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|Ruth's Hospitality Group, Inc. Reports Second Quarter 2011 Financial Results|
HEATHROW, Fla., Jul 29, 2011 (BUSINESS WIRE) -- Ruth's Hospitality Group, Inc. (NASDAQ: RUTH) today reported unaudited financial results for its second quarter ended June 26, 2011.
Highlights for the second quarter of 2011 compared to the second quarter of 2010 were as follows:
Michael P. O'Donnell, Chairman, President and Chief Executive Officer of Ruth's Hospitality Group, Inc., stated, "We continue to manage our business by focusing on high-level execution, conservative pricing, and creating great value for our guests. Our second quarter performance included our fifth consecutive quarter of comparable sales growth and our sixth consecutive quarter of traffic gains in the Ruth's Chris brand, and while we continue to absorb higher beef costs, our restaurant-level margins improved year over year. Finally, we continued to strengthen our balance sheet during the quarter, and remain active in evaluating development opportunities."
Review of Operating Results
Total revenues, which include Company-owned restaurant sales, franchise income, and other operating income were $92.6 million compared to $88.4 million in the second quarter of 2010.
Company-owned restaurant sales increased 5.1% to $87.5 million for the second quarter of 2011 from $83.3 million in the same quarter last year. Total operating weeks increased 0.9% to 1,117 from 1,107.
Average weekly sales for Ruth's Chris Steak House were $82 thousand in the second quarter of 2011 compared to $77 thousand in the second quarter of 2010. Average weekly sales at Mitchell's Fish Market were $70 thousand compared to $72 thousand in the prior year second quarter.
For the second quarter of 2011, Company-owned comparable restaurant sales at Ruth's Chris Steak House increased 5.8%, which consisted of an entrée increase of 3.3% along with an average check increase of 2.4%. Comparable restaurant sales at Mitchell's Fish Market decreased 1.4%, which consisted of an entrée decrease of 4.7% and an average check increase of 3.5%.
Franchise income increased 3.4% to $2.9 million in the second quarter of 2011 from $2.8 million in the prior year second quarter. Comparable franchise-owned restaurant sales increased 7.1%.
Operating income was $8.4 million in the second quarter of 2011 compared to $8.3 million in the prior year second quarter. The second quarter of 2010 included a $1.1 million restructuring benefit related to the change in estimate of a terminated lease obligation.
Net income available to preferred and common shareholders was $8.5 million, or $0.20 per diluted share, compared to $3.7 million, or $0.09 per diluted share, in the second quarter of 2010.
Net income available to preferred and common shareholders for the second quarter of 2011 includes a tax benefit of $4.0 million or $0.09 per diluted share. Excluding this adjustment, net income was $0.10 per diluted share in current year. Net income available to preferred and common shareholders for the second quarter of 2010 included a net benefit of $0.3 million or $0.01 per share. Excluding this adjustment, net income was $0.08 per diluted share in the prior year period.
Based on current information, Ruth's Hospitality Group, Inc. is reiterating its previous 2011 outlook:
The Company will host a conference call to discuss second quarter 2011 financial results today at 8:30 AM Eastern Time. Hosting the call will be Mike O'Donnell, Chairman, President and Chief Executive Officer, and Bob Vincent, Executive Vice President and Chief Financial Officer.
The conference call can be accessed live over the phone by dialing 877-548-7913 or for international callers by dialing 719-325-4898. A replay will be available one hour after the call and can be accessed by dialing 877-870-5176 or 858-384-5517 for international callers; the password is 4265282. The replay will be available until August 6, 2011. The call will also be webcast live from the Company's website at http://www.rhgi.com under the investor relations section.
About Ruth's Hospitality Group, Inc.
Ruth's Hospitality Group, Inc. (NASDAQ: RUTH) is a leading restaurant company focused exclusively on the upscale dining segment. The Company owns the Ruth's Chris Steak House, Mitchell's Fish Market, Mitchell's Steakhouse and Cameron's Steakhouse concepts. With more than 150 Company- and franchisee-owned locations worldwide, Ruth's Hospitality Group, Inc. was founded in 1965 and is headquartered in Heathrow, Fla.
For further information about our restaurants, to make reservations, or to purchase gift cards, please visit: http://www.RuthsChris.com, http://www.MitchellsFishMarket.com, http://www.MitchellsSteakhouse.com and http://www.Camerons-Steakhouse.com. For more information about Ruth's Hospitality Group, Inc., please visit http://www.rhgi.com.
SOURCE: Ruth's Hospitality Group, Inc.