Ruth's Hospitality Q3 Earnings Top Estimates Despite Higher Beef Costs

Ruth's Hospitality Group Inc RUTH reported third-quarter FY21 sales growth of 64.3% year-on-year, to $104.19 million, beating the analyst consensus of $102.17 million.
Comparable Restaurant Sales jumped 66.8% versus last year and 7.6% versus 2019.
Restaurant sales amounted to $97.5 million, and Franchise income was $4.7 million.
Operating income for the quarter was $9.03 million versus $(5.12) million last year. The operating margin was 8.7% versus 5.4% in 3Q19.
EPS of $0.20 beat the analyst consensus of $0.12.
Total beef costs increased 65% versus last year and 47% compared to 3Q19.
The company held $84.6 million in cash and equivalents as of October 27, 2021.
"Although elevated beef costs continue to be a headwind, we are encouraged by our continued sales momentum, profitability and our financial strength," said CEO Cheryl Henry.
Price Action: RUTH shares traded higher by 4.97% at $19.85 on the last check Friday.