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|Ruth's Hospitality Group, Inc. Reports Third Quarter 2011 Financial Results|
WINTER PARK, Fla., Oct 26, 2011 (BUSINESS WIRE) -- Ruth's Hospitality Group, Inc. (NASDAQ: RUTH) today reported unaudited financial results for its third quarter ended September 25, 2011.
Highlights for the third quarter of 2011 compared to the third quarter of 2010 were as follows:
Michael P. O'Donnell, Chairman, President and Chief Executive Officer of Ruth's Hospitality Group, Inc., stated, "We're pleased to have delivered our sixth consecutive quarter of comparable sales growth and our seventh consecutive quarter of traffic gains in the Ruth's Chris brand, despite what turned out to be a challenging external environment. While our profit was modest this quarter, it was significant in that it was our first profit in four years in what is our seasonally weakest quarter from a sales perspective. I am grateful for the efforts of our team members and would like to thank them for their extraordinary effort and continued dedication. By focusing on high-level execution and creating great value for our guests, we believe we have strengthened and stabilized our brand. Our balance sheet remains strong and we continue to be prudent in evaluating our development opportunities."
Review of Operating Results
Total revenues, which include Company-owned restaurant sales, franchise income, and other operating income were $80.2 million compared to $78.6 million in the third quarter of 2010.
Company-owned restaurant sales increased 1.9% to $77.1 million for the third quarter of 2011 from $75.7 million in the same quarter last year. Total operating weeks decreased 0.2% to 1,103 from 1,105 due to the relocation of our Portland restaurant.
Average weekly sales for Ruth's Chris Steak House were $72 thousand in the third quarter of 2011 compared to $70 thousand in the third quarter of 2010. Average weekly sales at Mitchell's Fish Market were $66 thousand compared to $67 thousand in the prior year third quarter.
For the third quarter of 2011, Company-owned comparable restaurant sales at Ruth's Chris Steak House increased 2.6%, which consisted of an entrée increase of 1.2% along with an average check increase of 1.4%. Comparable restaurant sales at Mitchell's Fish Market decreased 0.7%, which consisted of an entrée decrease of 2.4% and an average check increase of 1.8%.
Franchise income increased 10.7% to $2.9 million in the third quarter of 2011 from $2.6 million in the prior year third quarter. Comparable franchise-owned restaurant sales increased 6.1% with strong growth in the international markets. In September, we opened a franchised restaurant in Grand Rapids, MI in the historic Amway Grand Hotel.
Operating income was $1.7 million in the third quarter of 2011 compared to $1.7 million in the prior year third quarter.
Net income available to preferred and common shareholders was $85 thousand, or $0.00 per diluted share, compared to a net loss of $477 thousand, or ($0.01) per diluted share, in the third quarter of 2010.
The following statements are not guarantees of future performance, and therefore, undue reliance should not be placed upon them. We refer all of you to our recent filings with the SEC for a more detailed discussion of the risks that could impact future operating results and financial conditions.
Based on current information, Ruth's Hospitality Group, Inc. is updating its previous 2011 outlook:
The Company will host a conference call to discuss third quarter 2011 financial results today at 8:00 AM Eastern Time. Hosting the call will be Mike O'Donnell, Chairman, President and Chief Executive Officer, and Arne Haak, Chief Financial Officer.
The conference call can be accessed live over the phone by dialing 877-419-6590 or for international callers by dialing 719-325-4746. 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 4774286. The replay will be available until November 2, 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 Winter Park, 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.