Document And Entity Information
Document And Entity Information - shares | 3 Months Ended | |
Mar. 26, 2017 | Apr. 28, 2017 | |
Document Information [Line Items] | ||
Entity Registrant Name | Ruths Hospitality Group, Inc. | |
Entity Central Index Key | 1,324,272 | |
Trading Symbol | ruth | |
Current Fiscal Year End Date | --12-25 | |
Entity Filer Category | Accelerated Filer | |
Entity Current Reporting Status | Yes | |
Entity Voluntary Filers | No | |
Entity Well-known Seasoned Issuer | No | |
Document Type | 10-Q | |
Document Period End Date | Mar. 26, 2017 | |
Document Fiscal Year Focus | 2,017 | |
Document Fiscal Period Focus | Q1 | |
Amendment Flag | false | |
Common Stock [Member] | ||
Document Information [Line Items] | ||
Entity Common Stock, Shares Outstanding (in shares) | 32,003,044 | |
Unvested Restricted Stock [Member] | ||
Document Information [Line Items] | ||
Entity Common Stock, Shares Outstanding (in shares) | 1,310,475 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets (Current Period Unaudited) - USD ($) $ in Thousands | Mar. 26, 2017 | Dec. 25, 2016 |
Current assets: | ||
Cash and cash equivalents | $ 3,048 | $ 3,788 |
Accounts receivable, less allowance for doubtful accounts 2017 - $730; 2016 - $729 | 9,800 | 20,790 |
Inventory | 7,569 | 7,396 |
Prepaid expenses and other | 2,201 | 2,446 |
Total current assets | 22,618 | 34,420 |
Property and equipment, net of accumulated depreciation 2017 - $135,658; 2016 - $132,817 | 104,745 | 103,041 |
Goodwill | 24,293 | 24,293 |
Deferred income taxes | 9,382 | 9,924 |
Other assets | 713 | 699 |
Total assets | 196,824 | 207,472 |
Current liabilities: | ||
Accounts payable | 8,672 | 7,064 |
Accrued payroll | 12,178 | 14,902 |
Accrued expenses | 7,656 | 11,672 |
Deferred revenue | 31,405 | 38,155 |
Other current liabilities | 10,936 | 7,622 |
Total current liabilities | 70,847 | 79,415 |
Long-term debt | 14,000 | 25,000 |
Deferred rent | 21,970 | 21,737 |
Other liabilities | 2,251 | 2,311 |
Total liabilities | 109,068 | 128,463 |
Commitments and contingencies (Note 11) | ||
Shareholders' equity: | ||
Common stock, par value $.01 per share; 100,000,000 shares authorized, 30,686,095 shares issued and outstanding at March 26, 2017, 30,549,283 shares issued and outstanding at December 25, 2016 | 307 | 305 |
Additional paid-in capital | 95,825 | 95,266 |
Accumulated deficit | (8,376) | (16,562) |
Treasury stock, at cost; 71,950 shares at March 26, 2017 and December 25, 2016 | ||
Total shareholders' equity | 87,756 | 79,009 |
Total liabilities and shareholders' equity | 196,824 | 207,472 |
Franchise Rights [Member] | ||
Current assets: | ||
Finite-lived intangible assets | 32,200 | 32,200 |
Other Intangible Assets [Member] | ||
Current assets: | ||
Finite-lived intangible assets | $ 2,873 | $ 2,895 |
Condensed Consolidated Balance3
Condensed Consolidated Balance Sheets (Current Period Unaudited) (Parentheticals) - USD ($) $ in Thousands | Mar. 26, 2017 | Dec. 25, 2016 |
Allowance for doubtful accounts | $ 730 | $ 729 |
Property and equipment, accumulated depreciation | $ 135,658 | $ 132,817 |
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Common stock, shares authorized (in shares) | 100,000,000 | 100,000,000 |
Common stock, shares issued (in shares) | 30,686,095 | 30,549,283 |
Common stock, shares outstanding (in shares) | 30,686,095 | 30,549,283 |
Treasury stock, shares (in shares) | 71,950 | 71,950 |
Franchise Rights [Member] | ||
Finite-lived intangible assets, accumulated amortization | $ 218 | $ 218 |
Other Intangible Assets [Member] | ||
Finite-lived intangible assets, accumulated amortization | $ 1,201 | $ 1,179 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Income (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 26, 2017 | Mar. 27, 2016 | |
Revenues: | ||
Restaurant sales | $ 99,455 | $ 95,937 |
Franchise income | 4,390 | 4,501 |
Other operating income | 1,693 | 1,452 |
Total revenues | 105,538 | 101,890 |
Costs and expenses: | ||
Food and beverage costs | 28,579 | 28,445 |
Restaurant operating expenses | 45,447 | 43,922 |
Marketing and advertising | 2,446 | 1,970 |
General and administrative costs | 8,137 | 7,664 |
Depreciation and amortization expenses | 3,505 | 3,101 |
Pre-opening costs | 1,179 | 354 |
Total costs and expenses | 89,293 | 85,456 |
Operating income | 16,245 | 16,434 |
Other income (expense): | ||
Interest expense, net | (179) | (213) |
Other | 24 | 7 |
Income from continuing operations before income tax expense | 16,090 | 16,228 |
Income tax expense | 5,005 | 5,346 |
Income from continuing operations | 11,085 | 10,882 |
Loss from discontinued operations, net of income tax benefit: 2017 - $23; 2016 - $77 | (37) | (120) |
Net income | $ 11,048 | $ 10,762 |
Basic earnings (loss) per common share: | ||
Continuing operations (in dollars per share) | $ 0.36 | $ 0.33 |
Discontinued operations (in dollars per share) | ||
Basic earnings per share (in dollars per share) | 0.36 | 0.33 |
Diluted earnings (loss) per common share: | ||
Continuing operations (in dollars per share) | 0.35 | 0.33 |
Discontinued operations (in dollars per share) | ||
Diluted earnings per share (in dollars per share) | $ 0.35 | $ 0.33 |
Shares used in computing net income (loss) per common share: | ||
Basic (in shares) | 30,575,224 | 32,626,645 |
Diluted (in shares) | 31,253,186 | 33,073,660 |
Cash dividends declared per common share (in dollars per share) | $ 0.09 | $ 0.07 |
Condensed Consolidated Stateme5
Condensed Consolidated Statements of Income (Unaudited) (Parentheticals) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 26, 2017 | Mar. 27, 2016 | |
Income tax benefit | $ (23) | $ (77) |
Condensed Consolidated Stateme6
Condensed Consolidated Statements of Shareholders' Equity (Unaudited) - USD ($) shares in Thousands, $ in Thousands | Common Stock [Member] | Additional Paid-in Capital [Member] | Retained Earnings [Member] | Treasury Stock [Member] | Total |
Balance (in shares) at Dec. 27, 2015 | 33,146 | 72 | |||
Balance at Dec. 27, 2015 | $ 331 | $ 135,403 | $ (37,832) | $ 97,902 | |
Net income | 10,762 | 10,762 | |||
Cash dividends | (2,350) | (2,350) | |||
Shares issued under stock compensation plan net of shares withheld for tax effects (in shares) | 183 | ||||
Shares issued under stock compensation plan net of shares withheld for tax effects | $ 2 | (1,207) | (1,205) | ||
Stock-based compensation | 1,330 | 1,330 | |||
Balance (in shares) at Mar. 27, 2016 | 32,597 | 72 | |||
Balance at Mar. 27, 2016 | $ 326 | 124,225 | (29,420) | 95,131 | |
Repurchase of common stock (in shares) | (732) | ||||
Repurchase of common stock | $ (7) | (11,660) | (11,667) | ||
Excess tax benefit from stock based compensation | 359 | 359 | |||
Balance (in shares) at Dec. 25, 2016 | 30,549 | 72 | |||
Balance at Dec. 25, 2016 | $ 305 | 95,266 | (16,562) | 79,009 | |
Net income | 11,048 | 11,048 | |||
Cash dividends | (2,862) | (2,862) | |||
Shares issued under stock compensation plan net of shares withheld for tax effects (in shares) | 137 | ||||
Shares issued under stock compensation plan net of shares withheld for tax effects | $ 2 | (999) | (997) | ||
Stock-based compensation | 1,558 | 1,558 | |||
Balance (in shares) at Mar. 26, 2017 | 30,686 | 72 | |||
Balance at Mar. 26, 2017 | $ 307 | $ 95,825 | $ (8,376) | $ 87,756 |
Condensed Consolidated Stateme7
Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 26, 2017 | Mar. 27, 2016 | |
Cash flows from operating activities: | ||
Net income | $ 11,048 | $ 10,762 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation and amortization | 3,505 | 3,101 |
Deferred income taxes | 542 | 2,924 |
Non-cash interest expense | 56 | 105 |
Debt issuance costs written-off | 16 | |
Stock-based compensation expense | 1,558 | 1,330 |
Changes in operating assets and liabilities: | ||
Accounts receivable | 10,991 | 8,609 |
Inventories | (173) | (32) |
Prepaid expenses and other | 244 | (728) |
Other assets | 328 | 2 |
Accounts payable and accrued expenses | (3,992) | (8,108) |
Deferred revenue | (6,750) | (6,402) |
Deferred rent | 232 | 455 |
Other liabilities | 4,098 | 339 |
Net cash provided by operating activities | 21,703 | 12,357 |
Cash flows from investing activities: | ||
Acquisition of property and equipment | (7,170) | (6,148) |
Proceeds from sale of property and equipment | 220 | |
Net cash used in investing activities | (7,170) | (5,928) |
Cash flows from financing activities: | ||
Principal borrowings on long-term debt | 8,000 | 14,000 |
Principal repayments on long-term debt | (19,000) | (6,000) |
Repurchase of common stock | (11,667) | |
Cash dividend payments | (2,862) | (2,350) |
Tax payments from the vesting of restricted stock and option exercises | (1,055) | (1,272) |
Excess tax benefits from stock compensation | 359 | |
Proceeds from the exercise of stock options | 57 | 67 |
Deferred financing costs | (413) | |
Net cash used in financing activities | (15,273) | (6,863) |
Net decrease in cash and cash equivalents | (740) | (434) |
Cash and cash equivalents at beginning of period | 3,788 | 3,095 |
Cash and cash equivalents at end of period | 3,048 | 2,661 |
Supplemental disclosures of cash flow information: | ||
Interest, net of capitalized interest | 141 | 108 |
Income taxes | 195 | 1,294 |
Noncash investing and financing activities: | ||
Accrued acquisition of property and equipment | $ 1,962 | $ 972 |
Note 1 - The Company and Basis
Note 1 - The Company and Basis of Presentation | 3 Months Ended |
Mar. 26, 2017 | |
Notes to Financial Statements | |
Significant Accounting Policies [Text Block] | (1) The accompanying unaudited condensed consolidated financial statements of Ruth’s Hospitality Group, Inc. and its subsidiaries (collectively, the Company) as of March 26, 2017 December 27, 2015 thirteen March 26, 2017 March 27, 2016 Ruth’s Hospitality Group, Inc. is a restaurant company focused on the upscale dining segment. Ruth’s Hospitality Group, Inc. operates Company-owned Ruth’s Chris Steak House restaurants and sells franchise rights to Ruth’s Chris Steak House franchisees giving the franchisees the exclusive right to operate similar restaurants in a particular area designated in the franchise agreement. As of March 26, 2017, 153 70 two 81 20 New January 2017 March 2017. A January 2017. The information furnished herein reflects all adjustments (consisting of normal recurring accruals and adjustments), which are, in the opinion of management, necessary to fairly present the operating results for the respective periods. The interim results of operations for the periods ended March 26, 2017 March 27, 2016 may 10 December 25, 2016. The Company operates on a 52 53 December. March 26, 2017 March 27, 2016 thirteen first 2017 first 2016, 2017 53 2016 52 Estimates Management of the Company has made a number of estimates and assumptions relating to the reporting of assets and liabilities, the disclosure of contingent assets and liabilities at the date of the condensed consolidated financial statements and the reporting of revenue and expenses during the periods to prepare these condensed consolidated financial statements in conformity with U.S. generally accepted accounting principles. Significant items subject to such estimates and assumptions include the carrying amounts of property and equipment, goodwill, franchise rights, and obligations related to gift cards, incentive compensation, workers’ compensation and medical insurance. Actual results could differ from those estimates. Recent Accounting Pronouncements for Future Application In May 2014, 2014 09, 2014 09), December 15, 2017, first 2018. 2014 09, $3 $6 2014 09 $1.3 $1.4 2016 2015, 2014 09 In February 2016, 2016 02, 842). December 15, 2018, first 2019 2016 02 1) 2) In August 2016 2016 15, 230). December 15, 2017. 2016 15 In October 2016, 2016 16, 740). December 15, 2017, first 2018 In January 2017, 2017 04, 350). two one 2017 04 December 15, 2019 first January 1, 2017. 2017 04 |
Note 2 - Mitchell's Restaurants
Note 2 - Mitchell's Restaurants | 3 Months Ended |
Mar. 26, 2017 | |
Notes to Financial Statements | |
Disposal Groups, Including Discontinued Operations, Disclosure [Text Block] | (3) The Company accounts for its closed restaurants in accordance with the provisions of FASB ASC Topic 360 10, December 29, 2014, 2014 08, 2014 08 December 28, 2014 2014 08, thirteen March 26, 2017 March 27, 2016, 13 Weeks Ended March 26, March 27, 2017 2016 Revenues Mitchell's Restaurants $ - $ - Other Restaurants - - Total revenues - - Costs and expenses Recurring costs and expenses Mitchell's Restaurants 33 29 Other Restaurants 27 168 Total costs and expenses 60 197 Loss before income taxes (60 ) (197 ) Income tax benefit (23 ) (77 ) Loss from discontinued operations, net of income taxes $ (37 ) $ (120 ) Cash flows from discontinued operations are combined with the cash flows from continuing operations within each of the categories on our condensed consolidated statements of cash flows. We do not anticipate that the sale of the Mitchell’s Restaurants or any of our closed restaurants reported as discontinued operations will have a material impact on the Company’s cash flow during fiscal year 2017. |
Mitchells Restaurants [Member] | |
Notes to Financial Statements | |
Disposal Groups, Including Discontinued Operations, Disclosure [Text Block] | (2) As of December 28, 2014, eighteen three In November 2014, $10 January 21, 2015. 21 No four Under the terms of the Agreement, Landry’s assumed the Mitchell’s Restaurants’ facility lease obligations and the Company reimbursed Landry’s for gift cards that were sold prior to the closing date and used at the Mitchell’s Restaurants during the eighteen The Company guaranteed Landry’s lease obligations aggregating $34.7 nine |
Note 3 - Discontinued Operation
Note 3 - Discontinued Operations | 3 Months Ended |
Mar. 26, 2017 | |
Notes to Financial Statements | |
Disposal Groups, Including Discontinued Operations, Disclosure [Text Block] | (3) The Company accounts for its closed restaurants in accordance with the provisions of FASB ASC Topic 360 10, December 29, 2014, 2014 08, 2014 08 December 28, 2014 2014 08, thirteen March 26, 2017 March 27, 2016, 13 Weeks Ended March 26, March 27, 2017 2016 Revenues Mitchell's Restaurants $ - $ - Other Restaurants - - Total revenues - - Costs and expenses Recurring costs and expenses Mitchell's Restaurants 33 29 Other Restaurants 27 168 Total costs and expenses 60 197 Loss before income taxes (60 ) (197 ) Income tax benefit (23 ) (77 ) Loss from discontinued operations, net of income taxes $ (37 ) $ (120 ) Cash flows from discontinued operations are combined with the cash flows from continuing operations within each of the categories on our condensed consolidated statements of cash flows. We do not anticipate that the sale of the Mitchell’s Restaurants or any of our closed restaurants reported as discontinued operations will have a material impact on the Company’s cash flow during fiscal year 2017. |
Note 4 - Long-term Debt
Note 4 - Long-term Debt | 3 Months Ended |
Mar. 26, 2017 | |
Notes to Financial Statements | |
Debt Disclosure [Text Block] | (4) Long-term debt consists of the following (in thousands): March 26, December 25, 2017 2016 Senior Credit Facility: Revolving credit facility $ 14,000 $ 25,000 Less current maturities - - $ 14,000 $ 25,000 As of March 26, 2017, $14.0 $71.4 $4.6 March 26, 2017, 2.3% 1.6%. 0.2%. March 26, 2017, On February 14, 2012, $100.0 February 14, 2017. 2.00% 2.75% 1.00% 1.75% February 2, 2017. On February 2, 2017, $90.0 $5.0 $5.0 may $150.0 February 2, 2022. may 0.50% one 1.00%, 1.50% 2.25% 0.50% 1.25% The Credit Agreement contains customary representations and affirmative and negative covenants (including limitations on indebtedness and liens) as well as financial covenants requiring a minimum fixed coverage charge ratio and limiting the Company’s consolidated leverage ratio. The Credit Agreement also contains events of default customary for credit facilities of this type (with customary grace periods, as applicable), including nonpayment of principal or interest when due; material incorrectness of representations and warranties when made; breach of covenants; bankruptcy and insolvency; unsatisfied ERISA obligations; unstayed material judgment beyond specified periods; default under other material indebtedness; and certain changes of control of the Company. If any event of default occurs and is not cured within the applicable grace period, or waived, the outstanding loans may may |
Note 5 - Shareholders' Equity
Note 5 - Shareholders' Equity | 3 Months Ended |
Mar. 26, 2017 | |
Notes to Financial Statements | |
Stockholders' Equity Note Disclosure [Text Block] | (5) In April 2016, $60 November 2014, first thirteen 2017 The Company’s Board of Directors declared the following dividends during the periods presented (amounts in thousands, except per share amounts): Declaration Date Dividend per Share Record Date Total Amount Payment Date Fiscal Year 2017: February 17, 2017 $ 0.09 February 23, 2017 $ 2,862 March 9, 2017 Fiscal Year 2016: February 12, 2016 $ 0.07 February 25, 2016 $ 2,350 March 10, 2016 Subsequent to the end of the first 2017, $0.09 $2.9 June 1, 2017 May 18, 2017. Outstanding unvested restricted stock is not included in common stock outstanding amounts. Restricted stock outstanding as of March 26, 2017 1,275,849 |
Note 6 - Fair Value Measurement
Note 6 - Fair Value Measurements | 3 Months Ended |
Mar. 26, 2017 | |
Notes to Financial Statements | |
Fair Value, Measurement Inputs, Disclosure [Text Block] | (6) The carrying amounts of cash and cash equivalents, receivables, prepaid expenses, accounts payable and accrued expenses and other current liabilities are reasonable estimates of their fair values due to their short duration. Borrowings classified as current and long-term debt as of March 26, 2017 December 25, 2016 2). As of March 26, 2017 December 25, 2016, no 820. |
Note 7 - Segment Information
Note 7 - Segment Information | 3 Months Ended |
Mar. 26, 2017 | |
Notes to Financial Statements | |
Segment Reporting Disclosure [Text Block] | (7) The Company has two March 26, 2017, 70 two 81 Segment information related to the Company’s two 13 Weeks Ended March 26, March 27, 2017 2016 Revenues: Company-owned steakhouse restaurants $ 100,174 $ 96,515 Franchise operations 4,390 4,501 Unallocated other revenue and revenue discounts 974 874 Total revenues $ 105,538 $ 101,890 Segment profits: Company-owned steakhouse restaurants $ 26,148 $ 24,148 Franchise operations 4,390 4,501 Total segment profit 30,538 28,649 Unallocated operating income 974 874 Marketing and advertising expenses (2,446 ) (1,970 ) General and administrative costs (8,137 ) (7,664 ) Depreciation and amortization expenses (3,505 ) (3,101 ) Pre-opening costs (1,179 ) (354 ) Interest expense, net (179 ) (213 ) Other income 24 7 Income from continuing operations before income tax expense $ 16,090 $ 16,228 Capital expenditures: Company-owned steakhouse restaurants $ 6,873 $ 5,996 Corporate assets 297 152 Total capital expenditures $ 7,170 $ 6,148 March 26, December 25, 2017 2016 Total assets: Company-owned steakhouse restaurants $ 180,424 $ 185,820 Franchise operations 1,977 2,707 Corporate assets - unallocated 5,041 9,021 Deferred income taxes - unallocated 9,382 9,924 Total assets $ 196,824 $ 207,472 |
Note 8 - Stock-based Employee C
Note 8 - Stock-based Employee Compensation | 3 Months Ended |
Mar. 26, 2017 | |
Notes to Financial Statements | |
Disclosure of Compensation Related Costs, Share-based Payments [Text Block] | (8) As of December 26, 2016 first 2017), 2016 09, 718), first thirteen 2017, 2016 09, Under the Amended and Restated 2005 March 26, 2017, 73,794 1,275,849 1,786,050 first thirteen 2017, 207,025 207,025 first thirteen 2017, 36,724 2018, 133,577 2019 36,724 2020. first thirteen 2017 2016 $1.6 $1.3 |
Note 9 - Income Taxes
Note 9 - Income Taxes | 3 Months Ended |
Mar. 26, 2017 | |
Notes to Financial Statements | |
Income Tax Disclosure [Text Block] | (9) Income tax expense differs from amounts computed by applying the federal statutory income tax rate to income from continuing operations before income taxes as follows: 13 Weeks Ended March 26, March 27, 2017 2016 Income tax expense at statutory rates 35.0 % 35.0 % Increase (decrease) in income taxes resulting from: State income taxes, net of federal benefit 3.0 % 4.2 % Federal employment tax credits (6.8 %) (6.8 %) Other (0.1 %) 0.5 % Effective tax rate 31.1 % 32.9 % The Company utilizes the federal FICA tip credit to reduce its periodic federal income tax expense. A restaurant company employer may The Company files consolidated and separate income tax returns in the United States federal jurisdiction and many state jurisdictions, respectively. With few exceptions, the Company is no longer subject to U.S. federal or state income tax examinations for years before 2012. |
Note 10 - Earnings Per Share
Note 10 - Earnings Per Share | 3 Months Ended |
Mar. 26, 2017 | |
Notes to Financial Statements | |
Earnings Per Share [Text Block] | (10) The following table sets forth the computation of earnings per share (amounts in thousands, except share and per share amounts): 13 Weeks Ended March 26, March 27, 2017 2016 Income from continuing operations $ 11,085 $ 10,882 Loss from discontinued operations, net of income taxes (37 ) (120 ) Net income $ 11,048 $ 10,762 Shares: Weighted average number of common shares outstanding - basic 30,575,224 32,626,645 Weighted average number of common shares outstanding - diluted 31,253,186 33,073,660 Basic earnings (loss) per common share: Continuing operations $ 0.36 $ 0.33 Discontinued operations - - Basic earnings per common share $ 0.36 $ 0.33 Diluted earnings (loss) per common share: Continuing operations $ 0.35 $ 0.33 Discontinued operations - - Diluted earnings per common share $ 0.35 $ 0.33 Diluted earnings per share for the first 2017 2016 4,641 24,829, first 2017 2016 $19.51 $19.05 |
Note 11 - Commitments and Conti
Note 11 - Commitments and Contingencies | 3 Months Ended |
Mar. 26, 2017 | |
Notes to Financial Statements | |
Commitments and Contingencies Disclosure [Text Block] | (11) The Company is subject to various claims, possible legal actions and other matters arising in the normal course of business. Management does not expect disposition of these other matters to have a material adverse effect on the financial position, results of operations or liquidity of the Company. The Company expenses legal fees as incurred. The legislation and regulations related to tax and unclaimed property matters are complex and subject to varying interpretations by both government authorities and taxpayers. The Company remits a variety of taxes and fees to various governmental authorities, including excise taxes, property taxes, sales and use taxes, and payroll taxes. The taxes and fees remitted by the Company are subject to review and audit by the applicable governmental authorities which could assert claims for additional assessments. Although management believes that the tax positions are reasonable and consequently there are no accrued liabilities for claims which may may may The Company is subject to unclaimed or abandoned property (escheat) laws which require the Company to turn over to certain state governmental authorities the property of others held by the Company that has been unclaimed for specified periods of time. The Company is subject to audit by individual U.S. states with regard to its escheatment practices. The Company sells a considerable number of gift cards, which are issued and administered by a third third third June 2013 $30 March 2014, August 2016, October 2016. April 2017, May 1, 2017, The Company currently buys a majority of its beef from two |
Significant Accounting Policies
Significant Accounting Policies (Policies) | 3 Months Ended |
Mar. 26, 2017 | |
Accounting Policies [Abstract] | |
Basis of Accounting, Policy [Policy Text Block] | The accompanying unaudited condensed consolidated financial statements of Ruth’s Hospitality Group, Inc. and its subsidiaries (collectively, the Company) as of March 26, 2017 December 27, 2015 thirteen March 26, 2017 March 27, 2016 Ruth’s Hospitality Group, Inc. is a restaurant company focused on the upscale dining segment. Ruth’s Hospitality Group, Inc. operates Company-owned Ruth’s Chris Steak House restaurants and sells franchise rights to Ruth’s Chris Steak House franchisees giving the franchisees the exclusive right to operate similar restaurants in a particular area designated in the franchise agreement. As of March 26, 2017, 153 70 two 81 20 New January 2017 March 2017. A January 2017. The information furnished herein reflects all adjustments (consisting of normal recurring accruals and adjustments), which are, in the opinion of management, necessary to fairly present the operating results for the respective periods. The interim results of operations for the periods ended March 26, 2017 March 27, 2016 may 10 December 25, 2016. The Company operates on a 52 53 December. March 26, 2017 March 27, 2016 thirteen first 2017 first 2016, 2017 53 2016 52 |
Use of Estimates, Policy [Policy Text Block] | Estimates Management of the Company has made a number of estimates and assumptions relating to the reporting of assets and liabilities, the disclosure of contingent assets and liabilities at the date of the condensed consolidated financial statements and the reporting of revenue and expenses during the periods to prepare these condensed consolidated financial statements in conformity with U.S. generally accepted accounting principles. Significant items subject to such estimates and assumptions include the carrying amounts of property and equipment, goodwill, franchise rights, and obligations related to gift cards, incentive compensation, workers’ compensation and medical insurance. Actual results could differ from those estimates. |
New Accounting Pronouncements, Policy [Policy Text Block] | Recent Accounting Pronouncements for Future Application In May 2014, 2014 09, 2014 09), December 15, 2017, first 2018. 2014 09, $3 $6 2014 09 $1.3 $1.4 2016 2015, 2014 09 In February 2016, 2016 02, 842). December 15, 2018, first 2019 2016 02 1) 2) In August 2016 2016 15, 230). December 15, 2017. 2016 15 In October 2016, 2016 16, 740). December 15, 2017, first 2018 In January 2017, 2017 04, 350). two one 2017 04 December 15, 2019 first January 1, 2017. 2017 04 |
Note 3 - Discontinued Operati20
Note 3 - Discontinued Operations (Tables) | 3 Months Ended |
Mar. 26, 2017 | |
Notes Tables | |
Disposal Groups, Including Discontinued Operations [Table Text Block] | 13 Weeks Ended March 26, March 27, 2017 2016 Revenues Mitchell's Restaurants $ - $ - Other Restaurants - - Total revenues - - Costs and expenses Recurring costs and expenses Mitchell's Restaurants 33 29 Other Restaurants 27 168 Total costs and expenses 60 197 Loss before income taxes (60 ) (197 ) Income tax benefit (23 ) (77 ) Loss from discontinued operations, net of income taxes $ (37 ) $ (120 ) |
Note 4 - Long-term Debt (Tables
Note 4 - Long-term Debt (Tables) | 3 Months Ended |
Mar. 26, 2017 | |
Notes Tables | |
Schedule of Long-term Debt Instruments [Table Text Block] | March 26, December 25, 2017 2016 Senior Credit Facility: Revolving credit facility $ 14,000 $ 25,000 Less current maturities - - $ 14,000 $ 25,000 |
Note 5 - Shareholders' Equity (
Note 5 - Shareholders' Equity (Tables) | 3 Months Ended |
Mar. 26, 2017 | |
Notes Tables | |
Schedule of Dividends Payable [Table Text Block] | Declaration Date Dividend per Share Record Date Total Amount Payment Date Fiscal Year 2017: February 17, 2017 $ 0.09 February 23, 2017 $ 2,862 March 9, 2017 Fiscal Year 2016: February 12, 2016 $ 0.07 February 25, 2016 $ 2,350 March 10, 2016 |
Note 7 - Segment Information (T
Note 7 - Segment Information (Tables) | 3 Months Ended |
Mar. 26, 2017 | |
Notes Tables | |
Reconciliation of Operating Profit (Loss) from Segments to Consolidated [Table Text Block] | 13 Weeks Ended March 26, March 27, 2017 2016 Revenues: Company-owned steakhouse restaurants $ 100,174 $ 96,515 Franchise operations 4,390 4,501 Unallocated other revenue and revenue discounts 974 874 Total revenues $ 105,538 $ 101,890 Segment profits: Company-owned steakhouse restaurants $ 26,148 $ 24,148 Franchise operations 4,390 4,501 Total segment profit 30,538 28,649 Unallocated operating income 974 874 Marketing and advertising expenses (2,446 ) (1,970 ) General and administrative costs (8,137 ) (7,664 ) Depreciation and amortization expenses (3,505 ) (3,101 ) Pre-opening costs (1,179 ) (354 ) Interest expense, net (179 ) (213 ) Other income 24 7 Income from continuing operations before income tax expense $ 16,090 $ 16,228 Capital expenditures: Company-owned steakhouse restaurants $ 6,873 $ 5,996 Corporate assets 297 152 Total capital expenditures $ 7,170 $ 6,148 |
Reconciliation of Assets from Segment to Consolidated [Table Text Block] | March 26, December 25, 2017 2016 Total assets: Company-owned steakhouse restaurants $ 180,424 $ 185,820 Franchise operations 1,977 2,707 Corporate assets - unallocated 5,041 9,021 Deferred income taxes - unallocated 9,382 9,924 Total assets $ 196,824 $ 207,472 |
Note 9 - Income Taxes (Tables)
Note 9 - Income Taxes (Tables) | 3 Months Ended |
Mar. 26, 2017 | |
Notes Tables | |
Schedule of Effective Income Tax Rate Reconciliation [Table Text Block] | 13 Weeks Ended March 26, March 27, 2017 2016 Income tax expense at statutory rates 35.0 % 35.0 % Increase (decrease) in income taxes resulting from: State income taxes, net of federal benefit 3.0 % 4.2 % Federal employment tax credits (6.8 %) (6.8 %) Other (0.1 %) 0.5 % Effective tax rate 31.1 % 32.9 % |
Note 10 - Earnings Per Share (T
Note 10 - Earnings Per Share (Tables) | 3 Months Ended |
Mar. 26, 2017 | |
Notes Tables | |
Schedule of Earnings Per Share, Basic and Diluted [Table Text Block] | 13 Weeks Ended March 26, March 27, 2017 2016 Income from continuing operations $ 11,085 $ 10,882 Loss from discontinued operations, net of income taxes (37 ) (120 ) Net income $ 11,048 $ 10,762 Shares: Weighted average number of common shares outstanding - basic 30,575,224 32,626,645 Weighted average number of common shares outstanding - diluted 31,253,186 33,073,660 Basic earnings (loss) per common share: Continuing operations $ 0.36 $ 0.33 Discontinued operations - - Basic earnings per common share $ 0.36 $ 0.33 Diluted earnings (loss) per common share: Continuing operations $ 0.35 $ 0.33 Discontinued operations - - Diluted earnings per common share $ 0.35 $ 0.33 |
Note 1 - The Company and Basi26
Note 1 - The Company and Basis of Presentation (Details Textual) $ in Millions | 1 Months Ended | 3 Months Ended | 12 Months Ended | |||
Mar. 31, 2017 | Jan. 31, 2017 | Mar. 25, 2018USD ($) | Dec. 25, 2016USD ($) | Dec. 27, 2015USD ($) | Mar. 26, 2017 | |
Advertising Contributions from Franchisees | $ 1.3 | $ 1.4 | ||||
Minimum [Member] | Accounting Standards Update 2014-09 [Member] | Scenario, Forecast [Member] | Increase in Deferred Revenue Liability [Member] | ||||||
New Accounting Pronouncement or Change in Accounting Principle, Effect of Adoption, Quantification | $ 3 | |||||
Maximum [Member] | Accounting Standards Update 2014-09 [Member] | Scenario, Forecast [Member] | Increase in Deferred Revenue Liability [Member] | ||||||
New Accounting Pronouncement or Change in Accounting Principle, Effect of Adoption, Quantification | $ 6 | |||||
Entity Operated Units [Member] | ||||||
Number of Restaurants | 70 | |||||
Entity Operated Units [Member] | Waltham, MA [Member] | ||||||
Number of Restaurants Opened During Period | 1 | |||||
Entity Operated Units [Member] | Cleveland, OH [Member] | ||||||
Number of Restaurants Opened During Period | 1 | |||||
Operated under Contractual Agreements [Member] | ||||||
Number of Restaurants | 2 | |||||
Franchised Units [Member] | International [Member] | ||||||
Number of Restaurants | 20 | |||||
Contractual Agreement [Member] | Tulsa, OK [Member] | ||||||
Number of Restaurants Opened During Period | 1 | |||||
Ruths Chris Steak House [Member] | ||||||
Number of Restaurants | 153 | |||||
Ruths Chris Steak House [Member] | Entity Operated Units [Member] | ||||||
Number of Restaurants | 70 | |||||
Ruths Chris Steak House [Member] | Franchised Units [Member] | ||||||
Number of Restaurants | 81 | 81 |
Note 2 - Mitchell's Restauran27
Note 2 - Mitchell's Restaurants (Details Textual) $ in Thousands | 3 Months Ended | 12 Months Ended | ||||
Mar. 26, 2017USD ($) | Mar. 27, 2016USD ($) | Dec. 27, 2015USD ($) | Jan. 21, 2015 | Dec. 28, 2014 | Nov. 30, 2014USD ($) | |
Lease Obligations Guaranteed | $ 34,700 | |||||
Interest Expense | 179 | $ 213 | ||||
General and Administrative Expense | $ 8,137 | $ 7,664 | ||||
Mitchells Restaurants [Member] | ||||||
Number of Restaurants | 21 | |||||
Disposal Group, Including Discontinued Operation, Consideration | $ 10,000 | |||||
Interest Expense | $ 0 | |||||
General and Administrative Expense | $ 0 | |||||
Mitchells Fish Market [Member] | Company-owned Fish Market Restaurants [Member] | ||||||
Number of Restaurants | 18 | |||||
Camerons Mitchell Steak house [Member] | Company-owned Steakhouse Restaurants [Member] | ||||||
Number of Restaurants | 3 |
Note 3 - Discontinued Operati28
Note 3 - Discontinued Operations - Summary of Discontinued Operations (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 26, 2017 | Mar. 27, 2016 | |
Revenues | ||
Recurring costs and expenses | 60 | 197 |
Loss before income taxes | (60) | (197) |
Income tax benefit | (23) | (77) |
Loss from discontinued operations, net of income taxes | (37) | (120) |
Mitchells Restaurants [Member] | ||
Revenues | ||
Recurring costs and expenses | 33 | 29 |
Other Restaurants [Member] | ||
Revenues | ||
Recurring costs and expenses | $ 27 | $ 168 |
Note 4 - Long-term Debt (Detail
Note 4 - Long-term Debt (Details Textual) - USD ($) $ in Millions | Feb. 02, 2017 | Feb. 14, 2012 | Mar. 26, 2017 |
Long-term Debt, Weighted Average Interest Rate, at Point in Time | 2.30% | ||
Senior Credit Facility [Member] | |||
Long-term Line of Credit | $ 14 | ||
Line of Credit Facility, Remaining Borrowing Capacity | $ 71.4 | ||
Line of Credit Facility, Unused Capacity, Commitment Fee Percentage | 0.20% | ||
Senior Credit Facility [Member] | London Interbank Offered Rate (LIBOR) [Member] | Minimum [Member] | Amended And Restated Credit Agreement [Member] | |||
Debt Instrument, Basis Spread on Variable Rate | 2.00% | ||
Senior Credit Facility [Member] | London Interbank Offered Rate (LIBOR) [Member] | Maximum [Member] | Amended And Restated Credit Agreement [Member] | |||
Debt Instrument, Basis Spread on Variable Rate | 2.75% | ||
Senior Credit Facility [Member] | Base Rate [Member] | Minimum [Member] | Amended And Restated Credit Agreement [Member] | |||
Debt Instrument, Basis Spread on Variable Rate | 1.00% | ||
Senior Credit Facility [Member] | Base Rate [Member] | Maximum [Member] | Amended And Restated Credit Agreement [Member] | |||
Debt Instrument, Basis Spread on Variable Rate | 1.75% | ||
Letter of Credit [Member] | |||
Letters of Credit Outstanding, Amount | $ 4.6 | ||
Long-term Debt, Weighted Average Interest Rate, at Point in Time | 1.60% | ||
Line of Credit Facility, Maximum Borrowing Capacity | $ 100 | ||
Letter of Credit [Member] | Credit Agreement [Member] | Wells Fargo Bank, National Association and Other Lenders [Member] | |||
Line of Credit Facility, Maximum Borrowing Capacity | $ 5 | ||
Revolving Credit Facility [Member] | Credit Agreement [Member] | Wells Fargo Bank, National Association and Other Lenders [Member] | |||
Line of Credit Facility, Maximum Borrowing Capacity | 90 | ||
Line of Credit Facility, Maximum Borrowing Capacity upon Satisfaction of Certain Conditions | $ 150 | ||
Revolving Credit Facility [Member] | London Interbank Offered Rate (LIBOR) [Member] | Credit Agreement [Member] | |||
Debt Instrument, Basis Spread Added to Reference Rate to Compute Base Rate | 1.00% | ||
Revolving Credit Facility [Member] | London Interbank Offered Rate (LIBOR) [Member] | Minimum [Member] | Credit Agreement [Member] | |||
Debt Instrument, Basis Spread on Variable Rate | 1.50% | ||
Revolving Credit Facility [Member] | London Interbank Offered Rate (LIBOR) [Member] | Maximum [Member] | Credit Agreement [Member] | |||
Debt Instrument, Basis Spread on Variable Rate | 2.25% | ||
Revolving Credit Facility [Member] | Base Rate [Member] | Minimum [Member] | Credit Agreement [Member] | |||
Debt Instrument, Basis Spread on Variable Rate | 0.50% | ||
Revolving Credit Facility [Member] | Base Rate [Member] | Maximum [Member] | Credit Agreement [Member] | |||
Debt Instrument, Basis Spread on Variable Rate | 1.25% | ||
Revolving Credit Facility [Member] | Prime Rate [Member] | Credit Agreement [Member] | |||
Debt Instrument, Basis Spread Added to Reference Rate to Compute Base Rate | 0.50% | ||
Swingline Loans [Member] | Credit Agreement [Member] | Wells Fargo Bank, National Association and Other Lenders [Member] | |||
Line of Credit Facility, Maximum Borrowing Capacity | $ 5 |
Note 4 - Long-term Debt - Summa
Note 4 - Long-term Debt - Summary of Long-term Debt (Details) - USD ($) $ in Thousands | Mar. 26, 2017 | Dec. 25, 2016 |
Revolving credit facility | $ 14,000 | $ 25,000 |
Less current maturities | ||
$ 14,000 | $ 25,000 |
Note 5 - Shareholders' Equity31
Note 5 - Shareholders' Equity (Details Textual) - USD ($) $ / shares in Units, $ in Millions | Mar. 27, 2017 | Mar. 26, 2017 | Mar. 27, 2016 | May 04, 2017 | Apr. 30, 2016 |
Common Stock, Dividends, Per Share, Declared | $ 0.09 | $ 0.07 | |||
Restricted Stock [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number | 1,275,849 | ||||
Subsequent Event [Member] | |||||
Common Stock, Dividends, Per Share, Declared | $ 0.09 | ||||
Dividends Payable, Current | $ 2.9 | ||||
The 2016 Share Repurchase Plan [Member] | |||||
Stock Repurchase Program, Authorized Amount | $ 60 |
Note 5 - Shareholders' Equity -
Note 5 - Shareholders' Equity - Dividends Declared (Details) - Dividend Declared 1 [Member] - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | |
Mar. 26, 2017 | Mar. 27, 2016 | |
Dividend Per Share (in dollars per share) | $ 0.09 | $ 0.07 |
Record Date | Feb. 23, 2017 | Feb. 25, 2016 |
Total Amount | $ 2,862 | $ 2,350 |
Payment Date | Mar. 9, 2017 | Mar. 10, 2016 |
Note 6 - Fair Value Measureme33
Note 6 - Fair Value Measurements (Details Textual) - USD ($) $ in Thousands | Mar. 26, 2017 | Dec. 25, 2016 |
Liabilities, Fair Value Disclosure, Nonrecurring | $ 0 | $ 0 |
Assets, Fair Value Disclosure, Nonrecurring | $ 0 | $ 0 |
Note 7 - Segment Information (D
Note 7 - Segment Information (Details Textual) | 3 Months Ended | |
Mar. 26, 2017 | Mar. 31, 2017 | |
Number of Operating Segments | 2 | |
Ruths Chris Steak House [Member] | ||
Number of Restaurants | 153 | |
Entity Operated Units [Member] | ||
Number of Restaurants | 70 | |
Entity Operated Units [Member] | Ruths Chris Steak House [Member] | ||
Number of Restaurants | 70 | |
Operated under Contractual Agreements [Member] | ||
Number of Restaurants | 2 | |
Franchised Units [Member] | Ruths Chris Steak House [Member] | ||
Number of Restaurants | 81 | 81 |
Note 7 - Segment Information -
Note 7 - Segment Information - Segment Information, Operating Profit (Loss) (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 26, 2017 | Mar. 27, 2016 | |
Revenues: | ||
Revenues | $ 105,538 | $ 101,890 |
Segment profits: | ||
Gross profit | 30,538 | 28,649 |
Unallocated operating income | 974 | 874 |
Marketing and advertising expenses | (2,446) | (1,970) |
General and administrative costs | (8,137) | (7,664) |
Depreciation and amortization expenses | (3,505) | (3,101) |
Pre-opening costs | (1,179) | (354) |
Interest expense, net | (179) | (213) |
Other | 24 | 7 |
Income from continuing operations before income tax expense | 16,090 | 16,228 |
Capital expenditures: | ||
Capital expenditure | 7,170 | 6,148 |
Operating Segments [Member] | Company-owned Steakhouse Restaurants [Member] | ||
Revenues: | ||
Revenues | 100,174 | 96,515 |
Segment profits: | ||
Gross profit | 26,148 | 24,148 |
Capital expenditures: | ||
Capital expenditure | 6,873 | 5,996 |
Operating Segments [Member] | Franchise Operations [Member] | ||
Revenues: | ||
Revenues | 4,390 | 4,501 |
Segment profits: | ||
Gross profit | 4,390 | 4,501 |
Segment Reconciling Items [Member] | ||
Revenues: | ||
Revenues | 974 | 874 |
Corporate, Non-Segment [Member] | ||
Capital expenditures: | ||
Capital expenditure | $ 297 | $ 152 |
Note 7 - Segment Information 36
Note 7 - Segment Information - Segment Information, Assets (Details) - USD ($) $ in Thousands | Mar. 26, 2017 | Dec. 25, 2016 |
Assets | $ 196,824 | $ 207,472 |
Operating Segments [Member] | Company-owned Steakhouse Restaurants [Member] | ||
Assets | 180,424 | 185,820 |
Operating Segments [Member] | Franchise Operations [Member] | ||
Assets | 1,977 | 2,707 |
Corporate, Non-Segment [Member] | ||
Assets | 5,041 | 9,021 |
Deferred income taxes - unallocated | $ 9,382 | $ 9,924 |
Note 8 - Stock-based Employee37
Note 8 - Stock-based Employee Compensation (Details Textual) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 26, 2017 | Mar. 27, 2016 | |
Allocated Share-based Compensation Expense | $ 1.6 | $ 1.3 |
Restricted Stock [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number | 1,275,849 | |
Long-term Equity Incentive Plan 2005 [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Number | 73,794 | |
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Available for Grant | 1,786,050 | |
Stock Issued During Period, Shares, Restricted Stock Award, Gross | 207,025 | |
Long-term Equity Incentive Plan 2005 [Member] | Share-based Compensation Award, Tranche One [Member] | ||
Stock Issued During Period, Shares, Restricted Stock Award, Gross | 36,724 | |
Long-term Equity Incentive Plan 2005 [Member] | Share-based Compensation Award, Tranche Two [Member] | ||
Stock Issued During Period, Shares, Restricted Stock Award, Gross | 133,577 | |
Long-term Equity Incentive Plan 2005 [Member] | Share-based Compensation Award, Tranche Three [Member] | ||
Stock Issued During Period, Shares, Restricted Stock Award, Gross | 36,724 | |
Long-term Equity Incentive Plan 2005 [Member] | Restricted Stock [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number | 1,275,849 |
Note 9 - Income Taxes - Reconci
Note 9 - Income Taxes - Reconciliation of the U.S. Statutory Rate to the Effective Rate (Details) | 3 Months Ended | |
Mar. 26, 2017 | Mar. 27, 2016 | |
Income tax expense at statutory rates | 35.00% | 35.00% |
Increase (decrease) in income taxes resulting from: | ||
State income taxes, net of federal benefit | 3.00% | 4.20% |
Federal employment tax credits | (6.80%) | (6.80%) |
Other | (0.10%) | 0.50% |
Effective tax rate | 31.10% | 32.90% |
Note 10 - Earnings Per Share (D
Note 10 - Earnings Per Share (Details Textual) - $ / shares | 3 Months Ended | |
Mar. 26, 2017 | Mar. 27, 2016 | |
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | 4,641 | 24,829 |
Weighted Average Exercise Prices Anti Dilutive Stock Options | $ 19.51 | $ 19.05 |
Note 10 - Earnings Per Share -
Note 10 - Earnings Per Share - Computation of Basic and Diluted Earnings Per Share (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | |
Mar. 26, 2017 | Mar. 27, 2016 | |
Income from continuing operations | $ 11,085 | $ 10,882 |
Loss from discontinued operations, net of income taxes | (37) | (120) |
Net income | $ 11,048 | $ 10,762 |
Basic (in shares) | 30,575,224 | 32,626,645 |
Weighted average number of common shares outstanding - diluted (in shares) | 31,253,186 | 33,073,660 |
Continuing operations (in dollars per share) | $ 0.36 | $ 0.33 |
Discontinued operations (in dollars per share) | ||
Basic earnings per common share (in dollars per share) | 0.36 | 0.33 |
Diluted earnings (loss) per common share: | ||
Continuing operations (in dollars per share) | 0.35 | 0.33 |
Discontinued operations (in dollars per share) | ||
Diluted earnings per common share (in dollars per share) | $ 0.35 | $ 0.33 |
Note 11 - Commitments and Con41
Note 11 - Commitments and Contingencies (Details Textual) | Mar. 26, 2017 |
Number of Suppliers | 2 |