UPDATE: Raymond James Downgraded Ruby Tuesday Following Disappointing Quarter

In a report published Thursday, Raymond James analyst Bryan Elliot downgraded Ruby Tuesday, Inc.

from Market Perform to Underperform and lowered EPS estimates following a disappointing quarter. Elliot noted that continued negative free cash flow will force Ruby Tuesday's to liquidate their real estate, of which their shares are valued. Raymond James estimated that if comp sales stabilize, RT is likely to break even on their free cash flow. If comps continue to fall, Ruby Tuesday will have to sell $275M of real estate. The analyst commented, “Ruby Tuesday is now a troubled business model.” Raymond James reported that comp sales fell 11.4% versus their estimate of 8% and store level cash flow fell almost 50% last year. The analyst lowered EPS estimates from $0 to –($0.55) for FY14 and from $0.10 to –($0.19) in FY15 Ruby Tuesday closed at $7.55 on Wednesday.