Ruth’s Hospitality Group Inc. (RUTH, Financial) continues to expand on the heels of strong third-quarter results.
The company's Ruth's Chris chain, famous for steaks served on 500-degree sizzling plates, has opened its latest restaurant -- its 151st -- in Lake Grove, New York at the popular Smith Haven Mall.
The new 6,917-square-foot space features two main dining rooms, a luxurious bar with ample seating and a variety of high tops, along with two private dining rooms that can accommodate personal and family celebrations, business meetings and more, according to a release. The space is elegantly appointed and thoughtfully designed to provide a pleasurable and refined dining experience for every guest.
As part of the pre-opening celebration, executives of the 56-year-old restaurant chain founded by Ruth Fertel hosted a special dinner with community leaders, business owners, members of the media and local influencers while raising money for the restaurant’s local charity partner and food bank for Long Island – Island Harvest.
“We are thrilled to be joining the Smith Haven Mall community and to be serving those who live in and visit the surrounding area,” Patrick Costello, general manager for Ruth’s Chris in Lake Grove, said in the announcement.
“Long Island has been home to Ruth’s Chris for more than 25 years, and we are very excited to open another location there that will allow us to welcome even more guests to enjoy our truly unique and unmatched steak house experience,” Cheryl Henry, president and CEO of Ruth’s Hospitality Group, said.
The company’s trademark broiling method, seasoning techniques and signature 500-degree plate have been lauded across the industry for years. The menu also includes fresh seafood, scratch-made side dishes and desserts, craft cocktails and choice wines.
The newest opening comes on the heels of Ruth’s Hospitality Group's third-quarter results.
Restaurant sales in the third quarter were $97.5 million, compared to $58.6 million in the prior-year quarter. The company noted that comparable restaurant sales compared to 2019 would have increased 14.6% were it not for the impact of three markets (Boston, Hawaii and Manhattan) that have continued to be challenged by local restrictions and market conditions.
Operating income was $9.0 million compared to an operating loss of $5.1 million in the third quarter of 2020 and operating income of $5.6 million in the third quarter of 2019. As a percentage of total revenue, operating income increased to 8.7% compared to 5.4% in the third quarter of 2019.
Net income was $6.9 million, or 20 cents per diluted share, compared to net loss of $5.3 million, or 15 cents per diluted share, in the year-ago quarter.
Food and beverage costs, as a percentage of restaurant sales, increased 710 basis points to 34.2% compared to the same period last year. Total beef costs increased 65% compared to the third quarter of 2020 and 47% compared to the third quarter of 2019.
Franchise income was $4.7 million compared to $3.5 million in the third quarter of 2020. Third-quarter 2021 comparable restaurant sales at franchisee-owned restaurants increased 35.6% compared to 2020 and 19.5% compared to the third quarter of 2019.
Henry noted in a statement, “Our third-quarter results demonstrated our team’s operational excellence in a challenging and dynamic environment… Although elevated beef costs continue to be a headwind, we are encouraged by our continued sales momentum, profitability and our financial strength. We have confidence that we can continue to create value for shareholders as the virus abates and the economy recovers.”
