Ruth’s Hospitality Group has reported a 4% increase in total revenues in the third quarter of 2019 to $103m compared with $99m in the third quarter of 2018.
Net income during the quarter also rose 25.7% to $4.5m, compared with the previous year’s net income of $3.6m.
This income included $0.3m in acquisition-related expenses associated with the purchase of the three restaurants from the company’s Philadelphia and Long Island franchisee.
It also comprised a $0.3m income tax benefit related to the impact of discrete income tax items.
During the quarter, Ruth’s Hospitality acquired three franchised restaurants.
Two of them are located in the Philadelphia, Pennsylvania area and another one on Long Island, New York, on which the company has development rights.
Ruth’s Hospitality Group president and CEO Cheryl Henry said: “During the quarter, we continued to strengthen our development pipeline with new leases for company-owned restaurants in Long Beach, California and another in Suffolk County on Long Island, New York.
“In addition to these investments, we announced a new $60m share repurchase authorisation, which reflects our commitment to delivering on our total return strategy for our shareholders.”
The company’s restaurant sales in the third quarter rose by 4% to $97.2m. Last year, the sales stood at $93.5m during the quarter.
Comparable restaurant sales at restaurants owned by Ruth’s Hospitality also increased by 0.6% during the third quarter of 2019.
At the end of the third quarter, 81 company-owned Ruth’s Hospitality Chris Steak House restaurants were open.
Franchise income in the third quarter of 2019 stood at $3.9m, representing a decrease of 2.5% compared to $4m in the third quarter of the previous year.
In 2020, the company plans to open restaurants in Washington, District of Columbia; Short Hills, New Jersey; Worcester, Massachusetts; Long Island, New York; and Long Beach, California.
A new restaurant is planned to be opened in Oklahoma City, Oklahoma, in 2021.