Corporate News Blog - Ruth's Hospitality Group Acquires Six Hawaiian Restaurant Locations from Desert Island Restaurants
Research Desk Line-up: Dunkin' Brands Post Earnings Coverage
LONDON, UK / ACCESSWIRE / November 6, 2017 / Pro-Trader Daily takes a look at the latest corporate events and news making the headlines for Ruth's Hospitality Group, Inc. (NASDAQ: RUTH) ("RHGI"), following which we have published a free report that can be viewed by signing up at http://protraderdaily.com/optin/?symbol=RUTH. The Company announced on November 03, 2017, that it has acquired six Hawaiian Ruth's Chris Steak House locations from its longtime franchise partner Desert Island Restaurants for approximately $35 million in cash. For immediate access to our complimentary reports, including today's coverage, register for free now at:
http://protraderdaily.com/register/
Discover more of our free reports coverage from other companies within the Restaurants industry. Pro-TD has currently selected Dunkin' Brands Group, Inc. (NASDAQ: DNKN) for due-diligence and potential coverage as the Company reported on October 26, 2017, its financial results for Q3 2017 which ended on September 30, 2017. Tune in to our site to register for a free membership, and be among the early birds that get our report on Dunkin' Brands when we publish it.
At Pro-TD, we make it our mission to bring you news that matter about the stock you follow. Today, our research desk covers a blog story on RUTH; also brushing on DNKN. Go directly to your stock of interest and access today's free coverage at:
http://protraderdaily.com/optin/?symbol=RUTH
http://protraderdaily.com/optin/?symbol=DNKN
The Desert Island Restaurants, Franchise Partner For Over 20 Years
Scottsdale, Arizona-based Desert Island Restaurants, has been the franchisee for Ruth's Chris restaurants for the last 20 years. Its unique selling point has been founder of Ruth Fertel's successful recipe, that is its sizzling prime steaks and the legendary hospitality, coupled with the aloha spirit of Hawaii. This award-winning group of restaurants includes Honolulu, Waikiki, Lahaina, Wailea, Mauna Lani, and the newest location, Kauai. In these twenty years, the Hawaii Ruth's restaurants have become a preferred location for both locals and travelers. The restaurants have managed to exceed guest expectations by persistently delivering the hospitality of Ruth's Chris.
Transaction Details
The purchase price of $35 million is subject to adjustments for deposits, credits, inventory, and prepaid amounts.
RHGI's team would work closely with the teams at Desert Island Restaurants to ensure a seamless transition for their team members as well as guests. In fact, they are already working diligently on the integration.
The transaction is expected to close before the end of the first quarter of 2018.
RHGI's Team Welcomes the New Chain of Restaurants
The Chairman and Chief Executive Officer (CEO) at RHGI, Mike O'Donnell, welcomed these six remarkable restaurants and their extraordinary teams into the family of RHGI. He highlighted that his team is committed to continuing their success.
O'Donnell believes that these locations truly exemplify the culture of hospitality, quality, and service that has set the group apart from the rest for over 50 years. He also mentioned that he has spent time with the teams in Hawaii and thus knows why the guests appreciate the dining experience in these locations. He looks forward to continuing this great work with the Hawaii teams.
Optimistic Remarks from Desert Island's Leadership
Randy Schoch, Founder and CEO at Desert Island Restaurants, shared his positive expectations from the acquisition. He stated that RHGI's strong market leadership as well as the strength of the Ruth's Chris Steak House brand would ensure a bright future for these six restaurant locations.
RHGI, which is headquartered in Winter Park, Florida, has the maximum number of Company-owned and franchise-owned fine dining steak restaurants in the US. In fact, over 150 Ruth's Chris Steak House locations worldwide specialize in USDA Prime grade steaks served in Ruth's Chris' signature sizzling fashion. Schoch hopes that RHGI will develop upon its previous accomplishments and embrace the island spirit, which has always guided the hospitality of his team.
RHGI Shared Financial Results for Third Quarter 2017
RHGI reported its unaudited financial results on November 03, 2017, for the third quarter ended September 24, 2017.
RHGI reported net revenues of $85.2 million for the third quarter of 2017 compared to the $83.7 million for the third quarter of 2016.
The Company earned a net income of $1.7 million, or $0.05 per diluted share, for the quarter ending September 24, 2017, compared to a net income of $3.6 million, or $0.11 per diluted share, for the same period of last year. The net income includes a benefit of $335 thousand for the settlement of disputed rent charges from 2006 through 2015 for a leased Company restaurant.
RHGI's income from continuing operations was $1.8 million, or $0.06 per diluted share, in the third quarter of 2017 compared to $3.5 million, or $0.11 per diluted share, in the third quarter of 2016.
Last Close Stock Review
Ruth's Hospitality's share price finished last Friday's trading session at $21.25, advancing 3.66%. A total volume of 426.10 thousand shares have exchanged hands, which was higher than the 3-month average volume of 188.60 thousand shares. The Company's stock price soared 7.05% in the last three months, 2.66% in the past six months, and 36.66% in the previous twelve months. Additionally, the stock surged 16.12% since the start of the year. Shares of the Company have a PE ratio of 20.89 and have a dividend yield of 1.69%. The stock currently has a market cap of $647.70 million.
Pro-Trader Daily:
Pro-Trader Daily (Pro-TD) produces regular sponsored and non-sponsored reports, articles, stock market blogs, and popular investment newsletters covering equities listed on NYSE and NASDAQ and Canadian stocks. PRO-TD has two distinct and independent departments. One department produces non-sponsored analyst certified content generally in the form of press releases, articles and reports covering equities listed on NYSE and NASDAQ and the other produces sponsored content (in most cases not reviewed by a registered analyst), which typically consists of compensated investment newsletters, articles, and reports covering listed stocks and micro-caps. Such sponsored content is outside the scope of procedures detailed below.
PRO-TD has not been compensated; directly or indirectly; for producing or publishing this document.
PRESS RELEASE PROCEDURES:
The non-sponsored content contained herein has been prepared by a writer (the "Author") and is fact checked and reviewed by a third party research service company (the "Reviewer") represented by a credentialed financial analyst [for further information on analyst credentials, please email contact@protraderdaily.com. Rohit Tuli, a CFA® charter-holder (the "Sponsor"), provides necessary guidance in preparing the document templates. The Reviewer has reviewed and revised the content, as necessary, based on publicly available information which is believed to be reliable. Content is researched, written and reviewed on a reasonable effort basis. The Reviewer has not performed any independent investigations or forensic audits to validate the information herein. The Reviewer has only independently reviewed the information provided by the Author according to the procedures outlined by PRO-TD. PRO-TD is not entitled to veto or interfere in the application of such procedures by the third-party research service company to the articles, documents or reports, as the case may be. Unless otherwise noted, any content outside of this document has no association with the Author or the Reviewer in any way.
NO WARRANTY
PRO-TD, the Author, and the Reviewer are not responsible for any error which may be occasioned at the time of printing of this document or any error, mistake or shortcoming. No liability is accepted whatsoever for any direct, indirect or consequential loss arising from the use of this document. PRO-TD, the Author, and the Reviewer expressly disclaim any fiduciary responsibility or liability for any consequences, financial or otherwise arising from any reliance placed on the information in this document. Additionally, PRO-TD, the Author, and the Reviewer do not (1) guarantee the accuracy, timeliness, completeness or correct sequencing of the information, or (2) warrant any results from use of the information. The included information is subject to change without notice.
NOT AN OFFERING
This document is not intended as an offering, recommendation, or a solicitation of an offer to buy or sell the securities mentioned or discussed, and is to be used for informational purposes only. Please read all associated disclosures and disclaimers in full before investing. Neither PRO-TD nor any party affiliated with us is a registered investment adviser or broker-dealer with any agency or in any jurisdiction whatsoever. To download our report(s), read our disclosures, or for more information, visit http://protraderdaily.com/disclaimer/.
CONTACT
For any questions, inquiries, or comments reach out to us directly. If you're a company we are covering and wish to no longer feature on our coverage list contact us via email and/or phone between 09:30 EDT to 16:00 EDT from Monday to Friday at:
Email: contact@protraderdaily.com
Phone number: (917) 341.4653
Office Address: Mainzer Landstrasse 50 Frankfurt am Main, Germany 60325
CFA® and Chartered Financial Analyst® are registered trademarks owned by CFA Institute.
SOURCE: Pro-Trader Daily
