Ruth’s Hospitality Group reports first-quarter profit up 62 percent on lower costs

Ruth’s Hospitality Group’s 1Q profit rises 70 pct

HEATHROW, Fla. — Ruth’s Hospitality Group Inc. said Friday that its first-quarter profit soared 62 percent despite flat sales as the company cut costs and benefited from lower beef prices.

The operator of Ruth’s Chris Steak House restaurants, Mitchell’s Fish Market and other restaurants, handily beat analyst’s earnings estimates.

The company has been cutting costs to deal with the economic slump, which has hurt restaurant demand.

CEO Michael P. O’Donnell said the profit growth reflected stabilizing sales and better cost management.

The company said it earned $6.3 million, or 19 cents a share, in the first three months of the year, up from $3.7 million, or 16 cents a share, a year ago.

Revenue was flat at $94.7 million.

Excluding an income tax benefit, its adjusted earnings came to 17 cents a share. Analysts expected the company to earn 13 cents a share excluding one-time items on revenue of $92.1 million.

The company, based in Heathrow, Fla., has more than 150 company and franchisee-owned locations globally.

Sales at company-owned Ruth’s Chris Steak House restaurants open at least a year fell 0.5 percent, while the same measurement rose 2.4 percent at Mitchell’s Fish Market.

The figure is a key one for restaurants and retailers because it measures growth at existing locations rather than including new ones.

Ruth’s shares fell 20 cents, or 3.4 percent, to $5.71 in midday trading Friday.