Ruth’s Hospitality Group, Inc. (NASDAQ: RUTH) today reported unaudited financial results for its third quarter ended September 23, 2012.
Highlights for the third quarter of 2012 compared to the third quarter of 2011 were as follows:
The Company reported net income of $802 thousand or $0.02 per diluted share in the third quarter of 2012, compared to net income available to preferred and common shareholders of $85 thousand or $0.00 per diluted share in the comparable period of 2011.
Total revenues in the third quarter rose 5.7% to $84.8 million compared to $80.2 million in the prior year.
- Company-owned comparable restaurant sales for Ruth’s Chris Steak House increased 5.9%.
- Company-owned comparable restaurant sales for Mitchell’s Fish Market increased 4.6%.
Total operating costs in the third quarter increased by 5.7% or $4.4 million, compared to the third quarter of 2011.
- Food and beverage costs, as a percentage of restaurant sales, increased 70 basis points in the third quarter to 31.8% and continue to be driven by unfavorable beef costs.
- Restaurant operating expenses, as a percentage of restaurant sales, decreased 80 basis points in the third quarter to 55.5% due to cost management and the effect of higher sales on fixed costs.
- Marketing and advertising costs, as a percentage of total revenues, increased 60 basis points to 2.6% in the third quarter largely due to a timing shift in advertising from the second quarter to the third and fourth quarters of 2012.
- General and administrative expenses increased $0.2 million to $6.0 million in the quarter.
At the end of the third quarter of 2012, the Company had $69.0 million in debt outstanding under its senior credit facility, a decrease of $2.0 million from $71.0 million at the end of the second quarter of 2012.