Ruth's Hospitality posts wider 3Q loss

Ruth's Hospitality Group posts larger 3rd-quarter loss as consumers eat at home more

• On 7:49 am EDT, Friday October 30, 2009

HEATHROW, Fla. (AP) -- Restaurant operator Ruth's Hospitality Group Inc. reported a larger third-quarter loss Friday as recession-weary consumers continued to eat at home more.

"We continue to face challenges related to consumer spending and third-quarter results underscore that fact," President and CEO Michael O'Donnell said in a statement.

The owner of Ruth's Chris Steak House and other restaurants lost $954,000, or 4 cents per share, compared with a loss of $520,000, or 2 cents per share, a year ago.

Analysts predicted a loss of 2 cents per share, according to a Thomson Reuters survey. Analysts' estimates normally exclude one-time items.

Revenue for the three months ended Sept. 28 fell 21 percent to $77.8 million from $98.9 million on weaker restaurant sales and lower franchise income.

The performance missed Wall Street's $80.7 million estimate.

Sales for company-run Ruth's Chris Steak House locations open at least a year dropped 24 percent, while sales for company-owned Mitchell's Fish Market locations open at least a year slipped 12.3 percent.

This figure is a key indicator of a restaurant operator's performance since it measures growth at existing restaurants rather than newly opened ones.