Only one franchised Ruth's Chris location opened during the second quarter in St. Louis, offset by closings of a franchised location in Denver and a company-owned location in Naples, FL. The company has more than 150 company and franchise-owned locations around the globe.
Michael O'Donnell, Ruth's president and CEO, says lower sales were mitigated by favorable beef costs along with continued cost savings from last year's corporate reorganization. The chain is offering prix-fixe and bundled menu items in an effort to attract customers affected by the recession.
"We are clearly executing on two of our three highest priorities this year: maximizing free cash flow and paying down debt," O'Donnell stated in a release. "Not surprisingly, our third priority, recapturing lost traffic, has been more of a challenge."
Through the second quarter, Ruth's reported $150.0 million in debt outstanding under its senior credit agreement, down $10.3 million from the end of 2008. General and administrative expenses fell to $5.6 million for the quarter, from $10 million a year earlier.
Ruth's has also received approval by the Securities and Exchange Commission for its shelf registration to issue up to $200 million worth of common and preferred stock. The company says it has no current commitment to sell the securities.
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