Ruth's Hospitality Group (RUTH) Misses Q2 EPS by 6c, Slight Revenue Beat

Ruth's Hospitality Group (NASDAQ: RUTH) reported Q2 EPS of ($0.59), $0.06 worse than the analyst estimate of ($0.53). Revenue for the quarter came in at $28.4 million versus the consensus estimate of $28.51 million.

Cheryl Henry, President and Chief Executive Officer of Ruth's Hospitality Group, Inc., stated, “While the past several months have been a test of resiliency, the tireless efforts of our Ruth’s Chris team have transformed our business. Demonstrated by significant improvements in our sales trends, I’m pleased to say that we have been encouraged by the strong consumer demand, despite capacity restrictions. Our team continues to provide the renowned service Ruth’s Chris is known for, all while keeping the health and safety of our guests paramount.”

Henry concluded, “While there is continued uncertainty surrounding COVID-19, it is clear to me that there is solid consumer demand for eating in our dining rooms when we are able to re-open. We believe that our cash position, expense reductions and operational changes provide the financial resources to withstand continued market volatility. I’m incredibly grateful for the privilege of serving with both our Ruth Chris’ team members and franchise partners.”

Financial Outlook

Due to the ongoing uncertainty around the duration and severity of the COVID-19 pandemic, the Company has withdrawn its financial guidance for fiscal year 2020. As of July 28th, the Company’s cash balance was $94.0 million. While the Company’s cash burn has improved as restaurants have re-opened, the Company currently expects weekly cash burn for the third quarter to be approximately $1.0 million per week, which excludes out of period rent payments and closure costs.

The foregoing statements are not guarantees of future performance, and therefore, undue reliance should not be placed upon them. We refer you to the “Cautionary Note Regarding Forward-Looking Statements” section in this earnings press release and to our recent filings with the Securities and Exchange Commission for more detailed discussions of the risks that could impact our financial outlook and our future operating results and financial condition.

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

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