"It's slower but still respectable," he said during the company's earnings conference call. He noted that the slower expansion was part of the company's overall strategy to get more from its existing assets.

During the most recent quarter, the chain opened 10 new restaurants and closed none. Franchisees opened five new restaurants and two were closed.

The chain is emerging from a troubled period. By investing more than $50 million to improve operations, Ruby Tuesday achieved diluted earnings per share of 50 cents on net income of $30.2 million, a 19% increase compared to 42 cents per diluted share on net income of $27.5 million for same period last year.

Same-store sales at company-owned Ruby Tuesday restaurants increased 4.7% for the quarter, while same-restaurant sales at domestic franchise Ruby Tuesday restaurants increased 5.4% during the same period.

Moreover, total revenue increased 17.1% during the quarter to $117 million compared to $102 million for the same period last year. During the fourth quarter fiscal 2006, the chain anticipates opening 10 to 12 company-owned restaurants and expects its franchisees will also open 10 to 12 additional Ruby Tuesday restaurants. Currently, Ruby Tuesday owns and operates 619 Ruby Tuesday restaurants, while domestic and international franchisees (including Hawaii) operate 243 restaurants.

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