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Ruth's Hospitality Group, Inc. Reports First Quarter 2009 Financial Results HEATHROW, Fla.--(BUSINESS WIRE)--May 5, 2009--Ruth's Hospitality Group, Inc. (NASDAQ: RUTH) today reported unaudited results for its first quarter ended March 29, 2009. Highlights for the first quarter 2009 compared to the first quarter 2008 were as follows:
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Michael P. O'Donnell, President and Chief Executive Officer of Ruth's Hospitality Group, Inc., said, "Aggressive actions taken in late 2008 to reduce both corporate and operating expenses, coupled with favorable beef costs, strengthened our business and enabled us to generate improved profitability from the fourth quarter of 2008. For the period, we once again outperformed the upscale steakhouse index from a guest count perspective, demonstrating that we are gaining market share, despite a contraction in the category. In this value-oriented environment, our customers clearly appreciate our bundled menu offerings, which are designed to make us more relevant to our guests and thereby drive incremental traffic, a key priority for us this year."
Mr. O'Donnell continued, "While it appears that some areas of the economy may be beginning to stabilize, our visibility with respect to the top-line is still rather limited. Thus far in the second quarter, sales volumes have trended downward from first quarter levels, and it's difficult to discern between the Easter Holiday calendar shift, our normal seasonality, and the inherent volatility in consumer confidence. That said, we have a flagship brand and a 44-year history of great service and sizzling steaks, and believe we are executing the right plan in this unprecedented economic cycle."
Review of Operating Results
Total revenues, which include Company-owned restaurant sales, franchise income, and other operating income, decreased 1.1% to $97.5 million in the first quarter of 2009 compared to $98.6 million in the first quarter of 2008.
Company-owned restaurant sales declined 0.3% to $94.7 million for the first quarter of 2009 from $95.0 million for the same quarter last year, including $19.9 million in restaurant sales generated by the Mitchell's brands. Total operating weeks increased 23.2% to 1,140 from 925 (including 286 operating weeks related to the Mitchell's acquisition, compared to 132 in the prior year first quarter).
Average weekly sales for Ruth's Chris Steak House were $87.5 thousand in the first quarter of 2009 compared to $107.2 thousand in the first quarter of 2008. Combined average weekly sales at Mitchell's were $69.6 thousand compared to $80.8 thousand in the prior year first quarter. The Company will consider restaurants acquired through the Mitchell's acquisition to be comparable in the second quarter of 2009.
For the first quarter of 2009, Company-owned comparable restaurant sales at Ruth's Chris Steak House decreased 18.5%. Comparable sales consisted of an average check decrease of 4.5%, an entrée reduction of 14.6%, offset by product mix shifts and pricing of approximately 2.0%.
Franchise income decreased 18.7% to $2.7 million from $3.3 million in the first quarter of 2008. This decrease was driven primarily by a decline in blended comparable franchise-owned restaurant sales of 23.0%.
Operating income was $6.9 million in the first quarter of 2009 versus operating income of $9.3 million in the same quarter last year. Net income was $3.7 million in the first quarter of 2009, or $0.16 per diluted share, compared to net income of $4.5 million, or $0.19 per diluted share, in the first quarter of 2008.
Financial Outlook
Ruth's Hospitality Group is reiterating its previous outlook for 2009:
Conference Call
The Company will host a conference call to discuss first quarter 2009 financial results today at 8:30 AM Eastern Time. Hosting the call will be Mike O'Donnell, 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 888-668-1637 or for international callers by dialing 913-312-1449. A replay will be available one hour after the call and can be accessed by dialing 888-203-1112 or 719-457-0820 for international callers; the pass code is 5630147. The replay will be available until May 12, 2009. The call will also be webcast live from the Company's website at 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 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: www.RuthsChris.com, www.MitchellsFishMarket.com, www.MitchellsSteakhouse.com and www.Camerons-Steakhouse.com. For more information about Ruth's Hospitality Group, please visit www.rhgi.com.
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