RUTH - Ruth's Hospitality Group: Meaningful Margin Expansion In Q2
- Ruth's Hospitality Group released its Q2 results last week, reporting revenue of $110.9 million, translating to a ~1% increase vs. Q2 2019, and a small beat vs. estimates.
- While the company continues to see bifurcated comp-restaurant sales across geographies, sales are ramping up progressively, with comp sales up 5% in Q2.
- The one issue is food & beverage costs which have been impacted, but fortunately, labor efficiencies have more than offset the commodity cost inflation.
- At nearly 20x FY2021 earnings, I don't see a meaningful margin of safety, but if Ruth's were to dip below $18.00, this would present a low-risk buying opportunity.
For further details see:
Ruth's Hospitality Group: Meaningful Margin Expansion In Q2