Ruth's Hospitality Records Street-Beating Q2 Earnings

Ruth's Hospitality Group Inc RUTH reported second-quarter FY22 sales growth of 16% year-on-year to $128.65 million, beating the consensus of $124.48 million.
Comparable restaurant sales jumped 12.6% versus last year and 18.6% versus 2019.
Restaurant sales amounted to $120.8 million, and Franchise income was $5.1 million.
Food and beverage costs, as a percentage of restaurant sales, fell 56 basis points to 29.8%.
Operating margin was 9.7%, and operating income for the quarter was $12.5 million.
Adjusted EPS of $0.44 topped the Street view of $0.31.
The company's board declared a quarterly dividend of $0.14 per share payable on September 2, 2022, to shareholders of record on August 19, 2022.
Subsequent to the end of Q2, the company's board approved a new share repurchase program for up to $60 million, effective August 9, and it does not expire.
Outlook: Ruth's Hospitality expects 2022 combined marketing and general and administrative expenses to be 10.5% - 10.8% of revenue and total capital expenditures to be $50 million - $55 million.
Price Action: RUTH shares traded higher by 0.39% at $18.16 on the last check Friday.