Ruth’s Chris Steak House Announces Preliminary First Quarter Sales for Company-owned Restaurants
Marks 16th Consecutive Quarter of Positive Comparable Sales Growth with a 1.9% Increase
BusinessWire
April 09, 2007 08:00 AM Eastern Daylight Time
HEATHROW, Fla.--(BUSINESS WIRE)--Ruth’s Chris Steak House, Inc., (Nasdaq: RUTH) announced today that company-owned restaurant sales from continuing operations, which excludes franchise and other income, increased 27% to $78.1 million for the first quarter ended April 1, 2007 versus $61.5 million for the first quarter of 2006. The increase over the prior year’s quarter was driven by comparable restaurant sales and 10 additional restaurants in operation during the period. Company restaurant operating weeks increased 25.3% to 659 during the quarter with the average weekly restaurant volumes of all operating company-owned locations increasing 1.4% to $118,574. Newly opened restaurants continue to exceed the comparable restaurant base’s average weekly volume by approximately 19%.
Total revenues from continuing operations, including franchise and other income, is expected to be between $81.3 and $81.5 million for the first quarter of 2007 versus $64.7 million for the first quarter of 2006.
For the first quarter of 2007, company-owned comparable restaurant sales increased 1.9% marking the 16th consecutive quarter of comparable sales growth. This growth consisted of an average check increase of 5.2% driven by non-entrée increases in bar and lounge traffic, menu selection shifts, and year over year menu pricing of approximately 2.5%. This was partially offset by an entrée reduction of 3.1%. Special occasion entrée traffic was impacted negatively during the quarter due primarily to the fiscal calendar shift of the seasonally high volume week of New Years moving to the 4th quarter of 2006 as well as the early Lenten season versus last year. Sales were also negatively impacted by winter storms in the Northeast and Midwest during Valentines week. While the total number of weather impacted days for the quarter was not significant, the skew toward higher volume weekend business was a contributing factor. Company-owned comparable restaurant sales lapped last year’s first quarter growth of 6.8% and cumulative three-year growth of 30.6% in the first quarter.
During the quarter ended April 1, 2007, the Company opened locations in Lake Mary and Naples, Florida, while Franchise partners opened locations in Aspen, Colorado, Charlotte, North Carolina and Oahu, Hawaii.
Despite caution surrounding higher beef prices and consumer trends, the Company reiterates expected full year 2007 diluted earnings per share, on a GAAP basis, of between $1.05 and $1.09, including the impact of Statement of Financial Accounting Standards No. 123R Share Based Compensation (SFAS No. 123R). For the full 52-week year 2007, Ruth's Chris continues to estimate that comparable restaurant sales will increase approximately 3.0% to 4.0%. As previously communicated, the Company anticipates increasing system-wide restaurant operating weeks by approximately 20%. This includes opening approximately 6-7 company-owned and 6-8 franchised locations in 2007, of which two company-owned and three franchised locations, respectively, have opened so far.
Selected Financial Information for Company-owned Restaurants:
13 Weeks Ended
13 Weeks Ended
April 1, 2007
March 26, 2006
All Company Restaurants:
Operating Weeks
659
526
Restaurant Sales (in millions)
$78.1
$61.5
13 Weeks Ended
April 1, 2007
Comparable Restaurants:
Sales
1.9%
Entrées(1) (traffic)
(3.1%)
Check(2) (menu mix and menu pricing)
5.2%
(1) Entrées is a traffic measure that represents the number of menu entrées ordered in our restaurants. Guests who dine with us or who only visit our lounge area without ordering an entrée are not included in this total.
(2) Check is equivalent to sales divided by entrées and includes the impact of non-entrée bar and lounge traffic, menu mix expansion and pricing.
About Ruth's Chris Steak House
Ruth's Chris Steak House, Inc. is the largest fine-dining companies in the U.S., as measured by the total number of company-owned and franchise-owned restaurants, with 105 locations worldwide. Founded in New Orleans by Ruth Fertel in 1965, Ruth's Chris specializes in USDA Prime grade steaks served in Ruth's Chris signature fashion ... "sizzling."
To experience fine dining at its prime . . . just follow the sizzle to Ruth's Chris Steak House. For information, reservations, and gift cards, visit www.RuthsChris.com or call 1-800-544-0808.
Forward-Looking Statements
Some of the statements in this release that are not historical facts and relate to future results and events, including, without limitation, statements regarding our total revenues for the first quarter and annual guidance, are “forward-looking statements” as defined in the Private Securities Litigation Reform Act of 1995. These statements are based upon our current beliefs and expectations and involve risks and uncertainties. Actual results may vary materially from those contained in forward-looking statements based on a number of factors including, without limitation, the risks identified as “risk factors” in our 2006 annual report filed on Form 10-K and the other factors identified from time to time in our filings with the Securities and Exchange Commission, all of which are available at www.sec.gov. Investors should take these risks into account when making investment decisions. Shareholders and other readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date on which they are made. We undertake no obligation to update any forward-looking statements.
Marks 16th Consecutive Quarter of Positive Comparable Sales Growth with a 1.9% Increase
BusinessWire
April 09, 2007 08:00 AM Eastern Daylight Time
HEATHROW, Fla.--(BUSINESS WIRE)--Ruth’s Chris Steak House, Inc., (Nasdaq: RUTH) announced today that company-owned restaurant sales from continuing operations, which excludes franchise and other income, increased 27% to $78.1 million for the first quarter ended April 1, 2007 versus $61.5 million for the first quarter of 2006. The increase over the prior year’s quarter was driven by comparable restaurant sales and 10 additional restaurants in operation during the period. Company restaurant operating weeks increased 25.3% to 659 during the quarter with the average weekly restaurant volumes of all operating company-owned locations increasing 1.4% to $118,574. Newly opened restaurants continue to exceed the comparable restaurant base’s average weekly volume by approximately 19%.
Total revenues from continuing operations, including franchise and other income, is expected to be between $81.3 and $81.5 million for the first quarter of 2007 versus $64.7 million for the first quarter of 2006.
For the first quarter of 2007, company-owned comparable restaurant sales increased 1.9% marking the 16th consecutive quarter of comparable sales growth. This growth consisted of an average check increase of 5.2% driven by non-entrée increases in bar and lounge traffic, menu selection shifts, and year over year menu pricing of approximately 2.5%. This was partially offset by an entrée reduction of 3.1%. Special occasion entrée traffic was impacted negatively during the quarter due primarily to the fiscal calendar shift of the seasonally high volume week of New Years moving to the 4th quarter of 2006 as well as the early Lenten season versus last year. Sales were also negatively impacted by winter storms in the Northeast and Midwest during Valentines week. While the total number of weather impacted days for the quarter was not significant, the skew toward higher volume weekend business was a contributing factor. Company-owned comparable restaurant sales lapped last year’s first quarter growth of 6.8% and cumulative three-year growth of 30.6% in the first quarter.
During the quarter ended April 1, 2007, the Company opened locations in Lake Mary and Naples, Florida, while Franchise partners opened locations in Aspen, Colorado, Charlotte, North Carolina and Oahu, Hawaii.
Despite caution surrounding higher beef prices and consumer trends, the Company reiterates expected full year 2007 diluted earnings per share, on a GAAP basis, of between $1.05 and $1.09, including the impact of Statement of Financial Accounting Standards No. 123R Share Based Compensation (SFAS No. 123R). For the full 52-week year 2007, Ruth's Chris continues to estimate that comparable restaurant sales will increase approximately 3.0% to 4.0%. As previously communicated, the Company anticipates increasing system-wide restaurant operating weeks by approximately 20%. This includes opening approximately 6-7 company-owned and 6-8 franchised locations in 2007, of which two company-owned and three franchised locations, respectively, have opened so far.
Selected Financial Information for Company-owned Restaurants:
13 Weeks Ended
13 Weeks Ended
April 1, 2007
March 26, 2006
All Company Restaurants:
Operating Weeks
659
526
Restaurant Sales (in millions)
$78.1
$61.5
13 Weeks Ended
April 1, 2007
Comparable Restaurants:
Sales
1.9%
Entrées(1) (traffic)
(3.1%)
Check(2) (menu mix and menu pricing)
5.2%
(1) Entrées is a traffic measure that represents the number of menu entrées ordered in our restaurants. Guests who dine with us or who only visit our lounge area without ordering an entrée are not included in this total.
(2) Check is equivalent to sales divided by entrées and includes the impact of non-entrée bar and lounge traffic, menu mix expansion and pricing.
About Ruth's Chris Steak House
Ruth's Chris Steak House, Inc. is the largest fine-dining companies in the U.S., as measured by the total number of company-owned and franchise-owned restaurants, with 105 locations worldwide. Founded in New Orleans by Ruth Fertel in 1965, Ruth's Chris specializes in USDA Prime grade steaks served in Ruth's Chris signature fashion ... "sizzling."
To experience fine dining at its prime . . . just follow the sizzle to Ruth's Chris Steak House. For information, reservations, and gift cards, visit www.RuthsChris.com or call 1-800-544-0808.
Forward-Looking Statements
Some of the statements in this release that are not historical facts and relate to future results and events, including, without limitation, statements regarding our total revenues for the first quarter and annual guidance, are “forward-looking statements” as defined in the Private Securities Litigation Reform Act of 1995. These statements are based upon our current beliefs and expectations and involve risks and uncertainties. Actual results may vary materially from those contained in forward-looking statements based on a number of factors including, without limitation, the risks identified as “risk factors” in our 2006 annual report filed on Form 10-K and the other factors identified from time to time in our filings with the Securities and Exchange Commission, all of which are available at www.sec.gov. Investors should take these risks into account when making investment decisions. Shareholders and other readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date on which they are made. We undertake no obligation to update any forward-looking statements.