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Ruth's Hospitality Swings to Profit in Q2; Shares Surge 2.3%

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Shares of fine dining steakhouse firm Ruth’s Hospitality Group (RUTH) closed 2.3% higher on Friday after the company reported strong financial results for the second quarter of 2021. Headquartered in Florida, Ruth’s Hospitality runs more than 100 steakhouses across Canada, the U.S. and Mexico.

The company reported adjusted earnings per share (EPS) of $0.36, beating the Street’s estimate of $0.23. It had reported a loss of $0.48 per share in the second quarter of 2020. Total revenue amounted to $110.9 million, higher than $28.4 million reported in the year-ago quarter and analysts’ expectations of $106.68 million.

Restaurant sales increased to $104.2 million from nearly $27 million, and Franchise income climbed to $4.5 million from $956,000 in the previous year. (See Ruth’s stock chart on TipRanks)

The President, CEO and Chairperson of the Board of Ruth’s Hospitality, Cheryl Henry, said, “We expect to open seven new company-owned or managed restaurants by the end of 2022.”

Last month, Stephens analyst James Rutherford maintained a Buy rating on the stock with a price target of $29 (43.6% upside potential). The analyst said that he would be a strong buyer at the current level “given that the current price doesn’t come close to reflecting the strength of this business.”

Overall, the stock has a Moderate Buy consensus based on 2 Buys and 2 Holds. The average Ruth’s Hospitality Group price target of $26.63 implies 31.8% upside potential. Shares of the company have gained 140.2% over the past year.

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The post Ruth's Hospitality Swings to Profit in Q2; Shares Surge 2.3% appeared first on TipRanks Financial Blog.

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