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Can They Afford To Pay More?

Econ101

Well-known member
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.
 

Econ101

Well-known member
Ruth Chris Steakhouse prices for steaks only:

ENTRÉES
ABOUT YOUR STEAK

Ruth's Chris specializes in the finest custom-aged Midwestern beef. We broil it exactly the way you like it at 1800°F to lock in the corn-fed flavor. Then we serve your steak sizzzzling on a heated plate so that it stays hot throughout your meal.

Our steaks are served sizzling in butter, specify extra butter or none.
RARE MEDIUM RARE MEDIUM MEDIUM WELL WELL
Very red,
cool center. Red,
warm center. Pink center. Slightly
pink center. Broiled throughout,
no pink.

FILET

The most tender cut of corn-fed Midwestern beef.
$32.95
NEW YORK STRIP

This USDA Prime cut has a full-bodied texture that is slightly firmer than a ribeye.
$37.95
RIBEYE

An outstanding example of USDA Prime at its best. Well marbled for peak flavor, deliciously juicy.
$36.95
PORK PORTERHOUSE

A thick, succulent butcher's cut. Served sizzling.
$27.95
PETITE FILET

A smaller, but equally tender filet.
$29.95
T-BONE

A full-flavored classic cut of Prime beef that offers both the New York strip & filet on the bone.
$42.95
COWBOY RIBEYE

A huge bone-in version of this USDA Prime Cut.
$39.95
VEAL CHOP WITH HOT AND SWEET PEPPERS

Marinated overnight in a savory blend of pepper, garlic and onions. Broiled and served sizzling with hot and sweet peppers.
$30.95

I will have to attest that the steaks at Ruth Chris's are great. This company is doing great selling the high end high grading cuts of meat at high prices.

The only thing that comes with the steak for the above prices is hard rolls and butter. Salads, potatoes and everything else is extra.

MRJ, I know you can't afford it since you can't even go to Steak and Shake so don't embarrass yourself by trying. :eek:
 

Sandhusker

Well-known member
I've been to Denver's and it was a good steak. However, no joshing, I've had better many times at home.

One of the best beefs I ever had was a neighbor's Limmy bull. He had a couple yearlings that didn't sell at his bull sale so he put them in the lot. He asked my dad if he needed any beef and my dad asked me if I wanted to split one. We were needing beef and I said "yes" not knowing it was a bull - I never would of taken it had I known. I found out what I was getting when I picked it up at the locker and thought "geeeze, Dad, what were you thinking?". Anyhow, I was committed so I took it home. That turned out to be some of the best beef I have ever had. I had a buddy from Omaha come up hunting and I put some of those steaks on the grill. He had never seen steaks that big and called them "Fred Flintstone" steaks. After he ate them, he wanted to know where he could buy more - he had never seen steaks that big and that good. I sent him home with a couple packages.
 

lazy ace

Well-known member
Sandhusker said:
I've been to Denver's and it was a good steak. However, no joshing, I've had better many times at home.

One of the best beefs I ever had was a neighbor's Limmy bull. He had a couple yearlings that didn't sell at his bull sale so he put them in the lot. He asked my dad if he needed any beef and my dad asked me if I wanted to split one. We were needing beef and I said "yes" not knowing it was a bull - I never would of taken it had I known. I found out what I was getting when I picked it up at the locker and thought "geeeze, Dad, what were you thinking?". Anyhow, I was committed so I took it home. That turned out to be some of the best beef I have ever had. I had a buddy from Omaha come up hunting and I put some of those steaks on the grill. He had never seen steaks that big and called them "Fred Flintstone" steaks. After he ate them, he wanted to know where he could buy more - he had never seen steaks that big and that good. I sent him home with a couple packages.

I worked for a guy when I was at college and I quickly figured out that he was always pulling my leg about certain stuff but anyway one of his stories was that a Limmy steak would never burn on the grill. :shock: I knew it was BS but have you ever burned one?

I pretty much know the answer but this just reminded me of that story and I had to ask.

have a cold one

lazy ace
 

mrj

Well-known member
Happy to disappoint you, Econ, but we have eaten in Ruths Chris steakhouses a few times in various cities.

The quality has been well worth the cost and lived up to the reputation.

MRJ
 

Sandhusker

Well-known member
MRJ said:
Happy to disappoint you, Econ, but we have eaten in Ruths Chris steakhouses a few times in various cities.

The quality has been well worth the cost and lived up to the reputation.

MRJ

I think you're missing his point, MRJ. Look at what they're selling steaks for - and you say it was well worth the cost.

You also look at the demographics of the people who use the most ground beef and wonder if the arguement can be made that beef isn't high enough.
 

Econ101

Well-known member
MRJ said:
Happy to disappoint you, Econ, but we have eaten in Ruths Chris steakhouses a few times in various cities.

The quality has been well worth the cost and lived up to the reputation.

MRJ[/quote

....and yet you act like you can't go to steak and shake.

I am with Sandhusker on this one and so is my wife. My wife will not eat a steak out because she thinks I cook a much better one on the grill than even the one we had at Ruth Chris's steakhouse. Sandhusker is also right about the fact that incomes have gone up in the US and cattle producers can cater to a high end market instead of playing the commodity beef market all the time.

I hope rkaiser is successful in this regard as I do other U.S. companies.

Commodity beef can't touch that especially if Tyson is playing games by discriminating against the cash market and their high end products just because they have market power to do so.
 

IL Rancher

Well-known member
Ruths is good... Darn expensive but good... About a half dozen steak places in Chicago I would rather go to than the ruth Chris but my Dad loves the place so every time I eat in the big city it seems to be there or Wrigley field.. Don't know if the 50 buck steaks or the 8 dollar Old Style are more over priced :shock: :lol: ..

Seriously though, Pete Millers, The Chop house, Smith and Lewenski's, and Gibsons are better steaks but that is just me I guess...
 

RobertMac

Well-known member
Sandhusker said:
I've been to Denver's and it was a good steak. However, no joshing, I've had better many times at home.

One of the best beefs I ever had was a neighbor's Limmy bull. He had a couple yearlings that didn't sell at his bull sale so he put them in the lot. He asked my dad if he needed any beef and my dad asked me if I wanted to split one. We were needing beef and I said "yes" not knowing it was a bull - I never would of taken it had I known. I found out what I was getting when I picked it up at the locker and thought "geeeze, Dad, what were you thinking?". Anyhow, I was committed so I took it home. That turned out to be some of the best beef I have ever had. I had a buddy from Omaha come up hunting and I put some of those steaks on the grill. He had never seen steaks that big and called them "Fred Flintstone" steaks. After he ate them, he wanted to know where he could buy more - he had never seen steaks that big and that good. I sent him home with a couple packages.

That can't be right...conventional industry scientist have proclaimed testosterone to make beef tough and taste bad. We make steers to get rid of testosterone...but then replace it with 'store bought' hormones. Who is assured of making a dollar on that deal????????????????????

Every cattleman claims his calves grade 80% choice or better. If that is the case, every cattleman is leaving many dollars on the table because quality pays in the H&R market. Producer-owned branded beef programs should own the H&R market!!!!
 
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