Ruth’s Hospitality Group, Inc. (NASDAQ: RUTH) today reported unaudited financial results for its second quarter ended June 24, 2012.
Highlights for the second quarter of 2012 were as follows:
The Company reported net income applicable to preferred and common shareholders of $5.8 million or $0.17 per diluted share in the second quarter of 2012. In the comparable period of 2011 a tax benefit of $4.4 million contributed to GAAP earnings. Excluding the second quarter 2011 tax benefit, earnings per diluted share for the second quarter of 2012 increased 70% to $0.17 from $0.10. (See accompanying Reconciliation of Non-GAAP Financial Measure table.)
Total revenues in the second quarter rose 6.2% to $97.7 million compared to $92.0 million in the prior year.
- Company-owned comparable restaurant sales for Ruth’s Chris Steak House increased 6.0%.
- Company-owned comparable restaurant sales for Mitchell’s Fish Market increased 2.3%.
- Food and beverage costs, as a percentage of restaurant sales, increased 170 basis points in the second quarter to 32.2% and continue to be driven by unfavorable beef costs.
- Restaurant operating expenses, as a percentage of restaurant sales, decreased 60 basis points in the second quarter to 51.1% as increased sales leverage offset higher health insurance costs.
- Marketing and advertising costs, as a percentage of total revenues, decreased 90 basis points to 2.5% in the second quarter due to a timing shift in local media advertising to the third and fourth quarters of 2012.
- General and administrative expenses increased $0.9 million to $6.2 million in the second quarter due to increased personnel costs.