Ruth\'s Chris Steak House, Inc. (RUTH) - 500 Beiträge pro Seite

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Profile:Ruth\'s Chris Steak House, Inc. operates as a steakhouse company. Its restaurants offer food, beverages, and other services. As of December 4, 2006, the company operated Ruth’s Chris restaurants in 100 locations worldwide. Ruth\'s Chris Steak House was founded in 1965 and is headquartered in Heathrow, Florida.

http://www.ruthschris.com/

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Ruth's Chris Steak House Announces Preliminary Fourth Quarter Sales for Company-owned Restaurants
Thursday January 4, 9:20 am ET
Comparable Sales Increase 7.4%


HEATHROW, Fla.--(BUSINESS WIRE)--Ruth's Chris Steak House, Inc., (Nasdaq: RUTH - News) announced today that company-owned restaurant sales from continuing operations, which excludes franchise and other income, increased 48.5% to $80.4 million for the fourth quarter ended December 31, 2006 versus $54.1 million for the fourth quarter of 2005. The increase from the prior year's quarter was driven by comparable restaurant sales, 10 additional net restaurants in operation during the period, and 14 weeks of operation in the fourth quarter of 2006 versus 13 weeks in 2005. Average weekly restaurant volumes of all operating company-owned locations for the fourth quarter of 2006 increased 8.4% to $118,502.

Total revenues from continuing operations, including franchise and other income, is expected to be between $83.8 and $84.0 million for the fourth quarter of 2006 versus $58.0 million for the fourth quarter of 2005.

For the fourth quarter of 2006, and on a 13-week to 13-week basis, company-owned comparable restaurant sales increased 7.4%, consisting of entree growth of 2.0% and an average check increase of 5.3%. The increased entree growth was partially related to the calendar shift of Christmas Day from a Sunday in 2005 to a Monday in 2006, while the higher per entree spending was partially related to increases in per guest spending for wine and other beverages as well as year over year price increases totaling 3.5%. Company-owned comparable restaurant sales lapped last year's fourth quarter growth of 8.5%.

For the full year 2006 which consisted of 53-weeks, company-owned restaurant sales from continuing operations, which excludes franchise and other income, increased 27.6% to $254.7 million versus $199.6 million for the full year of 2005 which consisted of 52-weeks. The increase from the prior year was driven by comparable restaurant sales, 9 additional net restaurants in operation, and an extra week of operation in 2006 versus 2005. Average unit restaurant volumes of all operating company-owned locations for the full 53 weeks of fiscal 2006 increased 10.3% to $5.8 million versus $5.3 million for the full 52 week year of 2005. For the full year 2006 and on a 52-week to 52-week basis, comparable restaurant sales increased approximately 6.2%, consisting of entree growth of 0.7% and an average check increase of 5.5%.

Total revenues from continuing operations, including franchise and other income, is expected to be between $267.2 and $267.4 million for the full year of 2006 versus $211.6 million for the full year of 2005.

During the three month period ended December 31, 2006, the Company opened locations in Bonita Springs/Estero, Florida and Providence, Rhode Island, while the Company's franchise partners opened locations in Edmonton, Alberta (Canada); Huntsville, Alabama; and the Big Island of Hawaii. The Company also completed the acquisition of a Chicago, Illinois franchise restaurant on October 8, 2006 and a Troy, Michigan franchise restaurant on October 30, 2006.

As expected, food and beverage costs, while higher than the prior year, moderated during the fourth quarter of 2006 versus the third quarter high point, while general and administrative costs were in-line with recent quarters after adjusting for the additional 53rd week.

With the completion of its first full year as a public company, the Company is moving its annual guidance from Proforma to a Generally Accepted Accounting Principles (GAAP) basis. Accordingly, the Company expects full year 2006 diluted earnings per share, on a GAAP basis, to be between $0.96 and $1.00. This annual guidance includes the impact of Statement of Financial Accounting Standards No. 123R Share Based Compensation (SFAS No. 123R) as well as gains from insurance proceeds, other hurricane related costs, and the impairment of one restaurant. The Company expects the net impact from the insurance proceeds, hurricane costs and the impairment to be approximately $0.07 per diluted share.

Selected Financial Information for Company-owned Restaurants:

13 Weeks 14 Weeks 52 Weeks 53 Weeks
Ended Ended Ended Ended
December 25, December 31, December 25, December 31,
2005 2006 2005 2005

All Company
Restaurants:
Operating Weeks 495 678 1,937 2,325
Restaurant Sales
(in millions) $54.1 $80.4 $196.1 $254.7


13 Weeks to 13 Weeks 52 Weeks to 52 Weeks
Ending December 24, 2006 Ending December 24, 2006

Comparable
Restaurants:
Sales 7.4% 6.2%
Entrees (traffic) 2.0% 0.7%
Check (mix and
menu pricing) 5.3% 5.5%

Upcoming Investor Conferences

As a reminder, on Tuesday, January 9, 2007, the Company will be presenting at Cowen & Company's Fifth Annual Consumer Conference at the Westin New York at Times Square in New York City. The presentation will begin at 2:30 PM Eastern Time.

On Thursday, January 11, 2007, the Company will be presenting at the Ninth Annual ICR XChange Conference at the St. Regis Monarch Beach Resort & Spa in Dana Point, California. The presentation will begin at 11:00 AM Pacific Time.

Investors and interested parties can access these presentations by visiting the Company's website at www.ruthschris.com under the investor relations section.

About Ruth's Chris Steak House

Ruth's Chris Steak House, Inc. is the largest fine-dining restaurant company in the U.S., as measured by the total number of company-owned and franchise-owned restaurants, with 100 locations worldwide. Founded in New Orleans by Ruth Fertel in 1965, Ruth's Chris specializes in USDA Prime grade steaks served in Ruth's Chris signature fashion ... "sizzling."

To experience fine dining at its prime . . . just follow the sizzle to Ruth's Chris Steak House. For information, reservations, and gift cards, visit www.RuthsChris.com or call 1-800-544-0808.

Forward-Looking Statements

Some of the statements in this release that are not historical facts and relate to future results and events, including, without limitation, statements regarding our total revenues for the fourth quarter and annual guidance, are "forward-looking statements" as defined in the Private Securities Litigation Reform Act of 1995. These statements are based upon our current beliefs and expectations and involve risks and uncertainties. Actual results may vary materially from those contained in forward-looking statements based on a number of factors including, without limitation, the risks identified as "risk factors" in our 2005 annual report filed on Form 10-K and the other factors identified from time to time in our filings with the Securities and Exchange Commission, all of which are available at www.sec.gov. Investors should take these risks into account when making investment decisions. Shareholders and other readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date on which they are made. We undertake no obligation to update any forward-looking statements.



Contact:
Integrated Corporate Relations
Investor Relations: Tom Ryan or Raphael Gross
Media: John Flanagan
203-682-8200

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Source: Ruth's Chris Steak House, Inc.

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AP
Ruth's Chris Expects Surge in 4Q Sales
Thursday January 4, 10:40 am ET
Ruth's Chris Expects Surge in 4th-Quarter, Full-Year Sales; Shares Rise


HEATHROW, Fla. (AP) -- Ruth's Chris Steak House Inc. said Thursday it expects a more than 44 percent jump in fourth-quarter sales, driven by company-owned restaurant sales, 10 more locations in operation, and a week longer period compared with last year.
ADVERTISEMENT


Total revenue from continuing operations, including franchise and other income, is expected to be between $83.8 and $84 million for the quarter, compared with $58 million last year.

Analysts polled by Thomson Financial, on average, expect a quarterly profit of 35 cents per share on sales of $82.7 million.

Sales at company-owned restaurants open at least a year -- a closely watched indicator known as same-store sales, increased 7.4 percent, due to a a 2 percent hike in entree growth and an average check increase of 5.3 percent, according to the company.

Ruth's Chris expects full-year earnings between 96 cents and $1 per share, and a net impact from insurance proceeds, hurricane costs and the impairment to be about 7 cents per share.

Analysts polled by Thomson Financial, on average, expect a profit of 90 cents per share.

For the full 53-week year, total revenue is expected to be between $267.2 million and $267.4 million, compared with $211.6 million last year. Sales at company-owned restaurants increased about 6.2 percent, including an average check increase of 5.5 percent and entree growth of 0.7 percent.

Wall Street expects revenue of $267 million for the year, according to a Thomson poll.

Shares of Ruth's Chris added 37 cents, or 2 percent, to $18.72 in morning trading on the Nasdaq, where they have traded between $16.90 and $24.61 in the past year.

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Ruth's Chris Steak House, Inc. Reports First Quarter 2007 Financial Results
HEATHROW, Fla.--(BUSINESS WIRE)--May 1, 2007--Ruth's Chris Steak House, Inc. (Nasdaq: RUTH) today reported unaudited results for its first quarter ended April 1, 2007. Highlights for the 13-week first quarter 2007 compared to the 13-week first quarter 2006 were as follows:

-- Total revenue increased 26.0%, from $64.7 million to $81.5
million.

-- Net income increased 14.7% to $6.8 million, or $0.29 per
diluted share, from $5.9 million, or $0.25 in the prior year
period.

-- Comparable restaurant sales increased 1.9% at company-owned
restaurants, lapping 6.8% comparable restaurant sales growth a
year ago.

-- Food and beverage costs, as a percentage of restaurant sales,
were approximately 50 basis points higher quarter over
quarter, primarily driven by higher produce and dairy costs,
partially offset by various sales mix initiatives, slightly
favorable beef costs, and modest price increases.

-- Restaurant operating expenses, as a percentage of restaurant
sales, were approximately 50 basis points higher due to higher
management education costs, credit card fees and property
insurance.

-- Marketing and advertising, as a percentage of total revenues,
were approximately 50 basis points higher, but inline with
previously stated annual goals.

-- General and administrative expenses, as a percentage of total
revenues, were approximately 30 basis points higher as a
result of higher Sarbanes-Oxley compliance costs and other
increased infrastructure costs.

-- Depreciation and amortization expenses increased by $0.9
million to $2.9 million from $2.0 million a year ago due to
ten additional restaurants year-over-year and higher
investments in newer restaurants.

-- Preopening costs increased by $1.0 million to $1.4 million
from $0.4 million a year ago due to increased new restaurant
development activity.

-- During the quarter the Company finalized its insurance claim
related to Hurricane Katrina and incurred losses on the
disposal of certain related assets. Pre-tax insurance proceeds
net of additional hurricane related costs and disposals were
$2.4 million during the quarter.

-- Locations were opened in Lake Mary and Naples, Florida, while
the Company's franchise partners opened locations in Aspen,
Colorado; Charlotte, North Carolina; and Oahu, Hawaii.
Craig S. Miller, Chairman of the Board, President and Chief Executive Officer, stated, "With the conclusion of the first quarter, the Ruth's Chris system has surpassed $500 million in revenue on a trailing twelve-month basis, an important milestone for our team members and franchise partners. At the Company itself, our first quarter marked the sixteenth consecutive period of positive comparable sales growth, a notable achievement made even more difficult by fiscal calendar shifts and unfavorable weather in the Northeast and Midwest."

Miller continued, "We continue to be encouraged by the public's reception of our newest restaurants, which are generating sales volumes nearly 20% higher than the comparable base, further validating our growth strategy. We credit our 'luxury lounge' concept, with its larger bar and lounge areas, and private dining opportunities for attracting a new generation of guests eager to enjoy our legendary U.S. Prime steaks and Southern hospitality."

On April 16, 2007, and subsequent to the conclusion of the first quarter, the Company announced that it has entered into a definitive agreement to acquire three franchised restaurants located in Bellevue and Seattle, Washington, and Portland, Oregon. The total purchase price of $13.25 million, including non-compete agreements, will be financed through borrowings under the Company's revolving credit facility. As a result of this transaction, which is expected to close in July 2007, the Company will have a contiguous company-operated restaurant presence on the West Coast.

Review of Operating Results

Total revenues from continuing operations, which includes company-owned restaurant sales, franchise income, and other operating income, increased 26.0% to $81.5 million in the first quarter of 2007 compared to $64.7 million in the first quarter of 2006. Revenues for the prior year period exclude a company-owned restaurant located in Cleveland, Ohio, which was closed at the end of the second quarter of 2006 and is classified as discontinued operations.

For the first quarter of 2007, Company-owned restaurant sales from continuing operations grew 27.0% to $78.1 million from $61.5 million in the first quarter of 2006, primarily as a result of a 25.3% increase in company restaurant operating weeks to 659 (including 10 additional net restaurants in operation) as well as growth in average weekly sales of 1.4% to $118,574. Average weekly sales for restaurants in the comparable base grew 1.9% to $117,045, while newly opened restaurants continue to exceed the comparable restaurant base's average weekly sales by approximately 19%.

Company-owned comparable restaurant sales increased 1.9% from the first quarter of 2006, marking the sixteenth consecutive quarter of comparable sales growth. Average check increased 5.2% driven by non-entree increases in bar and lounge traffic, menu selection shifts, and year over year menu pricing of approximately 2.5%. This was partially offset by an entree reduction of 3.1%.

Special occasion entree traffic was impacted negatively during the quarter due primarily to the fiscal calendar shift of the seasonally high volume week of New Years to the fourth quarter of 2006 as well as the early Lenten season in the first quarter of 2007 versus last year. Restaurant sales were also negatively impacted by winter storms in the Northeast and Midwest during Valentines week. While the total number of weather impacted days for the quarter was not significant, the skew toward higher volume weekend business was a contributing factor. Company-owned comparable restaurant sales lapped last year's first quarter growth of 6.8%.

Franchise income increased 4.8% to $3.2 million versus $3.0 million in the first quarter of 2006 due primarily to domestic and international increases in comparable franchise-owned restaurant sales of 0.7% and 13.6%, respectively, as well as additional franchise-owned locations year-over-year. This increase was largely offset by the acquisition of seven franchise locations during 2006.

Operating income was $8.3 million compared to $9.0 million in the same period last year.

Net income was $6.8 million in the first quarter of 2007, or $0.29 per diluted share, compared to $5.9 million, or $0.25 per diluted share, in the first quarter of 2006.

Mr. Miller concluded, "Our business model incorporates numerous levers to create long term value, including company owned development, franchising, and franchise acquisitions, and we are clearly executing in all three of these areas thus far in 2007. Given the current size of our domestic restaurant portfolio and limited international presence, we intend to double our U.S. penetration as well as target select cities throughout the world that are ripe for development of our brand. Ultimately, we believe our multi-faceted growth strategy, which combines expanding company owned restaurant operating weeks with a growing and high-margin franchise royalty stream is the surest means to reward shareholders over the long run."

Financial Guidance

As a result of current trends and new restaurant development activity, the Company has made revisions to its annual financial guidance.

For the full 52-week year 2007, the Company estimates that comparable restaurant sales will increase approximately 2.0% to 3.0% (decreased from 3.0% to 4.0%), and that system-wide restaurant operating weeks will grow by greater than 20%. The Company anticipates the opening of approximately 7-8 (increased from 6-7) company-owned and 6-8 franchised locations, of which three company-owned and three franchised locations, respectively, have opened through April 2007.

As previously communicated, the Company has contracted 50% of all beef needs for 2007 as well as reached agreements on other key commodities with suppliers. The Company expects annual food and beverage costs as a percentage of restaurant sales to be between 31.8% and 32.2%, representing a 10-50 basis point reduction versus fiscal 2006. Annual marketing and advertising expenses, as a percentage of total revenue, are expected not to exceed 3.0%. The Company's effective tax rate for 2007 is expected to increase to approximately 32.3% versus 30.0% in 2006.

Based on the above revisions and the related increases in preopening and depreciation expenses, the Company expects full year 2007 diluted earnings per share to be between $1.00 and $1.05, including the impact of Statement of Financial Accounting Standards No. 123R Share Based Compensation (SFAS No. 123R).

Conference Call

The Company will host a conference call to discuss first quarter 2007 financial results today at 4:30 PM Eastern Time. Hosting the call will be Craig S. Miller, Chairman of the Board, President and Chief Executive Officer, and Thomas J. Pennison Jr., Senior Vice-President and Chief Financial Officer.

The conference call can be accessed live over the phone by dialing 800-289-0726 or for international callers by dialing 913-981-5545. A replay will be available one hour after the call and can be accessed by dialing 888-203-1112 or 719-457-0820 for international callers; the password is 5307940. The replay will be available until May 8, 2007. The call will also be webcast live from the Company's website at www.ruthschris.com under the investor relations section.

About the Company

Ruth's Chris Steak House, Inc., is one of the largest fine-dining companies in the U.S., as measured by the total number of company-owned and franchise-owned restaurants, with 106 locations worldwide. Founded in New Orleans by Ruth Fertel in 1965, Ruth's Chris specializes in USDA Prime grade steaks served in Ruth's Chris signature fashion ... "sizzling."

To experience fine dining at its prime ... just follow the sizzle to Ruth's Chris Steak House. For information, reservations, or to purchase gift cards, visit www.RuthsChris.com or call 1-800-544-0808.

Forward-Looking Statements

Some of the statements in this release that are not historical facts and relate to future results and events, including, without limitation, statements regarding financial guidance for fiscal 2007, are "forward-looking statements" as defined in the Private Securities Litigation Reform Act of 1995. These statements are based upon our current beliefs and expectations and involve risks and uncertainties. Actual results may vary materially from those contained in forward-looking statements based on a number of factors including, without limitation, the risks identified as "risk factors" in our 2006 annual report filed on Form 10-K and the other factors identified from time to time in our filings with the Securities and Exchange Commission, all of which are available at www.sec.gov. Investors should take these risks into account when making investment decisions. Shareholders and other readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date on which they are made. We undertake no obligation to update any forward-looking statements.

RUTH'S CHRIS STEAK HOUSE, INC AND SUBSIDIARIES
Consolidated Condensed Income Statements - Unaudited
(dollar amounts in thousands, except share and per share data)

13 Weeks Ending
-------------------------
March 26, April 1,
2006 2007
------------ ------------
Revenues:
Restaurant sales $ 61,511 $ 78,136
Franchise income 3,027 3,173
Other operating income 122 190
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Total revenues 64,660 81,499

Costs and expenses:
Food and beverage costs 19,747 25,437
Restaurant operating expenses 26,791 34,431
Marketing and advertising 1,543 2,328
General and administrative costs 4,985 6,556
Depreciation and amortization expenses 2,024 2,918
Hurricane and relocation costs 149 210
Pre-opening costs 413 1,369
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Operating income 9,008 8,250

Other income (expense):
Interest expense (470) (1,031)
Insurance proceeds, net - 3,739
Loss on the disposal of property and
equipment, net (54) (1,108)
Other 25 189
------------ ------------

Income from continuing operations before
income tax expense 8,509 10,039

Income tax expense 2,605 3,242
------------ ------------

Income from continuing operations 5,904 6,797

Discontinued operations, net of income tax
benefit (11) 14
------------ ------------

Net income available to common shareholders $ 5,915 $ 6,783
============ ============

Basic earnings (loss) per share:
Continuing operations $ 0.26 $ 0.29
Discontinued operations - -
------------ ------------
Basic earnings per share $ 0.26 $ 0.29
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Diluted earnings (loss) per share:
Continuing operations $ 0.25 $ 0.29
Discontinued operations - -
------------ ------------
Diluted earnings per share $ 0.25 $ 0.29
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Shares used in computing net income (loss)
per common share:
Basic 23,109,151 23,224,566
============ ============
Diluted 23,491,093 23,429,400
============ ============
RUTH'S CHRIS STEAK HOUSE, INC AND SUBSIDIARIES
Selected Balance Sheet Data
(dollar amounts in thousands)

December 31, April 1,
2006 2007
------------ -----------
(unaudited)

Cash and cash equivalents $ 4,690 $ 6,299
Total assets 209,720 215,115
Long-term debt 68,000 80,500
Total shareholders' equity 67,978 75,270

CONTACT: ICR
Investor Relations:
Tom Ryan/Raphael Gross, 203-682-8200
or
Media:
John Flanagan/Alecia Pulman, 203-682-8200

SOURCE: Ruth's Chris Steak House, Inc.

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Ruth's Chris Steak House, Inc. Reports Second Quarter 2007 Financial Results
Tuesday July 31, 4:00 pm ET


HEATHROW, Fla.--(BUSINESS WIRE)--Ruth's Chris Steak House, Inc. (Nasdaq: RUTH - News) today reported unaudited results for its second quarter ended July 1, 2007. Highlights for the 13-week second quarter 2007 compared to the 13-week second quarter 2006 were as follows:
Total revenue increased 29.5% to $78.4 million from $60.5 million.
Net income increased 11.8% to $5.4 million, or $0.23 per diluted share, from $4.9 million, or $0.21 in the prior year period.
Same store sales on a fiscal basis decreased 0.4%, while on a comparable calendar basis (adjusting for the fiscal week shift), comparable restaurants sales increased 1.0%, marking the seventeenth consecutive quarter of comparable sales growth. Franchised-owned comparable restaurant sales increased 0.8%.
Food and beverage costs, as a percentage of restaurant sales, were approximately 50 basis points higher quarter over quarter, primarily driven by higher lobster, produce and dairy costs, partially offset by sales mix initiatives, slightly favorable beef costs, and modest price increases.
Restaurant operating expenses, as a percentage of restaurant sales, were approximately 260 basis points higher due to higher labor, management education and property insurance costs in core restaurants (208 basis points) as well as higher labor and operating expenses in newly opened restaurants (52 basis points).
Marketing and advertising expenditures, as a percentage of total revenues, were approximately 70 basis points lower due to reduced utilization of television in select markets in the second quarter of fiscal 2007 versus the second quarter of fiscal 2006.
General and administrative expenses, as a percentage of total revenues, were approximately 230 basis points lower due to leverage from strong revenue gains, reduced incentive compensation earned and certain open positions during the quarter.
Depreciation and amortization expenses, as a percentage of total revenues, were approximately 10 basis points higher due to investments in newer restaurants.
Preopening costs increased by $1.1 million from a year ago due to increased new restaurant development activity.
Company-owned locations were opened in Anaheim, California and Biloxi, Mississippi.
Operating income before Pre-opening expenses increased by 33.8%.
Craig S. Miller, Chairman of the Board, President and Chief Executive Officer, stated, "The second quarter saw a continuation of slower guest traffic from our a la carte diners offset partially by gains from banquet and private dining. It appears the challenging consumer environment as well as planned changes in our marketing strategy have temporarily dampened traffic counts after 3 years of sustained increases. We were able to generate solid performance in absolute terms driven by strong revenue growth from newly opened restaurants, previously franchised restaurants we acquired in 2006, and the resulting leverage from fixed overhead costs. These results were slightly below our internal expectations as slower comparable restaurant sales growth was not sufficient to cover rising operating expenses. Additionally, as expected, margins from newly opened restaurants were slightly compressed."

Miller continued, "Despite the previously mentioned softness in ala carte dining traffic, our diverse customer base continues to provide us with industry leading average unit sales and operating margins. In addition, our newest stores continue to generate strong sales volumes, validating our strategy and brand value in the marketplace. In an effort to spur our sales in the back half of 2007, we are taking multiple steps. Specifically, we are utilizing more local marketing in select markets to complement our national radio and USA Today print ads, as well as testing a Friday lunch initiative designed to encourage professionals looking for a more upscale experience to finish off the week. Further, a new menu layout will be introduced shortly to allow us to more quickly introduce specials. This menu will include an approximate 1.5% price increase as we roll over a similar increase last year."

Ruth's Chris Steak House is on track to open 9 new restaurants over the next 5 months including company units in West Palm Beach, FL, Santa Barbara, CA, Knoxville TN, and Tyson's Corner, VA as well as domestic franchised units in Columbia, SC, Mishawaka, IN, Madison, WI and international units in Tokyo and Calgary. The Company expects to end the year with 61 company operated restaurants, up 22% from December 31, 2006, including the 3 Pacific Northwest locations that we expect to acquire during the third quarter of 2007.

Review of Operating Results

Total revenues from continuing operations, which includes company-owned restaurant sales, franchise income, and other operating income, increased 29.5% to $78.4 million in the second quarter of 2007 compared to $60.5 million in the second quarter of 2006.

Company-owned restaurant sales from continuing operations grew 28.4% to $73.6 million in the second quarter of 2007 from $57.4 million in the same period last year, primarily as a result of a 28.9% increase in company restaurant operating weeks to 687 (including 12 additional restaurants in operation) and slightly offset by an average weekly sales decline of 0.4% to $107,197.

Company-owned same store sales on a fiscal basis decreased 0.4% from the second quarter of 2006. On a comparable calendar basis (adjusting for the fiscal week shift) comparable restaurant sales increased 1.0% marking the seventeenth consecutive quarter of comparable sales growth. Average check increased 4.1% driven by non-entree increases in bar and lounge traffic, menu selection shifts, and year over year menu pricing of approximately 3.0%. This was partially offset by an entree reduction of 3.1%. Company-owned comparable restaurant sales lapped last year's second quarter growth of 6.0%.

Franchise income decreased slightly to $2.9 million from $3.0 million in the second quarter of 2006 due to the acquisition of seven franchise locations last year by the Company, and was partially offset by an increase in comparable franchise-owned restaurant sales of 0.8% and an additional nine franchise-owned locations added to the system year over year.

Other operating income increased to $1.9 million from $0.1 million in the same period last year due primarily to $1.8 million of gift card breakage recognized during the quarter versus $48,000 in the prior year period. The Company recognizes gift card breakage for the remaining value of those cards that have not been redeemed following 18 months from the last date of card activity, and for which there is no third-party claim. This amount is expected to be approximately $2.0 to $2.2 million on an annual basis and will grow in relation to gift card sales growth. Due to the seasonally high volume of gift cards that are purchased during the fourth quarter of each fiscal year, the second quarter, which is 18 months following this period, will have the highest amount of gift card breakage recognition each fiscal year. This factor, in addition to our overall revenue growth, led to a 33.8% increase in Operating Income before pre-opening costs.

Net income was $5.4 million in the second quarter of 2007, or $0.23 per diluted share, compared to $4.9 million, or $0.21 per diluted share, in the second quarter of 2006.

Mr. Miller concluded, "Despite cost pressures, we leveraged our overhead and operating expenses on a sequential basis, including investments we've made in our infrastructure over the last 18 months. In our view, this highlights the progress our team has made and our ability to ultimately get to at least 250 domestic and 50 to 100 international locations. Ultimately, we are confident that as traffic rebounds, in combination with significant operating week expansion, and G&A leverage, we will deliver on our long term earnings growth rate of between 17% and 20%."

Financial Guidance

For the full 52-week fiscal year 2007, the Company now estimates that same store sales will increase approximately 1.0% to 2.0%. This sales assumption implies slightly better second half performance due to a favorable calendar shift and the numerous sales initiatives underway. System-wide restaurant operating weeks will grow by greater than 20% resulting in year over year increases in pre-opening expenses and higher operating costs. The Company anticipates the opening of 8 company-owned and 8 franchised locations, of which 4 company-owned and 3 franchised locations, respectively, have opened through July 2007.

As previously communicated, the Company has contracted 50% of all beef needs for 2007 as well as has agreements in place on other key commodities with suppliers. The Company expects annual food and beverage costs as a percentage of restaurant sales to be between 31.8% and 32.2%, representing a 10-50 basis point reduction versus fiscal 2006. Annual marketing and advertising expenses, as a percentage of total revenue, are expected not to exceed 3.0%. The Company's effective tax rate for 2007 is expected to increase to approximately 32.3% versus 30.0% in 2006.

Based upon the assumed range of comparable restaurant sales growth between 1.0% and 2.0% , modest margin erosion from higher operating costs, the addition of 4 new restaurants in the second half of the year and the resulting pre-opening cost and lower margins, as well as the short term costs we expect to incur to complete the upcoming franchise acquisition, the Company now expects full year 2007 diluted earnings per share to be between $0.92 and $0.97, including the impact of Statement of Financial Accounting Standards No. 123R Share Based Compensation (SFAS No. 123R).

Conference Call

The Company will host a conference call to discuss second quarter 2007 financial results today at 4:30 PM Eastern Time. Hosting the call will be Craig S. Miller, Chairman of the Board, President and Chief Executive Officer, and Thomas J. Pennison Jr., Senior Vice-President and Chief Financial Officer.

The conference call can be accessed live over the phone by dialing 800-811-8830 or for international callers by dialing 913-981-4904. A replay will be available one hour after the call and can be accessed by dialing 888-203-1112 or 719-457-0820 for international callers; the password is 4526367. The replay will be available until August 7, 2007. The call will also be webcast live from the Company's website at www.ruthschris.com under the investor relations section.

About Ruth's Chris Steak House

Ruth's Chris Steak House, Inc. is the largest fine-dining company in the U.S., as measured by the total number of company-owned and franchise-owned restaurants, with 107 locations worldwide. Founded in New Orleans by Ruth Fertel in 1965, Ruth's Chris specializes in USDA Prime grade steaks served in Ruth's Chris signature fashion ... "sizzling."

To experience fine dining at its prime ... just follow the sizzle to Ruth's Chris Steak House. For information, reservations, or to purchase gift cards, visit www.RuthsChris.com or call 1-800-544-0808.

Forward-Looking Statements

Some of the statements in this release that are not historical facts and relate to future results and events, including, without limitation, statements regarding annual guidance and projected new restaurant openings, are "forward-looking statements" as defined in the Private Securities Litigation Reform Act of 1995. These statements are based upon our current beliefs and expectations and involve risks and uncertainties. Actual results may vary materially from those contained in forward-looking statements based on a number of factors including, without limitation, the risks identified as "risk factors" in our 2006 annual report filed on Form 10-K and the other factors identified from time to time in our filings with the Securities and Exchange Commission, all of which are available at www.sec.gov. Investors should take these risks into account when making investment decisions. Shareholders and other readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date on which they are made. We undertake no obligation to update any forward-looking statements.

RUTH'S CHRIS STEAK HOUSE, INC AND SUBSIDIARIES
Consolidated Income Statements - Unaudited
(dollar amounts in thousands, except share and per share data)

13 Weeks Ending 26 Weeks Ending
------------------------- -------------------------
June 25, July 1, June 25, July 1,
2006 2007 2006 2007
------------ ------------ ------------ ------------
Revenues:
Restaurant sales $ 57,377 $ 73,646 $ 118,888 $ 151,781
Franchise income 3,045 2,904 6,072 6,077
Other operating
income 127 1,885 248 2,075
------------ ------------ ------------ ------------
Total revenues 60,549 78,435 125,208 159,933

Costs and
expenses:
Food and
beverage costs 17,966 23,402 37,713 48,839
Restaurant
operating
expenses 25,090 34,141 51,879 68,572
Marketing and
advertising 2,096 2,174 3,639 4,496
General and
administrative
costs 5,777 5,647 10,763 12,208
Depreciation and
amortization
expenses 2,092 2,858 4,116 5,777
Pre-opening
costs 43 1,147 456 2,516
Hurricane and
relocation
costs, net of
insurance
proceeds
(77) 40 72 (3,490)
Loss on the
disposal of
property and
equipment, net - - 54 1,108
------------ ------------ ------------ ------------
Operating
income 7,562 9,026 16,516 19,907

Other income
(expense):
Interest expense (471) (1,159) (941) (2,190)
Other (14) 178 12 366
------------ ------------ ------------ ------------
Income from
continuing
operations
before income
tax expense
7,077 8,045 15,587 18,083

Income tax expense 2,149 2,598 4,754 5,840
------------ ------------ ------------ ------------

Income from
continuing
operations 4,928 5,447 10,833 12,243

Discontinued
operations, net
of income tax
benefit 60 3 49 17
------------ ------------ ------------ ------------
Net income
available to
common
shareholders $ 4,868 $ 5,444 $ 10,784 $ 12,226
============ ============ ============ ============

Basic earnings per
share:
Continuing
operations $ 0.21 $ 0.23 $ 0.47 $ 0.53
Discontinued
operations - - - -
------------ ------------ ------------ ------------
Basic earnings
per share $ 0.21 $ 0.23 $ 0.47 $ 0.53
------------ ------------ ------------ ------------

Diluted earnings
per share:
Continuing
operations $ 0.21 $ 0.23 $ 0.46 $ 0.52
Discontinued
operations - - - -
------------ ------------ ------------ ------------
Diluted earnings
per share $ 0.21 $ 0.23 $ 0.46 $ 0.52
------------ ------------ ------------ ------------

Shares used in
computing net
income per common
share:
Basic 23,154,533 23,188,748 23,132,089 23,206,657
============ ============ ============ ============
Diluted 23,494,847 23,386,431 23,490,811 23,407,937
============ ============ ============ ============

RUTH'S CHRIS STEAK HOUSE, INC AND SUBSIDIARIES
Selected Balance Sheet Data
(dollar amounts in thousands)

December 31, July 1,
2006 2007
------------ ------------

Cash and cash equivalents $ 4,690 $ 1,770
Total assets 209,720 214,933
Long-term debt 68,000 75,500
Total shareholders' equity 67,978 81,139



Contact:
ICR
Investor Relations:
Tom Ryan, 203-682-8200
[e-mail]
or
Raphael Gross, 203-682-8200
[e-mail]
or
Media:
Alecia Pulman, 203-682-8259
[e-mail]

--------------------------------------------------------------------------------
Source: Ruth's Chris Steak House, Inc.