Tennessee-based casual dining restaurant chain, Ruby Tuesday, Inc. RT, is set to report fiscal third-quarter 2016 results on Apr 7, after the market closes. The company has an average positive earnings surprise of 46.21% for the trailing four quarters. Let’s see how things are shaping up for this announcement. Factors to Consider Ruby Tuesday is aggressively pursuing brand transformation initiatives. From new menu items to limited time offers, executing marketing campaigns, and re-imaging its restaurants, the company is leaving no stone unturned to satisfy customers and return to profits. Based on its sales initiatives, the company expects comps in the range of flat to up 1% in fiscal 2016. The company expects third-quarter comps to be almost in line with the full-year outlook supported by menu innovation and brand transformation initiatives. Meanwhile, these efforts have successfully cut costs and improved margins by reducing marketing expenses. Additionally, Ruby Tuesday’s strategy to exit the non-core brands and shut down underperforming stores is helping it to lower operating costs. These initiatives should aid profits in the to-be-reported quarter. However, like every other restaurant chain, inflationary cost pressure – especially that of labor – is expected to take a toll on Ruby Tuesday’s profits. The company has incurred losses in 5 out of the last 6 quarters. Stocks to Consider Here are a few stocks in the restaurant industry that are likely to beat earnings estimates: Dave & Buster's Entertainment, Inc. PLAY, with an Earnings ESP of +1.69% and a Zacks Rank #1 (Strong Buy). Yum! Brands, Inc. YUM, with an Earnings ESP of +1.20% and a Zacks Rank #3 (Hold). McDonald's Corp. MCD, with an Earnings ESP of +1.74% and a Zacks Rank #2 (Buy). Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report YUM! BRANDS INC (YUM): Free Stock Analysis Report MCDONALDS CORP (MCD): Free Stock Analysis Report DAVE&BUSTRS ENT (PLAY): Free Stock Analysis Report To read this article on Zacks.com click here. Zacks Investment Research