U.S.

Research
Published by Raymond James & Associates

Please read domestic and foreign disclosure/risk information beginning on page 6 and Analyst Certification on page 6.

2014 Raymond James & Associates, Inc., member New York Stock Exchange/SIPC. All rights reserved.
International Headquarters: The Raymond James Financial Center
|
880 Carillon Parkway
|
St. Petersburg, Florida 33716
|
800-248-8863

Ruby Tuesday, Inc.
July 30, 2014
(RT-NYSE) Company Comment
Bryan C. Elliott, CFA, (404) 442-5856, Bryan.Elliott@RaymondJames.com
Brian M. Vaccaro, CFA, (404) 442-5866, Brian.Vaccaro@RaymondJames.com

Restaurants _________________________________________________________

Trends Stable But at Very Low Level; Visibility Low; Reiterate Underperform

Recommendation: We reiterate our Underperform rating on RT following another
disappointing quarter. Comp sales were close to flat, and guidance was very disappointing as
well management guided to flattish comps in the current quarter and limited comp and
margin gains for the new fiscal year. Ruby Tuesday has seen its average annual sales volumes
fall from $2.2 million to $1.6 million over the past 10 years. This has eroded profitability
such that operating cash flow has fallen from a peak of $204 million to less than $40 million
in the just concluded FY14. A substantial recovery in comp store sales seems necessary to
create a material rebound in cash flow. Despite substantial menu and atmosphere changes,
and despite spending almost $70 million on advertising in FY14, comp store sales fell over 5%
for the fiscal year and barely grew (+0.4%) in F4Q14, the chains seasonally strongest quarter.
While stock bulls believe the companys owned real estate (~300 units fee simple) has an average
value of over $1.5 million per owned site, management plans to sell up to 14 units in FY15 at
an average price of ~$1 million, right in line with our long-standing estimate of average value.
Event: F4Q14 operating EPS of $0.03 was well below Street estimates in the low teens.
Revenue fell $8.8 million to $307 million as comp sales rose 0.4% after the closure of 40
company units in FY14. The EBIT margin was relatively flat at 4.9%. For the year, comps
fell over 5% and EBITDA fell from $97 million to $55 million.
Analysis: The comp sales gain of 0.4% was the first positive comp quarter in the last six.
Store margins rose 70 bp (mostly on supply chain cost-savings initiatives). SG&A rose
$2.8 million to $29.8 million (timing of advertising). This held the EBIT margin gain at 10
bp to 4.9%. For the full fiscal year, total revenue fell 6.6%, total restaurant cash flow fell
22%, and EBITDA fell 43% to $55.5 million. After depreciation and non-cash stock comp
expense, EBIT was a loss of $7.7 million. After interest and impairments, we estimate
Ruby lost $32.6 million before taxes in FY14 on an operating basis. GAAP EPS was a loss
of $1.07, which equates to a GAAP net loss of $64.3 million.
Estimates: For FY15 our operating EPS loss estimate is going to $(0.27) from $(0.16). For
FY16 our operating EPS loss estimate is going to $(0.20) from $(0.06).
Valuation: At its closing price RT has a forward EV/EBITDA multiple of 11.0x on our new FY15
EBITDA estimate of $59.2 million , which is well above the 6-7x levels typically seen by
troubled casual dining stocks. We believe this premium reflects investors belief that the
companys real estate value is ~$450 million (or $1.5 million per owned site). We believe the
value is $1 million on average, which is what the company expects to generate on its next
dozen or so site sales this coming year.
Non-GAAP Q1 Q2 Q3 Q4 Full GAAP EPS Revenues
EPS Aug Nov Feb May Year Full Year (mil.)
2013A $0.05 $(0.07) $0.08 $0.08 $0.14 $(0.38) $1,251
Old 2014E (0.34)A (0.43)A (0.07)A 0.12 (0.72) (0.50) 1,169
New 2014A (0.34) (0.43) (0.07) 0.03 (0.81) (1.07) 1,169
Old 2015E (0.13) (0.19) 0.03 0.12 (0.16) (0.16) 1,154
New 2015E (0.16) (0.19) (0.02) 0.10 (0.27) (0.27) 1,142
Old 2016E (0.11) (0.15) 0.06 0.14 (0.06) (0.06) 1,168
New 2016E (0.16) (0.16) 0.00 0.12 (0.20) (0.20) 1,150
Rows may not add due to rounding. Non-GAAP EPS exclude one-time charges and reflect reported historical
results from continuing operations.
Rating _________________________________
Underperform 4

Current and Target Price __________________
Current Price (Jul-29-14) $7.11
Target Price: NM
52-Week Range $8.22 - $5.14
Suitability Not Meaningful

Market Data ____________________________
Shares Out. (mil.) 60.3
Market Cap. (mil.) $429
Avg. Daily Vol. (10 day) 467,650
Dividend/Yield $0.00/0.0%
Book Value (Jun-14) $7.54
ROE % 0%
Total Debt (mil.)/% Cap. $259/36%

Earnings & Valuation Metrics ______________
2013A 2014A 2015E 2016E
P/E Ratios (Non-GAAP)
50.8x NM NM NM
Operating Margins
2.3% -0.7% 0.1% 0.6%
EBITDA (mil.)
Old $97 $55 $68 $75
New $97 $55 $59 $64
Non-GAAP EPS (CY)
2013A 2014E 2015E 2016E
Old $(0.61) $(0.28) $(0.10) NA
New $(0.61) $(0.39) $(0.26) NA
P/E Ratios (CY Non-GAAP)
NM NM NM NM

Company Description ____________________
Ruby Tuesday, Inc., headquartered in Maryville,
Tennessee, hired a new CEO (late 2012) and is in the
early stages of a broad-brand repositioning that has
yet to gain much traction. The company does have
significant real estate assets, owning the land and
building at ~300 units.


Raymond James U.S. Research
2014 Raymond James & Associates, Inc., member New York Stock Exchange/SIPC. All rights reserved.
International Headquarters: The Raymond James Financial Center
|
880 Carillon Parkway
|
St. Petersburg, Florida 33716
|
800-248-8863 2


RT EPS Reconciliation F4Q:14 F4Q:14 F4Q:13
Reported RJ Est. Actual - RJ Est. Reported Current - Prior Yr.
SSS - Company 0.4% 0.0% 0.4% -3.1%
SSS - Franchise 4.9% -1.0% 5.9% -5.1%
Company Restaurant Sales 305,648 $ 306,484 $ (836) $ 314,527 $ (8,879) $
Franchise Income 1,663 1,525 138 1,577 86
Total Revenues 307,311 $ 308,009 $ (698) $ 316,104 $ (8,793) $
Food, Beverage, & Retail Costs 82,934 27.1% 83,250 27.2% (316) 87,007 27.7% (4,073)
Labor & Other (Incl Stk Based Comp) 102,778 33.6% 102,905 33.6% (127) 106,392 33.8% (3,614)
Other Store Operating Expenses 63,463 20.8% 64,196 20.9% (733) 65,566 20.8% (2,103)
Store-Level Cash Flow 56,473 18.5% 56,133 18.3% 340 55,562 17.7% 911
Reported SG&A Expenses (Incl Stk-Based Comp) 29,765 9.7% 30,000 9.7% (235) 26,959 8.5% 2,806
Stock Based Comp (90% in SG&A, 10% in Labor) 1,324 1,324 - 1,324 -
Equity in earnings (loss) of unconsol fran. - - - - -
EBITDA (ex-stock based comp.) 29,695 9.7% 28,982 9.4% 713 31,504 10.0% (1,809)
Ongoing Depreciation & Amort. 13,377 13,277 100 14,819 (1,442)
Closures and Impairments - 3,000 (3,000) 9,582 (9,582)
Stock Based Compensation 1,324 1,324 - 1,324 -
Operating Income 14,994 4.9% 14,381 4.7% 613 15,309 4.8% (315)
Interest Income (Expense), net (5,605) (5,600) (5) (6,555) 950
Pre-Tax Income 9,389 8,781 608 8,754 635
Income taxes (rate) 7,379 1,756 5,623 3,889 3,490
Net Income From Operations 2,010 7,025 (5,015) 4,865 (2,855)
Avg. Shares Outstanding 60,353 60,549 (196) 59,564 789
Diluted EPS From Operations 0.03 $ 0.12 $ (0.08) $ 0.08 $ (0.05) $


Raymond James U.S. Research
2014 Raymond James & Associates, Inc., member New York Stock Exchange/SIPC. All rights reserved.
International Headquarters: The Raymond James Financial Center
|
880 Carillon Parkway
|
St. Petersburg, Florida 33716
|
800-248-8863 3
RT Condensed Cash Flow Statement ($000's)
FY-2011 FY-2012 FY-2013 FY-2014 FY-2015(E) FY-2016(E)
Net Income from Operations $47,673 $18,889 $9,461 ($48,578) ($16,474) ($12,373)
Depreciation & Amortization 62,878 65,297 60,018 54,828 52,008 50,608
Stock Based Compensation 7,863 5,914 4,481 7,109 6,264 6,264
Other Operating Cash Flow (Net) 689 (4,283) (14,187) 15,842 (4,420) (1,920)
Gross Cash Flow 119,103 85,817 59,773 29,201 37,378 42,579
Net Change In Working Capital (2,811) 26,434 (23,819) 19,500 5,000 -
Cash Flow from Operations 116,292 112,251 35,954 48,701 42,378 42,579
New Unit Capex (6,684) (20,466) (19,617) (6,800) (7,000) (4,000)
Maintenance and Other Capex (20,000) (17,500) (17,500) (23,000) (23,000) (23,000)
Total Capital Spending (26,684) (37,966) (37,117) (29,800) (30,000) (27,000)
Free Cash Flow 89,608 74,285 (1,163) 18,901 12,378 15,579
FCF Per Share 0.31 $ 0.20 $ 0.25 $
Proceeds from Asset Sales 6,741 5,994 6,997 15,400 10,000 -
Proceeds from S/L Transactions 21,150 51,765 5,900 - -
Other Investing (5,084) (23,177) (372) (28) (400) (400)
Net Borrowing (Paydown) LT Debt (91,337) (16,217) (27,180) (40,200) (20,000) (20,000)
Share Repurchases - (18,441) (30,278) (579) - -
Dividends Paid - - - - - -
Options Exercise and Other Net Cash Flow 225 (5,132) 4,954 952 320 320
Net Change In Cash and Investments 153 38,462 4,723 346 2,298 (4,501)
Ending Cash and Investments 9,723 48,185 52,908 53,254 55,552 51,051
Current Enterprise Value 651,494 651,494 651,494 651,494 651,494 651,494
EBITDA 141,842 120,396 96,981 55,457 59,229 64,142
Current EV/EBITDA @ $7.11 per share 11.7x 11.0x 10.2x
Ending Total Balance Sheet Debt $344,274 $326,663 $299,002 $258,654 $238,654 $218,654
Total Borrowings/EBITDA 2.4x 2.7x 3.1x 4.7x 4.0x 3.4x
Economic Debt/EBITDAR 3.2x 3.0x 3.4x 4.3x 4.0x 3.7x
Definitions and Footnotes
RT FY ends are 5/31/11, 6/5/12 (extra week), 6/4/13, 6/3/14, 6/2/15, 5/31/16
Source: Company Filings and Raymond James estimates



Raymond James U.S. Research
2014 Raymond James & Associates, Inc., member New York Stock Exchange/SIPC. All rights reserved.

International Headquarters: The Raymond James Financial Center | 880 Carillon Parkway | St. Petersburg, Florida 33716 | 800-248-8863 4
RUBY TUESDAY, INC. Bryan C. Elliott, CFA Brian M. Vaccaro, CFA 7/29/2014
Earnings Model - ($ Thousands) (404) 442-5856 (404) 442-5866
Q1-14 Q2-14 Q3-14 Q4-14 Q1-15(E) Q2-15(E) Q3-15(E) Q4-15(E) Q1-16(E) Q2-16(E) Q3-16(E) Q4-16(E)
FY-2013 9/3/2013 12/3/2013 3/4/2014 6/3/2014 FY-2014 9/2/2014 12/2/2014 3/3/2015 6/2/2015 FY-2015(E) 9/1/2015 12/1/2015 3/1/2016 5/31/2016 FY-2016(E)
Revenue
Company Restaurant Sales 1,245,226 $ 288,092 $ 274,719 $ 293,964 $ 305,648 $ 1,162,423 $ 277,672 $ 266,808 $ 285,011 $ 305,917 $ 1,135,407 $ 279,723 $ 268,573 $ 287,306 $ 308,596 $ 1,144,199 $
Franchise Income 6,261 1,582 1,490 1,588 1,663 6,323 1,575 1,500 1,500 1,525 6,100 1,599 1,523 1,523 1,548 6,192
Total Revenues 1,251,487 289,674 276,209 295,552 307,311 1,168,746 279,247 268,308 286,511 307,442 1,141,507 281,322 270,096 288,828 310,144 1,150,390
Food, Beverage, & Retail Costs 341,512 79,938 77,669 80,980 82,934 321,521 75,658 73,431 77,089 83,007 309,185 75,938 73,649 77,422 83,425 310,434
Labor & Other (Incl Stk Based Comp) 419,679 102,733 97,517 101,351 102,778 404,379 99,434 95,109 98,549 103,174 396,266 99,889 95,470 99,055 103,769 398,183
Other Store Operating Expenses 259,014 67,534 65,289 64,161 63,463 260,447 64,814 63,142 61,922 63,213 253,090 65,013 63,291 62,133 63,458 253,895
Store-Level Cash Flow $225,021 $37,887 $34,244 $47,472 $56,473 $176,076 $37,766 $35,125 $47,451 $56,523 $176,865 $38,884 $36,164 $48,695 $57,944 $181,687
Reported SG&A Expenses (Incl Stk-Based Comp) 138,782 37,015 34,531 32,740 29,765 134,051 32,500 32,500 32,500 32,500 130,000 32,500 32,500 32,500 32,500 130,000
Stock Based Comp (90% in SG&A, 10% in Labor) 4,481 1,704 2,345 1,736 1,324 7,109 1,704 1,500 1,736 1,324 6,264 1,704 1,500 1,736 1,324 6,264
Equity in earnings (loss) of unconsol f ran. - - - - - - - - - - - - - - - -
EBITDA (ex-stock based comp.) $96,981 $4,158 $3,548 $18,056 $29,695 $55,457 $8,545 $5,625 $18,187 $26,872 $59,229 $9,687 $6,686 $19,454 $28,315 $64,142
Ongoing Depreciation & Amort. 59,122 14,209 13,915 13,327 13,377 54,828 13,227 13,077 12,927 12,777 52,008 12,727 12,677 12,627 12,577 50,608
Extra Depreciation Impact f romRemodels 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0
Stock Based Compensation $4,481 $1,704 $2,345 $1,736 $1,324 $7,109 $1,704 $1,500 $1,736 $1,324 $6,264 $1,704 $1,500 $1,736 $1,324 $6,264
Operating Income (Post-Options) $28,823 ($12,266) ($13,384) $2,993 $14,994 ($7,663) ($6,386) ($8,952) $3,524 $12,771 $957 ($4,744) ($7,491) $5,091 $14,414 $7,270
Interest Income (Expense), net (27,117) (6,753) (6,620) (5,967) (5,605) (24,945) (5,500) (5,425) (5,350) (5,275) (21,550) (5,175) (5,100) (5,025) (4,950) (20,250)
Pre-Tax Income $1,706 ($19,019) ($20,004) ($2,974) $9,389 ($32,608) ($11,886) ($14,377) ($1,826) $7,496 ($20,593) ($9,919) ($12,591) $66 $9,464 ($12,980)
Income taxes (6,745) 1,170 5,911 1,510 7,379 15,966 (2,377) (2,875) (365) 1,499 (4,119) 5 (2,518) 13 1,893 (607)
Net Income From Operations $8,451 ($20,189) ($25,915) ($4,484) $2,010 ($48,574) ($9,509) ($11,501) ($1,461) $5,997 ($16,474) ($9,924) ($10,073) $53 $7,572 ($12,373)
Avg. Shares Outstanding 61,040 60,026 60,196 60,351 60,353 60,231 60,553 60,753 60,953 61,153 60,853 61,353 61,553 61,753 61,953 61,653
Fully Diluted Operating EPS 0.14 $ (0.34) $ (0.43) $ (0.07) $ 0.03 $ (0.81) $ (0.16) $ (0.19) $ (0.02) $ 0.10 $ (0.27) $ (0.16) $ (0.16) $ 0.00 $ 0.12 $ (0.20) $
Margin Analysis
Food, Beverage, & Retail (% of Rest. Sales) 27.4% 27.7% 28.3% 27.5% 27.1% 27.7% 27.2% 27.5% 27.0% 27.1% 27.2% 27.1% 27.4% 26.9% 27.0% 27.1%
Labor Costs (% of Rest. Sales) 33.7% 35.7% 35.5% 34.5% 33.6% 34.8% 35.8% 35.6% 34.6% 33.7% 34.9% 35.7% 35.5% 34.5% 33.6% 34.8%
Rest. Operating Exp. (% of Rest. Sales) 20.8% 23.4% 23.8% 21.8% 20.8% 22.4% 23.3% 23.7% 21.7% 20.7% 22.3% 23.2% 23.6% 21.6% 20.6% 22.2%
Store Level CFMargin 18.1% 13.2% 12.5% 16.1% 18.5% 15.1% 13.6% 13.2% 16.6% 18.5% 15.6% 13.9% 13.5% 16.9% 18.8% 15.9%
Cash SG&A(% of Tot. Revs) 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0%
Fran SG&A% of Total Fran Retail Sls 0.0% 0.1% 0.1% 0.1% 0.1% 0.1% 0.1% 0.1% 0.1% 0.1% 0.1% 0.1% 0.1% 0.1% 0.1% 0.1%
Reported SG&A(%of Tot. Revs) 11.1% 12.8% 12.5% 11.1% 9.7% 11.5% 11.6% 12.1% 11.3% 10.6% 11.4% 11.6% 12.0% 11.3% 10.5% 11.3%
Stock Based Comp.
EBITDAMargin 7.7% 1.4% 1.3% 6.1% 9.7% 4.7% 3.1% 2.1% 6.3% 8.7% 5.2% 3.4% 2.5% 6.7% 9.1% 5.6%
Depreciation Expense (% of Tot. Revs) 4.7% 4.9% 5.0% 4.5% 4.4% 4.7% 4.7% 4.9% 4.5% 4.2% 4.6% 4.5% 4.7% 4.4% 4.1% 4.4%
Accel. Depreciation of Remodels (% of Tot. Revs.) 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0%
Stock Based Comp. (% of Tot. Revs) 0.4% 0.6% 0.8% 0.6% 0.4% 0.6% 0.6% 0.6% 0.6% 0.4% 0.5% 0.6% 0.6% 0.6% 0.4% 0.5%
Operating Margin (Post-Options) 2.3% -4.2% -4.8% 1.0% 4.9% -0.7% -2.3% -3.3% 1.2% 4.2% 0.1% -1.7% -2.8% 1.8% 4.6% 0.6%
Pre-Tax Margin 0.1% -6.6% -7.2% -1.0% 3.1% -2.8% -4.3% -5.4% -0.6% 2.4% -1.8% -3.5% -4.7% 0.0% 3.1% -1.1%
Effective Tax Rate -395.4% -6.2% -29.5% -50.8% 78.6% -49.0% 20.0% 20.0% 20.0% 20.0% 20.0% -0.1% 20.0% 20.0% 20.0% 4.7%
Year/Year Margin Changes (in basis points)
Food, Beverage, & Retail (% of Rest. Sales) (140) 82 53 15 (53) 24 (50) (75) (50) 0 (44) (10) (10) (10) (10) (10)
Labor Costs (% of Rest. Sales) (10) 281 176 3 (20) 110 15 15 10 10 13 (10) (10) (10) (10) (10)
Rest. Operating Exp. (% of Rest. Sales) 68 326 178 157 (8) 163 (10) (10) (10) (10) (10) (10) (10) (10) (10) (10)
Store Level Profit Margin 93 (688) (407) (175) 81 (292) 45 70 50 0 43 30 30 30 30 30
EBITDAMargin (ex-stock based comp.) (133) (614) (307) (285) (30) (300) 162 81 24 (92) 44 38 38 39 39 39
Total Depreciation Expense (% of Tot. Revs) (20) 491 504 451 (34) (3) (17) (16) 0 (20) (14) (21) (18) (14) (10) (16)
Stock Based Comp. (% of Tot. Revs) (9) 33 60 8 1 25 2 (29) 2 (0) (6) (0) (0) (0) (0) (0)
Operating Margin (Post-Options) (103) (665) (362) (201) 4 (296) 195 151 22 (73) 74 60 56 53 49 55
Pretax Margn (178) (691) (362) (188) 29 (293) 231 188 37 (62) 99 73 70 66 61 68
Growth Rates
Ruby Tuesday Systemwide Store Count -1.3% -1.5% -0.9% -3.9% -4.6% -4.6% -4.1% -4.5% -1.7% -0.7% -0.7% -0.9% -1.1% -1.2% -1.6% -1.6%
Ruby Tuesday Systemwide Retail Sales -5.2% -12.8% -9.1% -3.8% -1.9% -7.0% -2.4% -2.0% -2.0% 0.8% -1.4% 1.3% 1.1% 0.9% 0.5% 0.9%
Ruby Tuesday Co. Owned Retail Sales -5.7% -11.7% -8.0% -3.9% -2.8% -6.6% -3.6% -2.9% -3.0% 0.1% -2.3% 0.7% 0.7% 0.8% 0.9% 0.8%
Franchise Revenue 9.1% -4.5% 0.7% 2.6% 5.5% 1.0% -0.4% 0.7% -5.5% -8.3% -3.5% 1.5% 1.5% 1.5% 1.5% 1.5%
Total Revenues -5.6% -11.7% -8.0% -3.8% -2.8% -6.6% -3.6% -2.9% -3.1% 0.0% -2.3% 0.7% 0.7% 0.8% 0.9% 0.8%
Restaurant Cash Flow -0.6% -42.0% -30.6% -13.3% 1.6% -21.8% -0.3% 2.6% 0.0% 0.1% 0.4% 3.0% 3.0% 2.6% 2.5% 2.7%
Reported SG&AExpenses 18.0% -13.9% -10.4% 8.1% 10.4% -3.4% -12.2% -5.9% -0.7% 9.2% -3.0% 0.0% 0.0% 0.0% 0.0% 0.0%
EBITDA -19.4% -83.3% -72.9% -34.5% -5.7% -42.8% 105.5% 58.6% 0.7% -9.5% 6.8% 13.4% 18.9% 7.0% 5.4% 8.3%
Operating Income - Fully Comparable -33.5% -220.6% 276.9% -56.4% -1.9% -101.7% -55.7% -32.5% 11.2% -13.6% -1403.5% -35.1% -19.6% 29.8% 11.7% 87.4%
Operating EPS -66.5% -788.8% 535.0% -195.0% -59.2% -682.5% -53.3% -56.0% -67.7% 194.4% -66.4% 3.0% -13.6% -103.6% 24.6% -25.9%
Same-Store Sales
Ruby Tuesday Company Owned -1.0% -11.4% -7.8% -1.9% 0.4% -5.0% 0.0% 1.0% 1.0% 2.0% 1.0% 2.0% 2.0% 2.0% 2.0% 2.0%
Ruby Tuesday Franchised -2.1% -8.4% -5.3% -2.2% 4.9% -2.6% 2.0% 0.0% 1.0% 1.0% 1.0% 2.0% 2.0% 2.0% 2.0% 2.0%

Raymond James U.S. Research
2014 Raymond James & Associates, Inc., member New York Stock Exchange/SIPC. All rights reserved.
International Headquarters: The Raymond James Financial Center
|
880 Carillon Parkway
|
St. Petersburg, Florida 33716
|
800-248-8863 5
Important Investor Disclosures
Raymond James & Associates (RJA) is a FINRA member firm and is responsible for the preparation and distribution of research created in
the United States. Raymond James & Associates is located at The Raymond James Financial Center, 880 Carillon Parkway, St. Petersburg,
FL 33716, (727) 567-1000. Non-U.S. affiliates, which are not FINRA member firms, include the following entities which are responsible for
the creation and distribution of research in their respective areas; In Canada, Raymond James Ltd. (RJL), Suite 2100, 925 West Georgia
Street, Vancouver, BC V6C 3L2, (604) 659-8200; In Latin America, Raymond James Latin America (RJLatAm), Ruta 8, km 17, 500, 91600
Montevideo, Uruguay, 00598 2 518 2033; In Europe, Raymond James Euro Equities, SAS (RJEE), 40, rue La Boetie, 75008, Paris, France,
+33 1 45 61 64 90.
This document is not directed to, or intended for distribution to or use by, any person or entity that is a citizen or resident of or located in
any locality, state, country, or other jurisdiction where such distribution, publication, availability or use would be contrary to law or
regulation. The securities discussed in this document may not be eligible for sale in some jurisdictions. This research is not an offer to sell
or the solicitation of an offer to buy any security in any jurisdiction where such an offer or solicitation would be illegal. It does not
constitute a personal recommendation or take into account the particular investment objectives, financial situations, or needs of
individual clients. Past performance is not a guide to future performance, future returns are not guaranteed, and a loss of original capital
may occur. Investors should consider this report as only a single factor in making their investment decision.
For clients in the United States: Any foreign securities discussed in this report are generally not eligible for sale in the U.S. unless they are
listed on a U.S. exchange. This report is being provided to you for informational purposes only and does not represent a solicitation for the
purchase or sale of a security in any state where such a solicitation would be illegal. Investing in securities of issuers organized outside of the
U.S., including ADRs, may entail certain risks. The securities of non-U.S. issuers may not be registered with, nor be subject to the reporting
requirements of, the U.S. Securities and Exchange Commission. There may be limited information available on such securities. Investors who
have received this report may be prohibited in certain states or other jurisdictions from purchasing the securities mentioned in this report.
Please ask your Financial Advisor for additional details and to determine if a particular security is eligible for purchase in your state.
The information provided is as of the date above and subject to change, and it should not be deemed a recommendation to buy or sell
any security. Certain information has been obtained from third-party sources we consider reliable, but we do not guarantee that such
information is accurate or complete. Persons within the Raymond James family of companies may have information that is not available
to the contributors of the information contained in this publication. Raymond James, including affiliates and employees, may execute
transactions in the securities listed in this publication that may not be consistent with the ratings appearing in this publication.
Additional information is available on request.

Analyst Information
Registration of Non-U.S. Analysts: The analysts listed on the front of this report who are not employees of Raymond James & Associates,
Inc., are not registered/qualified as research analysts under FINRA rules, are not associated persons of Raymond James & Associates, Inc.,
and are not subject to NASD Rule 2711 and NYSE Rule 472 restrictions on communications with covered companies, public companies,
and trading securities held by a research analyst account.
Analyst Holdings and Compensation: Equity analysts and their staffs at Raymond James are compensated based on a salary and bonus
system. Several factors enter into the bonus determination including quality and performance of research product, the analyst's success
in rating stocks versus an industry index, and support effectiveness to trading and the retail and institutional sales forces. Other factors
may include but are not limited to: overall ratings from internal (other than investment banking) or external parties and the general
productivity and revenue generated in covered stocks.

The views expressed in this report accurately reflect the personal views of the analyst(s) covering the subject securities. No part
of said person's compensation was, is, or will be directly or indirectly related to the specific recommendations or views
contained in this research report. In addition, said analyst has not received compensation from any subject company in the last
12 months.

Ratings and Definitions
Raymond James & Associates (U.S.) definitions
Strong Buy (SB1) Expected to appreciate, produce a total return of at least 15%, and outperform the S&P 500 over the next six to 12 months.
For higher yielding and more conservative equities, such as REITs and certain MLPs, a total return of at least 15% is expected to be realized
over the next 12 months.
Outperform (MO2) Expected to appreciate and outperform the S&P 500 over the next 12-18 months. For higher yielding and more
conservative equities, such as REITs and certain MLPs, an Outperform rating is used for securities where we are comfortable with the relative
safety of the dividend and expect a total return modestly exceeding the dividend yield over the next 12-18 months.
Market Perform (MP3) Expected to perform generally in line with the S&P 500 over the next 12 months.
Underperform (MU4) Expected to underperform the S&P 500 or its sector over the next six to 12 months and should be sold.
Raymond James U.S. Research
2014 Raymond James & Associates, Inc., member New York Stock Exchange/SIPC. All rights reserved.
International Headquarters: The Raymond James Financial Center
|
880 Carillon Parkway
|
St. Petersburg, Florida 33716
|
800-248-8863 6
Suspended (S) The rating and price target have been suspended temporarily. This action may be due to market events that made coverage
impracticable, or to comply with applicable regulations or firm policies in certain circumstances, including when Raymond James may be
providing investment banking services to the company. The previous rating and price target are no longer in effect for this security and should
not be relied upon.

Raymond James Ltd. (Canada) definitions
Strong Buy (SB1) The stock is expected to appreciate and produce a total return of at least 15% and outperform the S&P/TSX Composite Index
over the next six months.
Outperform (MO2) The stock is expected to appreciate and outperform the S&P/TSX Composite Index over the next twelve months.
Market Perform (MP3) The stock is expected to perform generally in line with the S&P/TSX Composite Index over the next twelve months and
is potentially a source of funds for more highly rated securities.
Underperform (MU4) The stock is expected to underperform the S&P/TSX Composite Index or its sector over the next six to twelve months
and should be sold.

Raymond James Latin American rating definitions
Strong Buy (SB1) Expected to appreciate and produce a total return of at least 25.0% over the next twelve months.
Outperform (MO2) Expected to appreciate and produce a total return of between 15.0% and 25.0% over the next twelve months.
Market Perform (MP3) Expected to perform in line with the underlying country index.
Underperform (MU4) Expected to underperform the underlying country index.
Suspended (S) The rating and price target have been suspended temporarily. This action may be due to market events that made coverage
impracticable, or to comply with applicable regulations or firm policies in certain circumstances, including when Raymond James may be
providing investment banking services to the company. The previous rating and price target are no longer in effect for this security and should
not be relied upon.

Raymond James Euro Equities, SAS rating definitions
Strong Buy (1) Expected to appreciate, produce a total return of at least 15%, and outperform the Stoxx 600 over the next 6 to 12 months.
Outperform (2) Expected to appreciate and outperform the Stoxx 600 over the next 12 months.
Market Perform (3) Expected to perform generally in line with the Stoxx 600 over the next 12 months.
Underperform (4) Expected to underperform the Stoxx 600 or its sector over the next 6 to 12 months.
Suspended (S) The rating and target price have been suspended temporarily. This action may be due to market events that made coverage
impracticable, or to comply with applicable regulations or firm policies in certain circumstances, including when Raymond James may be
providing investment banking services to the company. The previous rating and target price are no longer in effect for this security and should
not be relied upon.

In transacting in any security, investors should be aware that other securities in the Raymond James research coverage universe might carry a
higher or lower rating. Investors should feel free to contact their Financial Advisor to discuss the merits of other available investments.

Rating Distributions
Coverage Universe Rating Distribution Investment Banking Distribution
RJA RJL RJ LatAm RJEE RJA RJL RJ LatAm RJEE
Strong Buy and Outperform (Buy) 54% 68% 50% 47% 22% 36% 0% 0%
Market Perform (Hold) 41% 29% 50% 37% 10% 24% 0% 0%
Underperform (Sell) 5% 3% 0% 16% 0% 33% 0% 0%

Suitability Categories (SR)
Total Return (TR) Lower risk equities possessing dividend yields above that of the S&P 500 and greater stability of principal.
Growth (G) Low to average risk equities with sound financials, more consistent earnings growth, at least a small dividend, and the potential
for long-term price appreciation.
Aggressive Growth (AG) Medium or higher risk equities of companies in fast growing and competitive industries, with less predictable earnings
and acceptable, but possibly more leveraged balance sheets.
High Risk (HR) Companies with less predictable earnings (or losses), rapidly changing market dynamics, financial and competitive issues,
higher price volatility (beta), and risk of principal.
Venture Risk (VR) Companies with a short or unprofitable operating history, limited or less predictable revenues, very high risk associated
with success, and a substantial risk of principal.

Raymond James U.S. Research
2014 Raymond James & Associates, Inc., member New York Stock Exchange/SIPC. All rights reserved.
International Headquarters: The Raymond James Financial Center
|
880 Carillon Parkway
|
St. Petersburg, Florida 33716
|
800-248-8863 7
Raymond James Relationship Disclosures
Raymond James expects to receive or intends to seek compensation for investment banking services from the subject companies in the
next three months.

Stock Charts, Target Prices, and Valuation Methodologies
Valuation Methodology: The Raymond James methodology for assigning ratings and target prices includes a number of qualitative and
quantitative factors including an assessment of industry size, structure, business trends and overall attractiveness; management effectiveness;
competition; visibility; financial condition, and expected total return, among other factors. These factors are subject to change depending on
overall economic conditions or industry- or company-specific occurrences. Only stocks rated Strong Buy (SB1) or Outperform (MO2) have
target prices and thus valuation methodologies.
Target Prices: The information below indicates our target price and rating changes for RT stock over the past three years.



Risk Factors
General Risk Factors: Following are some general risk factors that pertain to the projected target prices included on Raymond James research:
(1) Industry fundamentals with respect to customer demand or product / service pricing could change and adversely impact expected
revenues and earnings; (2) Issues relating to major competitors or market shares or new product expectations could change investor attitudes
toward the sector or this stock; (3) Unforeseen developments with respect to the management, financial condition or accounting policies or
practices could alter the prospective valuation; or (4) External factors that affect the U.S. economy, interest rates, the U.S. dollar or major
segments of the economy could alter investor confidence and investment prospects. International investments involve additional risks such as
currency fluctuations, differing financial accounting standards, and possible political and economic instability.
Specific Investment Risks Related to the Industry or Issuer
Restaurant Industry Risk Factors
Risks include 1) a decline in the ability or propensity for consumers to purchase meals outside the home; 2) a jump in raw food prices or
energy prices; and 3) a drop in market P/E levels.

Additional Risk and Disclosure information, as well as more information on the Raymond James rating system and suitability
categories, is available at rjcapitalmarkets.com/Disclosures/index. Copies of research or Raymond James summary policies relating to
research analyst independence can be obtained by contacting any Raymond James & Associates or Raymond James Financial Services
office (please see raymondjames.com for office locations) or by calling 727-567-1000, toll free 800-237-5643 or sending a written
request to the Equity Research Library, Raymond James & Associates, Inc., Tower 3, 6
th
Floor, 880 Carillon Parkway, St. Petersburg, FL
33716.
Raymond James U.S. Research
2014 Raymond James & Associates, Inc., member New York Stock Exchange/SIPC. All rights reserved.
International Headquarters: The Raymond James Financial Center
|
880 Carillon Parkway
|
St. Petersburg, Florida 33716
|
800-248-8863 8

For clients in the United Kingdom:
For clients of Raymond James & Associates (London Branch) and Raymond James Financial International Limited (RJFI): This document
and any investment to which this document relates is intended for the sole use of the persons to whom it is addressed, being persons
who are Eligible Counterparties or Professional Clients as described in the FCA rules or persons described in Articles 19(5) (Investment
professionals) or 49(2) (High net worth companies, unincorporated associations etc) of the Financial Services and Markets Act 2000
(Financial Promotion) Order 2005 (as amended) or any other person to whom this promotion may lawfully be directed. It is not intended
to be distributed or passed on, directly or indirectly, to any other class of persons and may not be relied upon by such persons and is
therefore not intended for private individuals or those who would be classified as Retail Clients.
For clients of Raymond James Investment Services, Ltd.: This report is for the use of professional investment advisers and managers and
is not intended for use by clients.
For purposes of the Financial Conduct Authority requirements, this research report is classified as independent with respect to conflict of
interest management. RJA, RJFI, and Raymond James Investment Services, Ltd. are authorised and regulated by the Financial Conduct
Authority in the United Kingdom.
For clients in France:
This document and any investment to which this document relates is intended for the sole use of the persons to whom it is addressed,
being persons who are Eligible Counterparties or Professional Clients as described in Code Montaire et Financier and Rglement
Gnral de lAutorit des Marchs Financiers. It is not intended to be distributed or passed on, directly or indirectly, to any other class of
persons and may not be relied upon by such persons and is therefore not intended for private individuals or those who would be
classified as Retail Clients.
For institutional clients in the European Economic Area (EEA) outside of the United Kingdom:
This document (and any attachments or exhibits hereto) is intended only for EEA institutional clients or others to whom it may lawfully be
submitted.
Raymond James International and Raymond James Euro Equities are authorized by the Autorit de contrle prudentiel et de rsolution in
France and regulated by the Autorit de contrle prudentiel et de rsolution and the Autorit des Marchs Financiers.

For Canadian clients:
This report is not prepared subject to Canadian disclosure requirements, unless a Canadian analyst has contributed to the content of the
report. In the case where there is Canadian analyst contribution, the report meets all applicable IIROC disclosure requirements.

Proprietary Rights Notice: By accepting a copy of this report, you acknowledge and agree as follows:
This report is provided to clients of Raymond James only for your personal, noncommercial use. Except as expressly authorized by
Raymond James, you may not copy, reproduce, transmit, sell, display, distribute, publish, broadcast, circulate, modify, disseminate or
commercially exploit the information contained in this report, in printed, electronic or any other form, in any manner, without the prior
express written consent of Raymond James. You also agree not to use the information provided in this report for any unlawful purpose. This is RJA client
releasable research
This report and its contents are the property of Raymond James and are protected by applicable copyright, trade secret or other
intellectual property laws (of the United States and other countries). United States law, 17 U.S.C. Sec.501 et seq, provides for civil and
criminal penalties for copyright infringement.