states that have had cumulative losses due to our state tax planning strategies and/or relatively short carryforward periods and annual limits on how much loss carryforward can be used to offset future taxable income.   During the fourth quarter of fiscal 2013, we recorded a valuation allowance following the conclusion that the negative evidence outweighed the positive evidence. 

Our valuation allowance totaled $50.6 million and $24.6 million as of March 4, 2014 and June 4, 2013, respectively. Netted against our tax benefit from continuing operations for the 13- and 39-week periods ended March 4, 2014 were charges of $5.6 million and $27.5 million, respectively, representing the amount reserved for the increase in deferred tax assets during the periods which primarily related to general business credit carryforwards and state net operating loss carryforwards.

We had a liability for unrecognized tax benefits, exclusive of accrued interest and penalties, of $6.9 million and $13.0 million as of March 4, 2014 and June 4, 2013, respectively. As of March 4, 2014 and June 4, 2013, the total amount of unrecognized tax benefits that, if recognized, would impact our effective tax rate was $2.3 million and $3.5 million, respectively. The liability for unrecognized tax benefits as of March 4, 2014 includes $0.3 million related to tax positions for which it is reasonably possible that the total amounts could change within the next twelve months based on the outcome of examinations and negotiations with tax authorities.

Interest and penalties related to unrecognized tax benefits are recognized as components of income tax expense. As of March 4, 2014 and June 4, 2013, we had accrued $0.6 million and $0.9 million, respectively, for the payment of interest and penalties. During the first 39 weeks of fiscal 2014, accrued interest and penalties decreased $0.3 million, of which $0.1 million affected the effective tax rate for the same time period.

At March 4, 2014, we are no longer subject to U.S. federal income tax examinations by tax authorities for fiscal years prior to 2011, and with few exceptions, state and local examinations by tax authorities prior to fiscal year 2011.

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Note N - Commitments and Contingencies (Details) (USD $)		1 Months Ended
	Mar. 04, 2014	Jan. 31, 2014 Subsequent Event [Member] Equal Employement Opportunity (Pittsburgh) [Member]	May 31, 2014 Scenario, Forecast [Member] Equal Employement Opportunity (Pittsburgh) [Member]	Apr. 30, 2014 Scenario, Forecast [Member] Equal Employement Opportunity (Pittsburgh) [Member]	Mar. 31, 2014 Scenario, Forecast [Member] Equal Employement Opportunity (Pittsburgh) [Member]	Feb. 28, 2014 Scenario, Forecast [Member] Equal Employement Opportunity (Pittsburgh) [Member]	Sep. 30, 2009 Pennslyvania [Member] Equal Employement Opportunity (Pittsburgh) [Member]	Sep. 30, 2009 Ohio [Member] Equal Employement Opportunity (Pittsburgh) [Member]
Note N - Commitments and Contingencies (Details) [Line Items]
Number of Restaurants	699						5	1
Litigation Settlement, Amount		$ 575,000	$ 575,000	$ 575,000	$ 575,000	$ 575,000

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Note O - Fair Value Measurements (Details) - Fair Values of Financial Assets and Liabilities Measured on a Recurring Basis (USD $) In Thousands, unless otherwise specified	Mar. 04, 2014	Jun. 04, 2013
Note O - Fair Value Measurements (Details) - Fair Values of Financial Assets and Liabilities Measured on a Recurring Basis [Line Items]
Deferred compensation plan: RTI common stock – Equity	$ 500	$ 1,094
Deferred compensation plan: RTI common stock – Equity	(500)	(1,094)
Deferred Compensation Plan [Member] | Fair Value, Inputs, Level 1 [Member]
Note O - Fair Value Measurements (Details) - Fair Values of Financial Assets and Liabilities Measured on a Recurring Basis [Line Items]
Deferred compensation plan: other investments – Assets	9,006	8,721
Deferred compensation plan: other investments – Liabilities	(9,006)	(8,721)
Fair Value, Inputs, Level 1 [Member]
Note O - Fair Value Measurements (Details) - Fair Values of Financial Assets and Liabilities Measured on a Recurring Basis [Line Items]
Deferred compensation plan: RTI common stock – Equity	500	1,094
Deferred compensation plan: RTI common stock – Equity	$ (500)	$ (1,094)

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Note M - Segment Reporting (Details) - Reconciliation of Segment Profit to (Loss)/Income from Continuing Operations before Taxes (USD $) In Thousands, unless otherwise specified	3 Months Ended		9 Months Ended
	Mar. 04, 2014	Mar. 05, 2013	Mar. 04, 2014	Mar. 05, 2013
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items]
Segment profit	$ 24,140	$ 29,864	$ 30,624	$ 74,086
Less:
Depreciation and amortization	(13,912)	(15,475)	(43,384)	(46,854)
Unallocated selling, general and administrative expenses	(33,340)	(30,276)	(107,386)	(111,823)
Preopening expenses		(237)	(395)	(636)
Trademark impairment	(855)		(855)
Interest expense, net	(5,967)	(6,591)	(19,340)	(20,146)
Other expense, net	(55)	(420)	(1,341)	(807)
(Loss)/income from continuing operations before income taxes	(8,200)	2,701	(71,899)	(7,048)
Corporate, Non-Segment [Member]
Less:
Unallocated selling, general and administrative expenses	$ (11,551)	$ (4,440)	$ (37,208)	$ (12,691)

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Note O - Fair Value Measurements (Tables)

9 Months Ended

Mar. 04, 2014

Fair Value Disclosures [Abstract]

Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis [Table Text Block]

	Level		March 4, 2014			June 4, 2013
Deferred compensation plan: other investments – Assets		1	$	9,006		$	8,721
Deferred compensation plan: other investments – Liabilities		1		(9,006	)		(8,721	)
Deferred compensation plan: RTI common stock – Equity		1		500			1,094
Deferred compensation plan: RTI common stock – Equity		1		(500	)		(1,094	)
Total			–			–

Fair Value Measurements, Nonrecurring [Table Text Block]

	Fair Value Measurements
	Level		March 4, 2014		June 4, 2013
Long-lived assets held for sale *		2	$	23,299	$	24,006
Long-lived assets held for use		2		7,992		5,802
Total			$	31,291	$	29,808

Schedule of Gains and Losses Recognized from Fair Value Measurements on Non-recurring Basis [Table Text Block]

	Thirteen weeks ended				Thirty-nine weeks ended
	March 4, 2014		March 5, 2013		March 4, 2014		March 5, 2013
Included within continuing operations
Long-lived assets held for sale	$	142	$	543	$	726	$	1,054
Long-lived assets held for use		3,621	–			20,285		2,149
	$	3,763	$	543	$	21,011	$	3,203
Included within discontinued operations	$	25	$	1,669	$	178	$	17,971

Fair Value, by Balance Sheet Grouping [Table Text Block]

	March 4, 2014				June 4, 2013
	Carrying Amount		Fair Value		Carrying Amount		Fair Value
Long-term debt and capital leases	$	266,873	$	248,214	$	299,002	$	310,441
Letters of credit	–			405	–			270

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Note I - Closures and Impairments Expense, Including Trademark Impairments (Details) - Closures and Impairments Expenses (USD $) In Thousands, unless otherwise specified	3 Months Ended		9 Months Ended
	Mar. 04, 2014	Mar. 05, 2013	Mar. 04, 2014	Mar. 05, 2013
Note I - Closures and Impairments Expense, Including Trademark Impairments (Details) - Closures and Impairments Expenses [Line Items]
Closures and impairment expenses	$ 3,771	$ 2,096	$ 25,947	$ 5,074
Closed restaurant lease reserves			4,548
Property [Member] | Continuing Operations [Member]
Note I - Closures and Impairments Expense, Including Trademark Impairments (Details) - Closures and Impairments Expenses [Line Items]
Closures and impairment expenses	2,908	543	20,156	3,203
Other Closing Expense [Member] | Continuing Operations [Member]
Note I - Closures and Impairments Expense, Including Trademark Impairments (Details) - Closures and Impairments Expenses [Line Items]
Closures and impairment expenses	983	263	1,561	805
Continuing Operations [Member]
Note I - Closures and Impairments Expense, Including Trademark Impairments (Details) - Closures and Impairments Expenses [Line Items]
Closures and impairment expenses	3,771	2,096	25,947	5,074
Loss/(gain) on sale of surplus properties	(377)	(50)	(324)	(648)
Closed restaurant lease reserves	257	1,340	4,554	1,714
Discontinued Operations [Member]
Note I - Closures and Impairments Expense, Including Trademark Impairments (Details) - Closures and Impairments Expenses [Line Items]
Closures and impairment expenses	(77)	3,958	(12)	20,355
Closed restaurant lease reserves			$ (6)

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Note P - Supplemental Condensed Consolidating Financial Statements

9 Months Ended

Mar. 04, 2014

Disclosure Text Block Supplement [Abstract]

Condensed Financial Statements [Text Block]

NOTE P – SUPPLEMENTAL CONDENSED CONSOLIDATING FINANCIAL STATEMENTS

As discussed in Note H to the Consolidated Financial Statements, the Senior Notes are a liability of Ruby Tuesday, Inc. (the “Parent”) and are guaranteed on a senior unsecured basis by our existing and future domestic restricted subsidiaries, subject to certain exceptions (the “Guarantors”). Each of the Guarantors is wholly-owned by Ruby Tuesday, Inc. None of the few remaining subsidiaries of Ruby Tuesday, Inc., which were primarily created to hold liquor license assets, guarantee the Senior Notes (the “Non-Guarantors”). Our Non-Guarantor subsidiaries are immaterial and are aggregated within the Parent information disclosed below.

The following condensed consolidating financial information, which has been prepared in accordance with the requirements for presentation of Rule 3-10(f) of Regulation S-X promulgated by the Securities and Exchange Commission, presents the condensed consolidating financial information separately for the Parent, the Guarantors, and elimination entries necessary to consolidate the Parent and Guarantors. Investments in wholly-owned subsidiaries are accounted for using the equity method for purposes of the consolidated presentation. The principal elimination entries eliminate investments in subsidiaries and intercompany balances and transactions.

Condensed Consolidating Balance Sheet

As of March 4, 2014

(In thousands)

	Parent			Guarantors		Eliminations			Consolidated
Assets
Current assets:
Cash and cash equivalents	$	44,134		$	340	–			$	44,474
Accounts receivable		2,368			2,676	–				5,044
Inventories		16,092			6,648	–				22,740
Income tax receivable		133,739		–			(129,498	)		4,241
Deferred income taxes		455			3,842	–				4,297
Other current assets		16,856			3,280	–				20,136
Total current assets		213,644			16,786		(129,498	)		100,932
Property and equipment, net		598,601			209,727	–				808,328
Investment in subsidiaries		153,842		–			(153,842	)	–
Due from/(to) subsidiaries		89,095			240,271		(329,366	)	–
Other assets		47,140			12,988	–				60,128
Total assets	$	1,102,322		$	479,772	$	(612,706	)	$	969,388
Liabilities & Shareholders’ Equity
Current liabilities:
Accounts payable	$	23,922		$	5,504	–			$	29,426
Accrued and other current liabilities		50,843			37,068	–				87,911
Current maturities of long-term debt, including capital leases		(348	)		5,117	–				4,769
Income tax payable	–				129,498		(129,498	)	–
Total current liabilities		74,417			177,187		(129,498	)		122,106
Long-term debt and capital leases,
less current maturities		219,981			42,123	–				262,104
Deferred income taxes		(1,399	)		3,842	–				2,443
Due to/(from) subsidiaries		240,271			89,095		(329,366	)	–
Other deferred liabilities		107,840			13,683	–				121,523
Total liabilities		641,110			325,930		(458,864	)		508,176
Shareholders’ equity:
Common stock		614		–		–				614
Capital in excess of par value		74,470		–		–				74,470
Retained earnings		395,640			153,842		(153,842	)		395,640
Accumulated other comprehensive loss		(9,512	)	–		–				(9,512	)
Total shareholders’ equity		461,212			153,842		(153,842	)		461,212
Total liabilities & shareholders’ equity	$	1,102,322		$	479,772	$	(612,706	)	$	969,388

Condensed Consolidating Balance Sheet

As of June 4, 2013

(In thousands)

	Parent			Guarantors		Eliminations			Consolidated
Assets
Current assets:
Cash and cash equivalents	$	52,635		$	272	–			$	52,907
Accounts receivable		1,854			2,980	–				4,834
Inventories		21,961			8,911	–				30,872
Income tax receivable		118,329		–			(116,429	)		1,900
Deferred income taxes		5,372			1,924	–				7,296
Other current assets		19,519			3,836	–				23,355
Total current assets		219,670			17,923		(116,429	)		121,164
Property and equipment, net		635,478			224,352	–				859,830
Investment in subsidiaries		167,887		–			(167,887	)	–
Due from/(to) subsidiaries		76,485			230,583		(307,068	)	–
Other assets		46,812			15,377	–				62,189
Total assets	$	1,146,332		$	488,235	$	(591,384	)	$	1,043,183
Liabilities & Shareholders’ Equity
Current liabilities:
Accounts payable	$	11,725		$	3,239	–			$	14,964
Accrued and other current liabilities		47,775			34,406	–				82,181
Current maturities of long-term debt, including capital leases		(347	)		8,834	–				8,487
Income tax payable	–				116,429		(116,429	)	–
Total current liabilities		59,153			162,908		(116,429	)		105,632
Long-term debt and capital leases, less current maturities		232,462			58,053	–				290,515
Deferred income taxes		(1,070	)		6,823	–				5,753
Due to/(from) subsidiaries		230,583			76,485		(307,068	)	–
Other deferred liabilities		108,369			16,079	–				124,448
Total liabilities		629,497			320,348		(423,497	)		526,348
Shareholders’ equity:
Common stock		612		–		–				612
Capital in excess of par value		67,596		–		–				67,596
Retained earnings		459,572			167,887		(167,887	)		459,572
Accumulated other comprehensive loss		(10,945	)	–		–				(10,945	)
Total shareholders’ equity		516,835			167,887		(167,887	)		516,835
Total liabilities & shareholders’ equity	$	1,146,332		$	488,235	$	(591,384	)	$	1,043,183

Condensed Consolidating Statement of Operations and

Comprehensive (Loss)/Income

For the Thirteen Weeks Ended March 4, 2014

(In thousands)

	Parent			Guarantors			Eliminations			Consolidated
Revenue:
Restaurant sales and operating revenue	$	212,249		$	81,715		–			$	293,964
Franchise revenue		63			1,525		–				1,588
		212,312			83,240		–				295,552
Operating costs and expenses:
Cost of merchandise		58,550			22,430		–				80,980
Payroll and related costs		71,742			29,609		–				101,351
Other restaurant operating costs		46,765			17,396		–				64,161
Depreciation		9,787			3,540		–				13,327
Selling, general, and administrative		16,532			16,808		–				33,340
Intercompany selling, general, and administrative allocations		14,908			(14,908	)	–			–
Closures and impairments		2,407			1,364		–				3,771
Trademark impairment	–				855		–				855
Equity in earnings of subsidiaries		(8,886	)	–				8,886		–
Interest expense, net		5,089			878		–				5,967
Intercompany interest expense/(income)		3,274			(3,274	)	–			–
		220,168			74,698			8,886			303,752
(Loss)/income from continuing operations before income taxes		(7,856	)		8,542			(8,886	)		(8,200	)
Benefit for income taxes from continuing operations		(463	)		(344	)	–				(807	)
(Loss)/income from continuing operations		(7,393	)		8,886			(8,886	)		(7,393	)
Income from discontinued operations, net of tax		86		–			–				86
Net (loss)/income	$	(7,307	)	$	8,886		$	(8,886	)	$	(7,307	)
Other comprehensive income:
Pension liability reclassification, net of tax		477		–			–				477
Total comprehensive (loss)/income	$	(6,830	)	$	8,886		$	(8,886	)	$	(6,830	)

Condensed Consolidating Statement of Operations and

Comprehensive (Loss)/Income

For the Thirty-Nine Weeks Ended March 4, 2014

(In thousands)

	Parent			Guarantors			Eliminations			Consolidated
Revenue:
Restaurant sales and operating revenue	$	621,181		$	235,594		–			$	856,775
Franchise revenue		182			4,478		–				4,660
		621,363			240,072		–				861,435
Operating costs and expenses:
Cost of merchandise		173,397			65,190		–				238,587
Payroll and related costs		214,633			86,968		–				301,601
Other restaurant operating costs		141,660			55,324		–				196,984
Depreciation		30,359			11,092		–				41,451
Selling, general, and administrative		68,250			39,136		–				107,386
Intercompany selling, general, and administrative allocations		43,679			(43,679	)	–			–
Closures and impairments		15,630			10,317		–				25,947
Trademark impairment	–				855		–				855
Equity in earnings of subsidiaries		(13,307	)	–				13,307		–
Interest expense, net		15,320			4,020		–				19,340
Intercompany interest expense/(income)		9,688			(9,688	)	–			–
Loss on extinguishment of debt		1,183		–			–				1,183
		700,492			219,535			13,307			933,334
(Loss)/income from continuing operations before income taxes		(79,129	)		20,537			(13,307	)		(71,899	)
(Benefit)/provision for income taxes from continuing operations		(15,100	)		7,230		–				(7,870	)
(Loss)/income from continuing operations		(64,029	)		13,307			(13,307	)		(64,029	)
Income from discontinued operations, net of tax		97		–			–				97
Net (loss)/income	$	(63,932	)	$	13,307		$	(13,307	)	$	(63,932	)
Other comprehensive income:
Pension liability reclassification, net of tax		1,432		–			–				1,432
Total comprehensive (loss)/income	$	(62,500	)	$	13,307		$	(13,307	)	$	(62,500	)

Condensed Consolidating Statement of Operations and

Comprehensive (Loss)/Income

For the Thirteen Weeks Ended March 5, 2013

(In thousands)

	Parent			Guarantors			Eliminations			Consolidated
Revenue:
Restaurant sales and operating revenue	$	221,316		$	84,519		–			$	305,835
Franchise revenue		25			1,523		–				1,548
		221,341			86,042		–				307,383
Operating costs and expenses:
Cost of merchandise		60,626			23,169		–				83,795
Payroll and related costs		74,802			30,562		–				105,364
Other restaurant operating costs		44,242			17,704		–				61,946
Depreciation		10,751			3,863		–				14,614
Selling, general, and administrative		19,747			10,529		–				30,276
Intercompany selling, general, and administrative allocations		16,761			(16,761	)	–			–
Closures and impairments		1,235			861		–				2,096
Equity in earnings of subsidiaries		(12,369	)	–				12,369		–
Interest expense, net		5,195			1,396		–				6,591
Intercompany interest expense/(income)		3,482			(3,482	)	–			–
		224,472			67,841			12,369			304,682
(Loss)/income from continuing operations before income taxes		(3,131	)		18,201			(12,369	)		2,701
(Benefit)/provision for income taxes from continuing operations		(7,847	)		5,832		–				(2,015	)
Income from continuing operations		4,716			12,369			(12,369	)		4,716
Loss from discontinued operations, net of tax		(2,520	)		(158	)		158			(2,520	)
Net income	$	2,196		$	12,211		$	(12,211	)	$	2,196
Other comprehensive income:
Pension liability reclassification, net of tax		380		–			–				380
Total comprehensive income	$	2,576		$	12,211		$	(12,211	)	$	2,576

Condensed Consolidating Statement of Operations and

Comprehensive (Loss)/Income

For the Thirty-Nine Weeks Ended March 5, 2013

(In thousands)

	Parent			Guarantors			Eliminations			Consolidated
Revenue:
Restaurant sales and operating revenue	$	675,501		$	255,198		–			$	930,699
Franchise revenue		159			4,525		–				4,684
		675,660			259,723		–				935,383
Operating costs and expenses:
Cost of merchandise		184,827			69,678		–				254,505
Payroll and related costs		222,481			90,806		–				313,287
Other restaurant operating costs		137,844			55,604		–				193,448
Depreciation		32,623			11,680		–				44,303
Selling, general, and administrative		73,737			38,086		–				111,823
Intercompany selling, general, and administrative allocations		51,245			(51,245	)	–			–
Closures and impairments		4,210			864		–				5,074
Equity in earnings of subsidiaries		(33,835	)	–				33,835		–
Interest expense, net		15,836			4,310		–				20,146
Gain on extinguishment of debt		(155	)	–			–				(155	)
Intercompany interest expense/(income)		10,304			(10,304	)	–			–
		699,117			209,479			33,835			942,431
(Loss)/income from continuing operations before income taxes		(23,457	)		50,244			(33,835	)		(7,048	)
(Benefit)/provision for income taxes from continuing operations		(27,043	)		16,409		–				(10,634	)
Income from continuing operations		3,586			33,835			(33,835	)		3,586
Loss from discontinued operations, net of tax		(13,859	)		(810	)		810			(13,859	)
Net income/(loss)	$	(10,273	)	$	33,025		$	(33,025	)	$	(10,273	)
Other comprehensive income:
Pension liability reclassification, net of tax		1,141		–			–				1,141
Total comprehensive income	$	(9,132	)	$	33,025		$	(33,025	)	$	(9,132	)

Condensed Consolidating Statement of Cash Flows

For the Thirty-Nine Weeks Ended March 4, 2014

(In thousands)

	Parent			Guarantors			Eliminations			Consolidated
Net cash (used)/provided by operating activities	$	(4,304	)	$	51,122		$	(17,664	)	$	29,154
Investing activities:
Purchases of property and equipment		(16,855	)		(5,702	)	–				(22,557	)
Proceeds from sale-leaseback transactions, net		5,637		–			–				5,637
Proceeds from disposal of assets		9,926			1,023		–				10,949
Other, net		842		–			–				842
Net cash used by investing activities		(450	)		(4,679	)	–				(5,129	)
Financing activities:
Principal payments on long-term debt		(12,958	)		(19,023	)	–				(31,981	)
Stock repurchases		(579	)	–			–				(579	)
Payments for debt issuance costs		(1,758	)	–			–				(1,758	)
Proceeds from exercise of stock options		1,576		–			–				1,576
Excess tax benefits from share-based compensation		284		–			–				284
Intercompany transactions		9,688			(27,352	)		17,664		–
Net cash used by financing activities		(3,747	)		(46,375	)		17,664			(32,458	)
(Decrease)/increase in cash and cash equivalents		(8,501	)		68		–				(8,433	)
Cash and cash equivalents:
Beginning of year		52,635			272		–				52,907
End of quarter	$	44,134		$	340		–			$	44,474

Condensed Consolidating Statement of Cash Flows

For the Thirty-Nine Weeks Ended March 5, 2013

(In thousands)

	Parent			Guarantors			Eliminations			Consolidated
Net cash (used)/provided by operating activities		(5,902	)	$	47,396		$	(26,040	)	$	15,454
Investing activities:
Purchases of property and equipment		(23,480	)		(4,253	)	–				(27,733	)
Proceeds from sale-leaseback transactions, net		38,872		–			–				38,872
Proceeds from disposal of assets		2,875			2,576		–				5,451
Other, net		416		–			–				416
Net cash provided/(used) by investing activities		18,683			(1,677	)	–				17,006
Financing activities:
Principal payments on long-term debt		(10,971	)		(9,329	)	–				(20,300	)
Stock repurchases		(30,149	)	–			–				(30,149	)
Proceeds from exercise of stock options		1,478		–			–				1,478
Excess tax benefits from share-based Compensation		87		–			–				87
Intercompany transactions		10,305			(36,345	)		26,040		–
Net cash used by financing activities		(29,250	)		(45,674	)		26,040			(48,884	)
Decrease in cash and cash equivalents		(16,469	)		45		–				(16,424	)
Cash and cash equivalents:
Beginning of year		47,986			198		–				48,184
End of quarter		31,517		$	243		–			$	31,760

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Note D - Discontinued Operations (Tables)

9 Months Ended

Mar. 04, 2014

Discontinued Operations and Disposal Groups [Abstract]

Schedule of Disposal Groups, Including Discontinued Operations, Income Statement, Balance Sheet and Additional Disclosures [Table Text Block]

	Thirteen weeks ended						Thirty-nine weeks ended
	March 4, 2014			March 5, 2013			March 4, 2014			March 5, 2013
Restaurant sales and operating revenue	$	–		$	2,421		$	–		$	11,575
Income/(loss) before income taxes	$	77		$	(4,405	)	$	2		$	(23,172	)
Benefit for income taxes		(9	)		(1,885	)		(95	)		(9,313	)
Income/(loss) from discontinued operations	$	86		$	(2,520	)	$	97		$	(13,859	)

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Note H - Long-Term Debt and Capital Leases (Details) - Long-term Debt and Capital Lease Obligations (USD $) In Thousands, unless otherwise specified	Mar. 04, 2014	Jun. 04, 2013	May 14, 2012
Debt Instrument [Line Items]
Mortgage loan obligations	$ 47,239	$ 66,883
Capital lease obligations	191	202
	266,873	299,002
Less current maturities	4,769	8,487
	262,104	290,515
Senior Notes [Member]
Debt Instrument [Line Items]
Senior unsecured notes	222,113	235,000
Unamortized discount	(2,670)	(3,083)	(3,700)
Senior unsecured notes less unamortized discount	$ 219,443	$ 231,917

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Note D - Discontinued Operations (Details) (USD $) In Millions, unless otherwise specified	3 Months Ended	12 Months Ended
	Mar. 04, 2014	Jun. 04, 2013 Marlin & Ray's [Member]	Jun. 04, 2013 Wok Hay [Member]	Jun. 04, 2013 Truffles [Member]	Mar. 04, 2014 Restaurants Closed [Member]	Jun. 04, 2013 Restaurants Closed [Member]
Note D - Discontinued Operations (Details) [Line Items]
Number of Restaurants Closed	24	13	1	2
Disposal Group, Including Discontinued Operation, Property, Plant, and Equipment, Net						$ 2.8
Assets Held-for-sale, Property, Plant and Equipment					$ 0.8	$ 4.2

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Condensed Consolidated Statements of Cash Flows (Unaudited) (USD $) In Thousands, unless otherwise specified	9 Months Ended
	Mar. 04, 2014	Mar. 05, 2013
Operating activities:
Net loss	$ (63,932)	$ (10,273)
Adjustments to reconcile net loss to net cash provided by operating activities:
Depreciation	41,451	45,199
Amortization of intangibles	1,933	2,562
Deferred income taxes	(312)	(25,358)
Loss on impairments, including disposition of assets	20,242	21,161
Trademark impairment	855
Loss/(gain) on extinguishment of debt	1,183	(155)
Share-based compensation expense	5,785	3,157
Excess tax benefits from share-based compensation	(284)	(87)
Lease reserve adjustments	4,549	3,003
Deferred escalating minimum rent	2,024	2,495
Other, net	4,009	(111)
Changes in operating assets and liabilities:
Receivables	(137)	(366)
Inventories	8,132	(4,250)
Income taxes	(2,341)	(1,490)
Prepaid and other assets	(204)	(1,662)
Accounts payable, accrued and other liabilities	6,201	(18,371)
Net cash provided by operating activities	29,154	15,454
Investing activities:
Purchases of property and equipment	(22,557)	(27,733)
Proceeds from sale-leaseback transactions, net	5,637	38,872
Proceeds from disposal of assets	10,949	5,451
Insurance proceeds from property claims	218
Reductions in Deferred Compensation Plan assets	770	788
Other, net	(146)	(372)
Net cash (used)/provided by investing activities	(5,129)	17,006
Financing activities:
Principal payments on long-term debt	(31,981)	(20,300)
Stock repurchases	(579)	(30,149)
Payments for debt issuance costs	(1,758)
Proceeds from exercise of stock options	1,576	1,478
Excess tax benefits from share-based compensation	284	87
Net cash used by financing activities	(32,458)	(48,884)
Decrease in cash and cash equivalents	(8,433)	(16,424)
Cash and cash equivalents:
Beginning of year	52,907	48,184
End of quarter	44,474	31,760
Cash paid for:
Interest, net of amount capitalized	13,191	14,275
Income taxes, net	1,513	3,892
Significant non-cash investing and financing activities:
Retirement of fully depreciated assets	34,090	49,190
Reclassification of properties to assets held for sale	$ 8,049	$ 9,624

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Note E - Accounts Receivable

9 Months Ended

Mar. 04, 2014

Receivables [Abstract]

Loans, Notes, Trade and Other Receivables Disclosure [Text Block]

NOTE E – ACCOUNTS RECEIVABLE

Accounts receivable – current consist of the following (in thousands):

	March 4, 2014		June 4, 2013
Rebates receivable	$	961	$	874
Amounts due from franchisees		1,294		917
Other receivables		2,789		3,043
	$	5,044	$	4,834

We negotiate purchase arrangements, including price terms, with designated and approved suppliers on behalf of us and our franchise system. We receive various volume discounts and rebates based on purchases for our Company-owned restaurants from numerous suppliers.

Amounts due from franchisees consist of royalties, license and other miscellaneous fees, a substantial portion of which represents current and recently-invoiced billings.

As of March 4, 2014 and June 4, 2013, Other receivables consisted primarily of amounts due for third-party gift card sales ($0.9 million and $1.8 million, respectively), amounts due from our distributor ($0.9 million and $0.4 million, respectively), amounts due from landlords ($0.1 million and $0.5 million, respectively), and sales and other miscellaneous tax refunds ($0.3 million and $0.1 million, respectively).

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Note L - Share-Based Employee Compensation (Details) (USD $)	3 Months Ended	9 Months Ended		3 Months Ended				3 Months Ended	9 Months Ended	3 Months Ended			9 Months Ended	3 Months Ended	9 Months Ended	3 Months Ended	9 Months Ended	3 Months Ended	9 Months Ended	3 Months Ended		3 Months Ended		9 Months Ended
	Sep. 03, 2013	Mar. 04, 2014	Mar. 05, 2013	Sep. 03, 2013 Cliff Vest [Member] Restricted Stock, Service-based [Member] SIP and 1996 SIP [Member]	Sep. 03, 2013 Annual Installments [Member] Restricted Stock, Service-based [Member] SIP and 1996 SIP [Member]	Mar. 04, 2014 Employee Stock Option [Member] SIP [Member]	Mar. 04, 2014 Employee Stock Option [Member] SIP 1996 [Member]	Dec. 03, 2013 Employee Stock Option [Member] SIP and Directors' Plan [Member]	Mar. 04, 2014 Employee Stock Option [Member]	Sep. 03, 2013 Restricted Stock [Member] SIP and 1996 SIP [Member]	Dec. 03, 2013 Restricted Stock [Member] SIP and Directors' Plan [Member]	Sep. 03, 2013 Restricted Stock [Member] Chief Executive Officer [Member]	Mar. 04, 2014 Restricted Stock [Member]	Sep. 03, 2013 Restricted Stock, Service-based [Member] SIP and 1996 SIP [Member]	Mar. 04, 2014 Restricted Stock, Service-based [Member]	Sep. 03, 2013 Restricted Stock, Performance-based [Member]	Mar. 04, 2014 Restricted Stock, Performance-based [Member]	Sep. 03, 2013 SIP and 1996 SIP [Member] Certain Employees [Member]	Mar. 04, 2014 SIP and 1996 SIP [Member]	Sep. 03, 2013 SIP [Member] Certain Employees [Member]	Mar. 04, 2014 SIP [Member]	Sep. 03, 2013 SIP [Member] Maximum [Member] Certain Employees [Member]	Mar. 04, 2014 SIP 1996 [Member]	Mar. 04, 2014 Accelerated Vesting Options [Member]
Note L - Share-Based Employee Compensation (Details) [Line Items]
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period				2 years 6 months				1 year											3 years	3 years
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Expected Term																		7 years	7 years			7 years
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Authorized						4,849,000	143,000
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Number																					1,861,000		77,000
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Available for Grant						2,988,000	66,000
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized (in Dollars)									$ 3,200,000				$ 4,900,000
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized, Period for Recognition									1 year 219 days				1 year 146 days
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross											60,000							601,000		570,000
Share-based Compensation Arrangement by Share Based Payment Award, Benchmark Price Per Share (in Dollars per share)	$ 14
Consecutive Days to Vest	20 days
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period				186,000	158,000									344,000	423,000
Number of Annual Installments														3
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Forfeited in Period										235,000		34,000			140,000	(269,000)	270,000
Share-based Compensation (in Dollars)		$ 5,785,000	$ 3,157,000																					$ 300,000

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Note O - Fair Value Measurements (Details) - Carrying Amounts and Fair Values of Other Financial Instruments Not Measured on a Recurring Basis (USD $) In Thousands, unless otherwise specified	Mar. 04, 2014	Jun. 04, 2013
Carrying Amounts and Fair Values of Other Financial Instruments Not Measured on a Recurring Basis [Abstract]
Long-term debt and capital leases	$ 266,873	$ 299,002
Long-term debt and capital leases	248,214	310,441
Letters of credit	$ 405	$ 270

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Note E - Accounts Receivable (Tables)

9 Months Ended

Mar. 04, 2014

Receivables [Abstract]

Schedule of Accounts, Notes, Loans and Financing Receivable [Table Text Block]

	March 4, 2014		June 4, 2013
Rebates receivable	$	961	$	874
Amounts due from franchisees		1,294		917
Other receivables		2,789		3,043
	$	5,044	$	4,834

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Note B - (Loss)/Earnings Per Share and Stock Repurchases (Details) - Weighted-average Common and Dilutive Potential Common Shares Outstanding (USD $) In Thousands, except Per Share data, unless otherwise specified	3 Months Ended		9 Months Ended
	Mar. 04, 2014	Mar. 05, 2013	Mar. 04, 2014	Mar. 05, 2013
Weighted-average Common and Dilutive Potential Common Shares Outstanding [Abstract]
(Loss)/income from continuing operations (in Dollars)	$ (7,393)	$ 4,716	$ (64,029)	$ 3,586
Income/(loss) from discontinued operations, net of tax (in Dollars)	86	(2,520)	97	(13,859)
Net (loss)/income (in Dollars)	$ (7,307)	$ 2,196	$ (63,932)	$ (10,273)
Weighted-average common shares outstanding (in Shares)	60,351	59,778	60,191	61,532
Dilutive effect of stock options and restricted stock (in Shares)		534		454
Weighted average common and dilutive potential common shares outstanding (in Shares)	60,351	60,312	60,191	61,986
(Loss)/income from continuing operations	$ (0.12)	$ 0.08	$ (1.06)	$ 0.06
Income/(loss) from discontinued operations	$ 0.00	$ (0.04)	$ 0.00	$ (0.23)
Net (loss)/income per share	$ (0.12)	$ 0.04	$ (1.06)	$ (0.17)
(Loss)/income from continuing operations	$ (0.12)	$ 0.08	$ (1.06)	$ 0.06
Income/(loss) from discontinued operations	$ 0.00	$ (0.04)	$ 0.00	$ (0.22)
Net (loss)/income per share	$ (0.12)	$ 0.04	$ (1.06)	$ (0.16)

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Note O - Fair Value Measurements

9 Months Ended

Mar. 04, 2014

Fair Value Disclosures [Abstract]

Fair Value Disclosures [Text Block]

NOTE O – FAIR VALUE MEASUREMENTS

The following table presents the fair values of our financial assets and liabilities measured at fair value on a recurring basis and the level within the fair value hierarchy in which the measurements fall (in thousands):

	Level		March 4, 2014			June 4, 2013
Deferred compensation plan: other investments – Assets		1	$	9,006		$	8,721
Deferred compensation plan: other investments – Liabilities		1		(9,006	)		(8,721	)
Deferred compensation plan: RTI common stock – Equity		1		500			1,094
Deferred compensation plan: RTI common stock – Equity		1		(500	)		(1,094	)
Total			–			–

During the 39 weeks ended March 4, 2014 there were no transfers among levels within the fair value hierarchy.

The Ruby Tuesday, Inc. 2005 Deferred Compensation Plan (the “Deferred Compensation Plan”) and the Ruby Tuesday, Inc. Restated Deferred Compensation Plan (the “Predecessor Plan”) are unfunded, non-qualified deferred compensation plans for eligible employees. Assets earmarked to pay benefits under the Deferred Compensation Plan and Predecessor Plan are held by a rabbi trust. We report the accounts of the rabbi trust in our Condensed Consolidated Financial Statements. The investments held by these plans are reported at fair value based on third-party broker statements. The realized and unrealized holding gains and losses related to these investments, as well as the offsetting compensation expense, is recorded in Selling, general and administrative expense in the Condensed Consolidated Financial Statements.

The following table presents the fair values for those assets and liabilities measured on a non-recurring basis and remaining on our Condensed Consolidated Balance Sheets as of March 4, 2014 and June 4, 2013 (in thousands):

	Fair Value Measurements
	Level		March 4, 2014		June 4, 2013
Long-lived assets held for sale *		2	$	23,299	$	24,006
Long-lived assets held for use		2		7,992		5,802
Total			$	31,291	$	29,808

* Included in the carrying value of long-lived assets held for sale as of March 4, 2014 and June 4, 2013 are $16.7 million and $14.8 million, respectively, of assets included in Construction in progress in the Condensed Consolidated Balance Sheets as we do not expect to sell these assets within the next 12 months.

The following table presents the losses recognized during the 13 and 39 weeks ended March 4, 2014 and March 5, 2013 resulting from fair value measurements of assets and liabilities measured on a non-recurring basis. The losses associated with continuing operations are included in Closures and impairments, net and the losses associated with discontinued operations are included in Loss from discontinued operations in our Condensed Consolidated Statements of Operations and Comprehensive (Loss)/Income (in thousands):

	Thirteen weeks ended				Thirty-nine weeks ended
	March 4, 2014		March 5, 2013		March 4, 2014		March 5, 2013
Included within continuing operations
Long-lived assets held for sale	$	142	$	543	$	726	$	1,054
Long-lived assets held for use		3,621	–			20,285		2,149
	$	3,763	$	543	$	21,011	$	3,203
Included within discontinued operations	$	25	$	1,669	$	178	$	17,971

Long-lived assets held for sale are valued using Level 2 inputs, primarily representing information obtained through broker listings and sales agreements. Costs to market and/or sell the assets are factored into the estimates of fair value for those assets included in Assets held for sale on our Condensed Consolidated Balance Sheets.

We review our long-lived assets (primarily property, equipment, and, as appropriate, reacquired franchise rights and favorable leases) related to each restaurant to be held and used in the business, whenever events or changes in circumstances indicate that the carrying amount of the long-lived asset may not be recoverable.

Long-lived assets held for use presented in the table above include restaurants or groups of restaurants that we have impaired. From time to time, this will also include closed restaurants or surplus sites that do not meet the held for sale criteria that we have offered for sale at a price less than carrying value.

The Level 2 fair values of our long-lived assets held for use are based on broker estimates of the value of the land, building, leasehold improvements, and other residual assets.

Our financial instruments at March 4, 2014 and June 4, 2013 consisted of cash and cash equivalents, accounts receivable and payable, long-term debt, and letters of credit. The fair values of cash and cash equivalents and accounts receivable and payable approximated carrying value because of the short-term nature of these instruments. The carrying amounts and fair values of our other financial instruments not measured on a recurring basis using fair value, however subject to fair value disclosures, are as follows (in thousands):

	March 4, 2014				June 4, 2013
	Carrying Amount		Fair Value		Carrying Amount		Fair Value
Long-term debt and capital leases	$	266,873	$	248,214	$	299,002	$	310,441
Letters of credit	–			405	–			270

We estimated the fair value of debt and letters of credit using market quotes and present value calculations based on market rates.