Ruth's Hospitality Group (RUTH) Tops Q2 EPS by 2c, Revenues Miss

Ruth's Hospitality Group (NASDAQ: RUTH) reported Q2 EPS of $0.32, $0.02 better than the analyst estimate of $0.30. Revenue for the quarter came in at $1.01 billion versus the consensus estimate of $111.72 million.

Restaurant sales in the second quarter of 2018 increased 10.0% to $103.5 million compared to $94.1 million in the second quarter of 2017.
The Company reported net income of $9.6 million, or $0.32 per diluted share, in the second quarter of 2018, compared to net income of $7.8 million, or $0.25 per diluted share, in the second quarter of 2017.

• Income from continuing operations in the second quarter of 2018 was $9.6 million, or $0.32 per diluted share, compared to income from continuing operations of $7.8 million, or $0.25 per diluted share, in the second quarter of 2017.
• Net income in the second quarter of 2018 included a $0.3 million income tax benefit related to the impact of discrete income tax items.
  • Net income in the second quarter of 2018 also included $0.4 million in deal-related expenses associated with the acquisition of the six restaurants of our Hawaiian franchisee.
  • Excluding these adjustments, as well as the results from discontinued operations, non-GAAP diluted earnings per common share were $0.32 in the second quarter of 2018, compared to $0.25 in the second quarter of 2017. The Company believes that non-GAAP diluted earnings per common share provides a useful alternative measure of financial performance. Investors are advised to see the attached Reconciliation of non-GAAP Financial Measure table for additional information.

Michael P. O'Donnell, Chairman and Chief Executive Officer of Ruth's Hospitality Group, Inc., noted, “I am pleased with our second quarter results, which reflect the strength and consistency of our business. Financial results included revenue growth of 9.6%, comparable restaurant sales growth of 1.3%, and restaurant level margin expansion. Our Hawaiian restaurants are steadily achieving sales and profits ahead of our expectations, and we are in the final stages of a successful integration.”

O’Donnell continued, “I am incredibly proud of the team we have assembled here at Ruth’s Hospitality Group and of our many accomplishments over the last 10 years. The Company is well-positioned for continued success, due in large part to initiatives designed and implemented by Cheryl Henry, our new Chief Executive Officer. I remain extremely confident in the future of the Company, and look forward to supporting Cheryl in my new role as Executive Chairman.”

For earnings history and earnings-related data on Ruth's Hospitality Group (RUTH) click here.

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