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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%.
Total operating costs in the second quarter increased by 6.1% or $5.1 million, compared to the second quarter of 2011.
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.
Michael P. O'Donnell, Chairman, President and Chief Executive Officer of Ruth's Hospitality Group, Inc., stated, “Our business momentum continued during the quarter led by the ninth consecutive quarter of comparable store sales growth and the tenth straight period of traffic growth at our Ruth’s Chris brand despite a challenging environment. We are also pleased with the recent sales improvement at Mitchell’s and are excited about the efforts of the new leadership team that has been in place just a few short months. While beef costs continued to pose a significant headwind, through the combined efforts of our entire team we drove strong second quarter results.”