Lower beef costs, and a rebound from Florida restaurants impacted by hurricanes last year drove quarterly sales at Ruth’s Hospitality Group Inc.
The Winter Park, Fla.-based steakhouse operator said prime beef supplies are much more favorable this year amid a more than 20-percent increase in supply compared to last year.
“We’d love to see the herd keep grading this high,” CFO Arne G. Haak said during a Friday morning conference call.
For the third quarter ended Sept. 30, same-store sales at company-owned restaurants increased 3.7 percent. Sales were driven by a traffic increase of 1.5 percent and an average check increase of 2.1 percent. Franchise stores saw same-store sales increase 2 percent.
Cheryl Henry, who took over as CEO this summer, said company results benefited from strong comparative results at Florida restaurants, many of which shutdown for 64 days due to hurricanes late last year.
“Excluding that benefit, we still had positive same-store sales growth,” Henry said.
Ruth’s posted third quarter net income of $3.6 million, or 12 cents per share, compared to $1.7 million, or 5 cents per share, for the same quarter last year.
Henry, who joined the company in 2007, said she’s spent the last six months meeting with every general manager and chef. She called them, and all of the company’s employees, “stewards” of the iconic 53-year-old steakhouse brand.
“Their success is the absolute foundation of our brand,” she said.
Total revenue for the quarter increased 16 percent to $99 million, compared to $85.2 million for the same quarter last year.
At the close of the quarter, the company had 78 company stores and 75 franchisee-owned restaurants.
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