Basis of Presentation

Description of Business

Ruby Tuesday, Inc., including its wholly-owned subsidiaries (“RTI,” the “Company,” “we,” and/or “our”), owns and operates Ruby Tuesday® casual dining restaurants. We also franchise the Ruby Tuesday concept in selected domestic and international markets.

September 5, 2017,

we owned and operated

541

Ruby Tuesday restaurants concentrated primarily in the Southeast, Northeast, Mid-Atlantic, and Midwest of the United States, which we consider to be our core markets. As discussed further in Note

to the Condensed Consolidated Financial Statements, during the

weeks ended

August 30, 2016,

we closed

Company-owned restaurants,

of which were closed following a comprehensive review of the Company’s property portfolio as they were perceived to have limited upside due to market concentration, challenged trade areas, and other factors.

Basis of Presentation

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 considered necessary for a fair presentation have been included and are of a normal recurring nature. In addition, certain reclassifications were made to prior period amounts to conform to the current period presentation. The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the amounts reported in the Condensed Consolidated Financial Statements and accompanying notes. Actual results could differ from those estimates. Operating results for the

weeks ended

September 5, 2017

are

not

necessarily indicative of results that

may

be expected for the

-week year ending

June 5, 2018.

These financial statements should be read in conjunction with the audited consolidated financial statements and footnotes thereto included in RTI’s Annual Report on Form

-K for the fiscal year ended

June 6, 2017.

Reclassifications

As shown in the table below, we split our previously reported expenses within Selling, general, and administrative, net into separately reported General and administrative expenses and Marketing expenses, net in the Condensed Consolidated Statements of Operations and Comprehensive Loss for the prior periods to be comparable with the classification for the

weeks ended

September 5, 2017.

Amounts presented are in thousands.

	Thirteen Weeks Ended
	As presented August 30, 2016		Reclassifications			As a djusted August 30, 2016
Selling, general, and administrative, net	$	31,585		(31,585	)	$	-
General and administrative expenses		-		16,089			16,089
Marketing expenses, net		-		15,496			15,496

Cash and cash equivalents and Restricted cash are separately reported in the Condensed Consolidated Balance Sheets as of

September 5, 2017

and

June 6, 2017.

Restricted cash was included within Cash and cash equivalents as of

August 30, 2016.

We adjusted the Condensed Consolidated Statement of Cash Flows for the

weeks ended

August 30, 2016

to be comparable with the current presentation of Restricted cash.