- Ruth's Hospitality Group is one of the top-performing restaurant stocks since the March lows, and its solid run has continued this year, up 30% year-to-date.
- This impressive share-price performance has been driven by a solid recovery for the company despite reduced capacity, with same-restaurant sales moving into positive territory in April vs. 2019 levels.
- While we should see a continued recovery as restrictions ease, the stock is now valued at more than 22x FY2021 earnings, suggesting a limited margin of safety for new purchases.
- In summary, I don't see any reason to chase the stock above $23.50, and I believe it's best to wait for a sharp correction before starting new positions.
For further details see:
Ruth's Hospitality Group: Limited Margin Of Safety At Current Levels