Ruth's Hospitality Group
The 10-second takeaway
For the quarter ended March 31 (Q1), Ruth's Hospitality Group beat slightly on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue grew. Non-GAAP earnings per share expanded significantly. GAAP earnings per share grew.
Margins expanded across the board.
Revenue details
Ruth's Hospitality Group notched revenue of $107.4 million. The five analysts polled by S&P Capital IQ predicted a top line of $106.0 million on the same basis. GAAP reported sales were 6.3% higher than the prior-year quarter's $101.0 million.

Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
EPS details
EPS came in at $0.25. The six earnings estimates compiled by S&P Capital IQ averaged $0.19 per share. Non-GAAP EPS of $0.25 for Q1 were 67% higher than the prior-year quarter's $0.15 per share. GAAP EPS were $0.22 for Q1 against -$0.89 per share for the prior-year quarter.

Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
Margin details
For the quarter, gross margin was 24.1%, 190 basis points better than the prior-year quarter. Operating margin was 12.2%, 230 basis points better than the prior-year quarter. Net margin was 7.1%, 110 basis points better than the prior-year quarter. (Margins calculated in GAAP terms.)
Looking ahead
Next quarter's average estimate for revenue is $102.2 million. On the bottom line, the average EPS estimate is $0.16.
Next year's average estimate for revenue is $416.4 million. The average EPS estimate is $0.58.
Investor sentiment
The stock has a two-star rating (out of five) at Motley Fool CAPS, with 211 members out of 243 rating the stock outperform, and 32 members rating it underperform. Among 75 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 69 give Ruth's Hospitality Group a green thumbs-up, and six give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Ruth's Hospitality Group is outperform, with an average price target of $8.92.
Does Ruth's Hospitality Group have what it takes to execute internationally? Take a look at some American restaurant concepts that are generating profits in all over the globe in, "3 American Companies Set to Dominate the World." It's free for a limited time. Click here for instant access to this free report.
- Add Ruth's Hospitality Group to My Watchlist.