Document And Entity Information
Document And Entity Information - shares | 3 Months Ended | |
Mar. 28, 2021 | Apr. 30, 2021 | |
Document Information [Line Items] | ||
Entity Registrant Name | Ruth’s Hospitality Group, Inc. | |
Entity Central Index Key | 0001324272 | |
Trading Symbol | RUTH | |
Current Fiscal Year End Date | --12-26 | |
Entity Filer Category | Accelerated Filer | |
Document Type | 10-Q | |
Document Period End Date | Mar. 28, 2021 | |
Document Fiscal Year Focus | 2021 | |
Document Fiscal Period Focus | Q1 | |
Amendment Flag | false | |
Entity Shell Company | false | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Current Reporting Status | Yes | |
Entity File Number | 000-51485 | |
Entity Tax Identification Number | 72-1060618 | |
Entity Address, Address Line One | 1030 W. Canton Avenue | |
Entity Address, Address Line Two | Suite 100 | |
Entity Address, City or Town | Winter Park | |
Entity Address, State or Province | FL | |
Entity Address, Postal Zip Code | 32789 | |
City Area Code | 407 | |
Local Phone Number | 333-7440 | |
Entity Interactive Data Current | Yes | |
Document Quarterly Report | true | |
Document Transition Report | false | |
Title of 12(b) Security | Common Stock, par value $0.01 per share | |
Security Exchange Name | NASDAQ | |
Entity Incorporation, State or Country Code | DE | |
Common Stock [Member] | ||
Document Information [Line Items] | ||
Entity Common Stock, Shares Outstanding (in shares) | 34,990,319 | |
Unvested Restricted Stock [Member] | ||
Document Information [Line Items] | ||
Entity Common Stock, Shares Outstanding (in shares) | 623,139 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets (Current Period Unaudited) - USD ($) $ in Thousands | Mar. 28, 2021 | Dec. 27, 2020 |
Current assets: | ||
Cash and cash equivalents | $ 112,318 | $ 95,402 |
Accounts receivable, less allowance for doubtful accounts 2021 - $266; 2020 - $322 | 16,296 | 24,309 |
Inventory | 7,188 | 6,930 |
Prepaid expenses and other | 2,860 | 3,653 |
Total current assets | 138,662 | 130,294 |
Property and equipment, net of accumulated depreciation 2021 - $181,747; 2020 - $177,277 | 115,745 | 119,887 |
Operating lease right of use assets | 185,789 | 188,386 |
Goodwill | 45,549 | 45,549 |
Deferred income taxes | 8,009 | 8,616 |
Other assets | 1,355 | 1,344 |
Total assets | 543,114 | 542,674 |
Current liabilities: | ||
Accounts payable | 6,262 | 4,101 |
Accrued payroll | 12,740 | 15,344 |
Accrued expenses | 6,220 | 6,449 |
Deferred revenue | 54,569 | 59,030 |
Current operating lease liabilities | 20,022 | 20,854 |
Other current liabilities | 3,338 | 2,543 |
Total current liabilities | 103,151 | 108,321 |
Long-term debt | 115,000 | 115,000 |
Operating lease liabilities | 206,434 | 209,654 |
Unearned franchise fees | 2,128 | 2,186 |
Other liabilities | 69 | 69 |
Total liabilities | 426,782 | 435,230 |
Commitments and contingencies (Note 11) | ||
Shareholders' equity: | ||
Common stock, par value $.01 per share; 100,000,000 shares authorized, 34,384,707 shares issued and outstanding at March 28, 2021, 34,256,921 shares issued and outstanding at December 27, 2020 | 344 | 343 |
Additional paid-in capital | 83,186 | 83,424 |
Retained earnings | 32,802 | 23,677 |
Treasury stock, at cost; 71,950 shares at March 28, 2021 and December 27, 2020 | ||
Total shareholders' equity | 116,332 | 107,444 |
Total liabilities and shareholders' equity | 543,114 | 542,674 |
Franchise Rights [Member] | ||
Current assets: | ||
Intangible assets, net of accumulated amortization | 43,923 | 44,484 |
Other Intangible Assets [Member] | ||
Current assets: | ||
Intangible assets, net of accumulated amortization | $ 4,082 | $ 4,114 |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (Current Period Unaudited) (Parentheticals) - USD ($) $ in Thousands | Mar. 28, 2021 | Dec. 27, 2020 |
Allowance for doubtful accounts | $ 266 | $ 322 |
Property and equipment, accumulated depreciation | $ 181,747 | $ 177,277 |
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) | 34,384,707 | 34,256,921 |
Common stock, shares outstanding (in shares) | 34,384,707 | 34,256,921 |
Treasury stock, shares (in shares) | 71,950 | 71,950 |
Franchise Rights [Member] | ||
Finite-lived intangible assets, accumulated amortization | $ 7,095 | $ 6,534 |
Other Intangible Assets [Member] | ||
Finite-lived intangible assets, accumulated amortization | $ 1,601 | $ 1,569 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Operations (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 28, 2021 | Mar. 29, 2020 | |
Revenues: | ||
Revenues | $ 87,283 | $ 108,536 |
Costs and expenses: | ||
Marketing and advertising | 1,993 | 3,438 |
General and administrative costs | 7,196 | 8,031 |
Depreciation and amortization expenses | 5,063 | 5,822 |
Pre-opening costs | 445 | 477 |
Loss on impairment | 8,697 | |
Total costs and expenses | 75,201 | 112,645 |
Operating income (loss) | 12,082 | (4,109) |
Other income (expense): | ||
Interest expense, net | (1,303) | (628) |
Other | 44 | 33 |
Income (loss) before income taxes | 10,823 | (4,704) |
Income tax expense (benefit) | 1,698 | (886) |
Net income (loss) | $ 9,125 | $ (3,818) |
Basic earnings (loss) per common share | $ 0.27 | $ (0.13) |
Diluted earnings (loss) per common share | $ 0.26 | $ (0.13) |
Shares used in computing earnings (loss) per common share: | ||
Basic (in shares) | 34,282,733 | 28,287,261 |
Diluted (in shares) | 34,599,764 | 28,287,261 |
Cash dividends declared per common share | $ 0.15 | |
Restaurant Sales [Member] | ||
Revenues: | ||
Revenues | $ 81,636 | $ 103,040 |
Franchise Income [Member] | ||
Revenues: | ||
Revenues | 3,792 | 3,626 |
Other Operating Income [Member] | ||
Revenues: | ||
Revenues | 1,855 | 1,870 |
Food and Beverage [Member] | ||
Costs and expenses: | ||
Cost of goods sold | 22,921 | 30,626 |
Restaurant Operating Expenses [Member] | ||
Costs and expenses: | ||
Cost of goods sold | $ 37,583 | $ 55,554 |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Shareholders' Equity (Unaudited) - USD ($) shares in Thousands, $ in Thousands | Total | Common Stock [Member] | Additional Paid-in Capital [Member] | Retained Earnings [Member] | Treasury Stock [Member] |
Balance at Dec. 29, 2019 | $ 94,145 | $ 284 | $ 40,462 | $ 53,399 | |
Balance (in shares) at Dec. 29, 2019 | 28,419 | 72 | |||
Net income (loss) | (3,818) | (3,818) | |||
Cash dividends | (4,428) | (4,428) | |||
Repurchase of common stock | (13,226) | $ (9) | (13,217) | ||
Repurchase of common stock (in shares) | (902) | ||||
Shares issued under stock compensation plan net of shares withheld for tax effects | (658) | $ 1 | (659) | ||
Shares issued under stock compensation plan net of shares withheld for tax effects (in shares) | 100 | ||||
Stock-based compensation | 2,065 | 2,065 | |||
Balance at Mar. 29, 2020 | 74,081 | $ 276 | 28,652 | 45,153 | |
Balance (in shares) at Mar. 29, 2020 | 27,617 | 72 | |||
Balance at Dec. 27, 2020 | 107,444 | $ 343 | 83,424 | 23,677 | |
Balance (in shares) at Dec. 27, 2020 | 34,257 | 72 | |||
Net income (loss) | 9,125 | 9,125 | |||
Shares issued under stock compensation plan net of shares withheld for tax effects | (1,801) | $ 1 | (1,802) | ||
Shares issued under stock compensation plan net of shares withheld for tax effects (in shares) | 128 | ||||
Stock-based compensation | 1,564 | 1,564 | |||
Balance at Mar. 28, 2021 | $ 116,332 | $ 344 | $ 83,186 | $ 32,802 | |
Balance (in shares) at Mar. 28, 2021 | 34,385 | 72 |
Condensed Consolidated Statem_3
Condensed Consolidated Statements of Shareholders' Equity (Unaudited) (Parentheticals) | 3 Months Ended |
Mar. 29, 2020$ / shares | |
Statement Of Stockholders Equity [Abstract] | |
Common Stock, Dividends, Per Share, Cash Paid | $ 0.15 |
Condensed Consolidated Statem_4
Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 28, 2021 | Mar. 29, 2020 | |
Cash flows from operating activities: | ||
Net income (loss) | $ 9,125 | $ (3,818) |
Adjustments to reconcile net income (loss) to net cash provided by operating activities: | ||
Depreciation and amortization | 5,063 | 5,822 |
Deferred income taxes | 607 | (1,973) |
Non-cash interest expense | 108 | 24 |
Loss on impairment | 8,697 | |
Stock-based compensation expense | 1,564 | 2,065 |
Changes in operating assets and liabilities: | ||
Accounts receivable | 8,013 | 17,076 |
Inventories | (258) | 1,174 |
Prepaid expenses and other | 794 | 139 |
Other assets | 11 | |
Accounts payable and accrued expenses | (430) | (21,333) |
Deferred revenue | (4,461) | (5,453) |
Operating lease liabilities and assets | (1,454) | 3,119 |
Other liabilities | 526 | 1,026 |
Net cash provided by operating activities | 19,208 | 6,565 |
Cash flows from investing activities: | ||
Acquisition of property and equipment | (359) | (3,928) |
Net cash used in investing activities | (359) | (3,928) |
Cash flows from financing activities: | ||
Principal borrowings on long-term debt | 85,000 | |
Principal repayments on long-term debt | (4,000) | |
Repurchase of common stock | (13,226) | |
Cash dividend payments | (4,428) | |
Tax payments from the vesting of restricted stock and option exercises | (1,801) | (658) |
Deferred financing costs | (132) | (100) |
Net cash (used in) provided by financing activities | (1,933) | 62,588 |
Net increase in cash and cash equivalents | 16,916 | 65,225 |
Cash and cash equivalents at beginning of period | 95,402 | 5,567 |
Cash and cash equivalents at end of period | 112,318 | 70,792 |
Supplemental disclosures of cash flow information: | ||
Interest, net of capitalized interest | 1,345 | 554 |
Income taxes | 39 | 75 |
Noncash investing and financing activities: | ||
Accrued acquisition of property and equipment | $ 46 | $ 4,190 |
The Company and Basis of Presen
The Company and Basis of Presentation | 3 Months Ended |
Mar. 28, 2021 | |
Organization Consolidation And Presentation Of Financial Statements [Abstract] | |
The Company and Basis of Presentation | (1) The Company and Basis of Presentation The accompanying unaudited condensed consolidated financial statements of Ruth’s Hospitality Group, Inc. and its subsidiaries (collectively, the Company) as of March 28, 2021 and December 27, 2020 and for the thirteen week periods ended March 28, 2021 and March 29, 2020 have been prepared by the Company pursuant to the rules and regulations of the Securities and Exchange Commission (the SEC). The condensed consolidated financial statements include the financial statements of Ruth’s Hospitality Group, Inc. and its wholly owned subsidiaries. All inter-company balances and transactions have been eliminated in consolidation. 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 28, 2021, there were 149 Ruth’s Chris Steak House restaurants, including 74 Company-owned restaurants, three restaurants operating under contractual agreements and 72 franchisee-owned restaurants, including 21 international franchisee-owned restaurants in Aruba, Canada, China, Hong Kong, Indonesia, Japan, Mexico, Singapore and Taiwan. All Company-owned restaurants are located in the United States. Subsequent to the end of the quarter, the Ruth’s Chris Steak House located in Bellevue, WA permanently closed. 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 28, 2021 and March 29, 2020 are not necessarily indicative of the results that may be achieved for the full year. Certain information and footnote disclosures normally presented in annual financial statements prepared in accordance with U.S. generally accepted accounting principles (GAAP) have been condensed or omitted pursuant to the SEC’s rules and regulations. These unaudited condensed consolidated financial statements should be read in conjunction with the consolidated financial statements and notes thereto included in the Company’s Annual Report on Form 10-K for the fiscal year ended December 27, 2020. The Company operates on a 52- or 53-week fiscal year ending on the last Sunday in December. The fiscal quarters ended March 28, 2021 and March 29, 2020 each contained thirteen weeks and are referred to herein as the first quarter of fiscal year 2021 and the first quarter of fiscal year 2020, respectively. Fiscal years 2021 and 2020 are both 52-week years. COVID-19 Impact In March 2020 the World Health Organization declared the novel coronavirus 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 presented to prepare these condensed consolidated financial statements in conformity with GAAP. Significant items subject to such estimates and assumptions include the carrying amounts of property and equipment, goodwill, franchise rights, operating lease right of use assets and obligations related to gift cards, income taxes, operating lease liabilities, incentive compensation, workers’ compensation and medical insurance. Actual results could differ from those estimates. Recent Accounting Pronouncements In December 2019 the FASB issued ASU 2019-12, Income Taxes (Topic 740). This update modifies Topic 740 to simplify the accounting for income taxes. The Company adopted this new standard on December 28, 2020. The adoption of ASU 2019-12 did not have a significant impact on the Company’s financial reporting. |
Fair Value Measurements
Fair Value Measurements | 3 Months Ended |
Mar. 28, 2021 | |
Disclosure Text Block [Abstract] | |
Fair Value Measurements | (2) Fair Value Measurements 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 long-term debt as of March 28, 2021 and December 27, 2020 have variable interest rates that reflect currently available terms and conditions for similar debt. The carrying value, plus unpaid interest and deferred financing costs of $844 thousand at March 28, 2021, represents a reasonable estimate of FV (Level 2). The Company did not have any non-financial assets measured at fair value on a non-recurring basis as of March 28, 2021. The Company’s non-financial assets measured at fair value on a non-recurring basis as of December 27, 2020 were as follows (in thousands): Fair Value as of December 27, 2020 Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Total Losses on Impairment Long-lived assets $ 1,708 $ 1,708 $ — $ 12,736 Territory rights $ — $ — $ — $ 3,101 |
Leases
Leases | 3 Months Ended |
Mar. 28, 2021 | |
Leases [Abstract] | |
Leases | (3) Leases The Company leases restaurant facilities and equipment. The Company determines whether an arrangement is or contains a lease at contract inception. The Company’s leases are all classified as operating leases, which are included as ROU assets and operating lease liabilities in the Company’s condensed consolidated balance sheet. Operating lease liabilities are recognized based on the present value of future minimum lease payments over the expected lease term at commencement date. ROU assets are measured based on the operating lease liabilities adjusted for lease incentives, initial indirect costs and impairments of operating lease assets. Minimum lease payments include only the fixed lease components of the agreements, as well as any variable rate payments that depend on an index, which are measured initially using the index at the lease commencement dates. To determine the present value of future minimum lease payments, the Company estimates incremental borrowing rates based on the information available at the lease commencement dates, or amendment date for contract modifications. The Company estimates its incremental borrowing rates by determining the synthetic credit rating of the Company using quantitative and qualitative analysis and then adjusting the synthetic credit rating to a collateralized credit rating. A spread curve is then developed using the U.S. corporate bond yield curve of the same credit rating and the U.S. Treasury curve to determine the rate for different terms. The expected lease terms include options to extend when it is reasonably certain the Company will exercise the options up to a total term of 20 years. Total lease cost is expensed on a straight-line basis over the life of a lease. Additionally, incentives received from landlords used to fund leasehold improvements reduce the ROU assets related to those leases and are amortized as reductions to lease expense over the lives of the leases. Variable lease payments that do not depend on a rate or index, payments associated with non-lease components and short-term rentals (leases with terms less than 12 months) are expensed as incurred. On April 10, 2020, the FASB issued a staff Q&A (the “Staff Q&A”) to provide guidance on its remarks at the April 8, 2020 Board meeting about accounting for rent concessions resulting from the COVID-19 pandemic. The Staff Q&A affirmed the discussion at the April 8, 2020 meeting by allowing entities to forgo performing the lease-by-lease legal analysis to determine whether contractual provisions in an existing lease agreement provide enforceable rights and obligations related to lease concessions as long as the concessions are related to COVID-19 and the changes to the lease do not result in a substantial increase in the rights of the lessor or the obligations of the lessee. In addition, the Staff Q&A affirmed that entities may make an election to account for eligible concessions, regardless of their form, either by (1) applying the modification framework for these concessions in accordance with Topic 842 or (2) accounting for the concessions as if they were made under the enforceable rights included in the original agreement. Due to the impacts of the COVID-19 pandemic, the Company initiated negotiations with its landlords to modify its restaurant lease agreements. During the first quarter of 2021, the Company amended 13 leases. Where applicable, the Company has elected to account for eligible lease concessions as if they were made under the enforceable rights included in the original agreement pursuant to the Staff Q&A. As of March 28, 2021, all of the Company-owned Ruth’s Chris Steak House restaurants operated in leased premises, with the exception of the restaurant in Ft. Lauderdale, FL, which is an owned property, and the restaurants in Anaheim, CA, Lake Mary, FL, Princeton, NJ and South Barrington, IL, which operate on leased land. The leases generally provide for minimum annual rental payments with scheduled minimum rent payment increases during the terms of the leases. Certain leases also provide for rent deferral during the initial term, lease incentives in the form of tenant allowances to fund leasehold improvements, and/or contingent rent provisions based on the sales at the underlying restaurants. Most of the Company’s restaurant leases have remaining lease terms of 1 year to 20 years, some of which include options to extend the leases for 5 years or more. The Company’s lease agreements do not contain any material residual value guarantees or material restrictive covenants. As of March 28, 2021, the weighted average remaining lease term and discount rate for operating leases is 13.1 years and 5.2%, respectively. The components of lease expense are as follows (in thousands): 13 Weeks Ended 13 Weeks Ended Classification March 28, 2021 March 29, 2020 Operating lease cost Restaurant operating expenses and general and administrative costs $ 6,509 $ 7,152 Variable lease cost Restaurant operating expenses and general and administrative costs 2,945 2,726 Total lease cost $ 9,454 $ 9,878 As of March 28, 2021, maturities of lease liabilities are summarized as follows (in thousands): Operating Leases 2021, excluding first thirteen weeks ended March 28, 2021 $ 23,877 2022 26,895 2023 24,834 2024 24,380 2025 22,951 Thereafter 192,755 Total future minimum rental commitments 315,692 Imputed interest (89,236 ) $ 226,456 Supplemental cash flow information related to leases was as follows (in thousands): 13 Weeks Ended 13 Weeks Ended March 28, 2021 March 29, 2020 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 6,580 $ 6,507 Right-of-use assets obtained in exchange for lease obligations: Operating leases $ 1,092 $ 3,820 Additionally, as of March 28, 2021, the Company has executed two leases for new Ruth’s Chris Steak House Restaurant locations with undiscounted fixed payments over the initial term of $12.1 million. These leases will commence when the landlords make the properties available to the Company. These leases are expected to commence during the next 18 months. Both signed leases are expected to have an economic lease term of 20 years. The Company will assess the reasonably certain lease term at the lease commencement date. |
Revenue
Revenue | 3 Months Ended |
Mar. 28, 2021 | |
Revenue From Contract With Customer [Abstract] | |
Revenue | (4) Revenue In the following tables, the Company’s revenue is disaggregated by major component for each category on the consolidated statements of operations (in thousands). 13 Weeks Ended March 28, 2021: Domestic International Total Revenue Restaurant sales $ 81,636 $ — $ 81,636 Franchise income 3,328 464 3,792 Other operating income 1,855 — 1,855 Total revenue $ 86,819 $ 464 $ 87,283 13 Weeks Ended March 29, 2020: Domestic International Total Revenue Restaurant sales $ 103,040 $ — $ 103,040 Franchise income 3,059 567 3,626 Other operating income 1,870 — 1,870 Total revenue $ 107,969 $ 567 $ 108,536 The following table provides information about receivables and deferred revenue liabilities from contracts with customers (in thousands). March 28, December 27, 2021 2020 Accounts receivable, less allowance for doubtful accounts 2021 - $266; 2020 - $322 $ 10,208 $ 16,578 Deferred revenue $ 54,569 $ 59,030 Unearned franchise fees $ 2,128 $ 2,186 Significant changes in the deferred revenue balance and the unearned franchise fees balance during the first thirteen weeks of fiscal year 2021 are presented in the following table (in thousands). Deferred Unearned Revenue Franchise Fees Balance at December 27, 2020 $ 59,030 $ 2,186 Decreases in the beginning balance from gift card redemptions (10,668 ) — Increases due to proceeds received, excluding amounts recognized during the period 6,200 — Decreases due to recognition of franchise development and opening fees — (58 ) Increases due to proceeds received for franchise development and opening fees — — Other 7 — Balance at March 28, 2021 $ 54,569 $ 2,128 Significant changes in the deferred revenue balance and the unearned franchise fees balance during the first thirteen weeks of fiscal year 2020 are presented in the following table (in thousands). Deferred Unearned Revenue Franchise Fees Balance at December 29, 2019 $ 52,856 $ 2,489 Decreases in the beginning balance from gift card redemptions (11,522 ) — Increases due to proceeds received, excluding amounts recognized during the period 6,115 — Decreases due to recognition of franchise development and opening fees — (59 ) Increases due to proceeds received for franchise development and opening fees — — Other (46 ) — Balance at March 29, 2020 $ 47,403 $ 2,430 |
Long-term Debt
Long-term Debt | 3 Months Ended |
Mar. 28, 2021 | |
Debt Disclosure [Abstract] | |
Long-term Debt | (5) Long-term Debt Long-term debt consists of the following (in thousands): March 28, December 27, 2021 2020 Senior Credit Facility: Revolving credit facility $ 115,000 $ 115,000 Less current maturities — — $ 115,000 $ 115,000 As of March 28, 2021, the Company had $115.0 million of outstanding indebtedness under its senior credit facility with approximately $330 thousand of borrowings available, net of outstanding letters of credit of approximately $4.7 million. As of March 28, 2021, the weighted average interest rate on the Company’s outstanding debt was 4.0% and the weighted average interest rate on its outstanding letters of credit was 3.1%. In addition, the fee on the Company’s unused senior credit facility was 0.4%. On February 2, 2017, the Company entered into a senior credit facility pursuant to a credit agreement with Wells Fargo Bank, National Association as administrative agent, and certain other lenders (as amended, as of the end of the fiscal year 2020, the “Credit Agreement”). The Credit Agreement provides for a revolving credit facility of $120.0 million with a $5.0 million subfacility of letters of credit and a $5.0 million subfacility for swingline loans. The Credit Agreement has a maturity date of February 2, 2023. On January 28, 2021 the Company entered into a Sixth Amendment to Credit Agreement (“Sixth Amendment” and the Credit Agreement as amended by the Sixth Amendment, the “Amended Credit Agreement”), The Amended Credit Agreement contains customary representations and affirmative and negative covenants (including limitations on indebtedness and liens) as well as financial covenants, as described below, requiring a minimum fixed coverage charge ratio as defined in the Amended Credit Agreement (“Fixed Charge Coverage Ratio”) limiting the Company’s actual leverage ratio as defined in the Amended Credit Agreement (“Consolidated Leverage Ratio”) and requiring the Company to hold a certain specified amount of cash. The Amended 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 be accelerated by lenders holding a majority of the commitments and the lenders’ commitments may be terminated. The obligations under the Amended Credit Agreement are guaranteed by certain of the Company’s subsidiaries and are secured by a lien on substantially all of the Company’s personal property assets other than any equity interest in current and future subsidiaries of the Company. From January 28, 2021 until the Calculation Date for the fiscal quarter ending December 26, 2021, interest rates on loans under the Amended Credit Agreement are 3.00% and 2.00% above the LIBOR Rate and Base Rate, respectively, and the fee for the daily unused availability under the revolving credit facility is 0.40%. Prior to January 28, 2021, interest rates on loans under the Credit Agreement during the first quarter of fiscal year 2021 were 2.75% and 1.75% above the LIBOR Rate and Base Rate, respectively, and the fee for the daily unused availability under the revolving credit facility is 0.40%. The term “Calculation Date” means the date five (5) business days after the day on which the Company provides a compliance certificate required for its most recently ended fiscal quarter. Thereafter, and in accordance with the Amended Credit Agreement, interest rate margins and the fee for the unused commitment will be calculated based on the Consolidated Leverage Ratio, and at the Company’s option, revolving loans may bear interest at either: (i) LIBOR, plus an applicable margin, or (ii) the highest of (a) the rate publicly announced by Wells Fargo as its prime rate, (b) the average published federal funds rate in effect on such day plus 0.50% and (c) one month LIBOR plus 1.00%, plus an applicable margin (the rate described in this clause (ii) prior to adding the applicable margin, the “Base Rate”). The applicable margin is based on the Company’s Consolidated Leverage Ratio, ranging (a) from 1.50% to 2.50% above the applicable LIBOR rate or (b) 0.50% to 1.50% above the applicable Base Rate. Among the covenant obligations with which the Company must comply, the Amended Credit Agreement requires the Company to comply with the following: • Minimum aggregate cash holding requirements through June 2021 in an amount equal to the following amount for each month set forth below: January 2021 $50,000,000 February 2021 $50,000,000 March 2021 $50,000,000 April 2021 $40,000,000 May 2021 $40,000,000 June 2021 $40,000,000 • Commencing with the fiscal quarter ending June 27, 2021, a Fixed Charge Coverage Ratio of not less than 1.25 to 1.00 on an annualized basis, which will exclude the impact of fiscal year 2020 and first fiscal quarter of 2021, through the end of fiscal year 2021, and on an actual basis thereafter. • Commencing with the second fiscal quarter ending June 27, 2021, a Consolidated Leverage Ratio not to exceed the following thresholds for the periods indicated: Period Maximum Ratio The last day of the second Fiscal Quarter of the 2021 Fiscal Year 5.00 to 1.00 The last day of the third Fiscal Quarter of the 2021 Fiscal Year 4.50 to 1.00 The last day of the fourth Fiscal Quarter of the 2021 Fiscal Year 4.00 to 1.00 The last day of the first Fiscal Quarter of the 2022 Fiscal Year and thereafter 3.00 to 1.00 For purposes of calculating required compliance with the maximum ratio, the Consolidated Leverage Ratio will be calculated on an annualized basis, which will exclude the impact of fiscal year 2020 and first fiscal quarter of 2021, through the end of fiscal year 2021, and on an actual basis thereafter. Under the Amended Credit Agreement, the Fixed Charge Coverage Ratio and Consolidated Leverage Ratio requirements remain in effect through maturity of the loan on February 2, 2023, but the minimum cash holding requirement ends in June 2021. Beginning in fiscal year 2022, the Amended Credit Agreement provides that the Company and its subsidiaries may make capital expenditures in any fiscal year in an amount equal to 75% of consolidated EBITDA for the immediately preceding fiscal year when the Consolidated Leverage Ratio is equal to or greater than 1.50 to 1.0, but less than 2.50 to 1.0. When the Consolidated Leverage Ratio is less than 1.50 to 1.0, the Company and its subsidiaries may make capital expenditures in an unlimited amount. For purposes of determining to what extent capital expenditures may be made, the Consolidated Leverage Ratio will be calculated on an actual basis rather than on an annualized basis. The Company currently is prohibited from paying any dividends or repurchasing any shares of its common stock if the Company cannot demonstrate that its Consolidated Leverage Ratio is less than 2.50 to 1.00 (both before and after giving effect to the proposed repurchase or dividend). Subsequent to the end of the first fiscal quarter 2021, the Company entered into a Seventh Amendment to Credit Agreement (“Seventh Amendment”), which amends its existing $110.0 million Amended Credit Agreement. The Seventh Amendment increases the permitted growth-related capital expenditures from $5.0 million to $20.0 million in fiscal year 2021. Beginning in fiscal year 2022, requirements for growth capital expenditures revert back to the terms in the Amended Credit Agreement when the , and growth capital expenditures will not be permitted if the Period Maximum Ratio The last day of the second Fiscal Quarter of the 2021 Fiscal Year 4.00 to 1.00 The last day of the third Fiscal Quarter of the 2021 Fiscal Year 3.50 to 1.00 The last day of the fourth Fiscal Quarter of the 2021 Fiscal Year and thereafter 3.00 to 1.00 Under the Seventh Amendment, the Fixed Charge Coverage Ratio thresholds remain the same as required under the Amended Credit Agreement. Both the Consolidated Leverage Ratio and the Fixed Charge Coverage Ratio will be calculated under the Seventh Amendment by including the results from the first quarter of fiscal year 2021. From May 4, 2021 until the Calculation Date for the fiscal quarter ending June 27, 2021, interest rates on loans under the Seventh Amendment are 2.50% and 1.50% above the LIBOR Rate and Base Rate, respectively, and the fee for the daily unused availability under the revolving credit facility is 0.40%. Thereafter, interest rate margins and the fee for the unused commitment will be calculated based on the Consolidated Leverage Ratio in accordance with the Credit Agreement. |
Shareholders' Equity
Shareholders' Equity | 3 Months Ended |
Mar. 28, 2021 | |
Stockholders Equity Note [Abstract] | |
Stockholders' Equity | (6) Shareholders’ Equity In October 2019, the Company’s Board of Directors approved a new share repurchase program under which the Company is authorized to repurchase up to $60 million of outstanding common stock from time to time. The new share repurchase program replaces the previous share repurchase program announced in October 2017, which has been terminated. As of March 28, 2021, $41.6 million remained available for future purchases under the share new repurchase program. 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 2020 February 21, 2020 $ 0.15 March 6, 2020 $ 4,428 March 20, 2020 As a result of the impacts to our business arising from the COVID-19 pandemic, the Company has suspended its share repurchase program and dividend payments. Amendments to the Company’s Credit Agreement currently prohibit the payment of dividends and share repurchases until our Consolidated Leverage Ratio (as defined in the Credit Agreement) is less than 2.50:1.00 times Bank Adjusted EBITDA. Outstanding unvested restricted stock is not included in common stock outstanding amounts. Restricted stock awards outstanding as of March 28, 2021 totaled 518,385 shares. Restricted stock units outstanding as of March 28, 2021 totaled 78,294 shares. Performance stock awards (in the form of market stock units) outstanding as of March 28, 2021 totaled 31,108 |
Segment Information
Segment Information | 3 Months Ended |
Mar. 28, 2021 | |
Segment Reporting [Abstract] | |
Segment Information | (7) Segment Information The Company has two reportable segments – the Company-owned steakhouse segment and the franchise operations segment. The Company does not rely on any major customers as a source of revenue. The Company-owned Ruth’s Chris Steak House restaurants, all of which are located in North America, operate within the full-service dining industry, providing similar products to similar customers. Revenues are derived principally from food and beverage sales. As of March 28, 2021, (i) the Company-owned steakhouse restaurant segment included 74 Ruth’s Chris Steak House restaurants and three Ruth’s Chris Steak House restaurants operating under contractual agreements and (ii) the franchise operations segment included 72 franchisee-owned Ruth’s Chris Steak House restaurants. Segment profits for the Company-owned steakhouse restaurant segments equal segment revenues less segment expenses. Segment revenues for the Company-owned steakhouse restaurants include restaurant sales, management agreement income and other restaurant income. Gift card breakage revenue is not allocated to operating segments. Not all operating expenses are allocated to operating segments. Segment expenses for the Company-owned steakhouse segment include food and beverage costs and restaurant operating expenses. No other operating costs are allocated to the Company-owned steakhouse segment for the purpose of determining segment profits because such costs are not directly related to the operation of individual restaurants. The accounting policies applicable to each segment are consistent with the policies used to prepare the consolidated financial statements. The profit of the franchise operations segment equals franchise income, which consists of franchise royalty fees and franchise opening fees. No costs are allocated to the franchise operations segment. Segment information related to the Company’s two reportable business segments follows (in thousands): 13 Weeks Ended March 28, March 29, 2021 2020 Revenues: Company-owned steakhouse restaurants $ 82,693 $ 103,971 Franchise operations 3,792 3,626 Unallocated other revenue and revenue discounts 798 939 Total revenues $ 87,283 $ 108,536 Segment profits: Company-owned steakhouse restaurants $ 22,189 $ 17,791 Franchise operations 3,792 3,626 Total segment profit 25,981 21,417 Unallocated operating income 798 939 Marketing and advertising expenses (1,993 ) (3,438 ) General and administrative costs (7,196 ) (8,031 ) Depreciation and amortization expenses (5,063 ) (5,822 ) Pre-opening costs (445 ) (477 ) Loss on impairment — (8,697 ) Interest expense, net (1,303 ) (628 ) Other income 44 33 Income (loss) before income tax expense $ 10,823 $ (4,704 ) Capital expenditures: Company-owned steakhouse restaurants $ 359 $ 3,767 Corporate assets — 161 Total capital expenditures $ 359 $ 3,928 March 28, December 27, 2021 2020 Total assets: Company-owned steakhouse restaurants $ 411,667 $ 420,245 Franchise operations 1,415 1,705 Corporate assets - unallocated 122,023 112,108 Deferred income taxes - unallocated 8,009 8,616 Total assets $ 543,114 $ 542,674 |
Stock-based Employee Compensati
Stock-based Employee Compensation | 3 Months Ended |
Mar. 28, 2021 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
Stock-Based Employee Compensation | (8) Stock-Based Employee Compensation On May 15, 2018, the Company’s stockholders approved a new 2018 Omnibus Incentive Plan (2018 Plan) which replaced the Amended and Restated 2005 Equity Incentive Plan (2005 Plan), which expired on May 30, 2018. The 2018 Plan authorizes 2.5 million shares reserved for future grants. Awards that were previously awarded under the 2005 Plan that are forfeited or cancelled in the future will be made available for grant or issuance under the 2018 Plan. The 1,649,394 shares that were authorized but unissued under the 2005 Plan as of May 15, 2018 were cancelled. As of March 28, 2021, there were no shares of common stock issuable upon exercise of currently outstanding options, and 109,984 currently outstanding unvested restricted stock awards under the 2005 Plan. As of March 28, 2021, there were 517,803 currently outstanding unvested restricted stock awards, restricted stock units, and performance stock awards under the 2018 Plan. As of March 28, 2021, the 2018 Plan has 2,207,410 shares available for future grants. During the first thirteen weeks of fiscal year 2021, the Company issued 86,676 restricted stock awards and units to directors, officers and other employees of the Company. Of the 86,676 restricted stock awards and units issued during the first thirteen weeks of fiscal year 2021, 28,881 shares will vest in fiscal year 2022, 28,881 shares will vest in fiscal year 2023, and 28,914 shares will vest in fiscal year 2024. Additionally, 2,470 shares of restricted stock granted during fiscal year 2019 and 7,802 shares of restricted stock granted during fiscal year 2020 were also fully vested in the first fiscal quarter of 2021 in accordance with the termination of an employment agreement. Total stock compensation expense recognized during the first thirteen weeks of fiscal years 2021 and 2020 was $1.6 million and $2.0 million, respectively. |
Income Taxes
Income Taxes | 3 Months Ended |
Mar. 28, 2021 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | (9) Income Taxes 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 28, March 29, 2021 2020 Income tax expense (benefit) at statutory rates 21.0 % 21.0 % Increase (decrease) in income taxes resulting from: State income taxes, net of federal benefit 4.3 % 3.1 % Federal employment tax credits (10.0 %) (4.2 %) Non-deductible executive compensation 1.6 % 0.9 % Stock-based compensation (1.1 %) (6.2 %) Other (0.1 %) 4.2 % Effective tax rate 15.7 % 18.8 % The effective tax rate of 15.7% for the quarter ended March 28, 2021 represents income tax expense of $1.7 million, while the effective tax rate of 18.8% for the quarter ended March 29, 2020 represents an income tax benefit of $886 thousand. The federal employment-related tax credits are comprised mainly of federal FICA tip credits which the Company utilizes to reduce its periodic federal income tax expense. A restaurant company employer may claim a credit against its federal income taxes for FICA taxes paid on certain wages (the FICA tip credit). The credit against income tax liability is for the full amount of eligible FICA taxes. Employers cannot deduct from taxable income the amount of FICA taxes taken into account in determining the credit. Reflected in the Other line in the effective tax rate schedule above for the quarter ended March 29, 2020 is a tax benefit of $1.8 million related to the carryback of federal NOLs under the CARES Act, and a tax expense of $1.7 million related to changes in valuation allowances against deferred tax assets for certain state NOL carryforwards. |
Earnings Per Share
Earnings Per Share | 3 Months Ended |
Mar. 28, 2021 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | (10) Earnings Per Share The following table sets forth the computation of earnings per share (amounts in thousands, except share and per share amounts): 13 Weeks Ended March 28, March 29, 2021 2020 Net income (loss) $ 9,125 $ (3,818 ) Shares: Weighted average number of common shares outstanding - basic 34,282,733 28,287,261 Weighted average number of common shares outstanding - diluted 34,599,764 28,287,261 Basic earnings (loss) per common share $ 0.27 $ (0.13 ) Diluted earnings (loss) per common share $ 0.26 $ (0.13 ) Diluted earnings per share for the first quarter of fiscal years 2021 and 2020 excludes restricted shares of 4,005 and 341,451, respectively, which were outstanding during the period but were anti-dilutive and had no exercise price. |
Commitments and Contingencies
Commitments and Contingencies | 3 Months Ended |
Mar. 28, 2021 | |
Commitments And Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | (11) Commitments and Contingencies 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 be asserted, various taxing authorities may challenge certain of the positions taken by the Company which may result in additional liability for taxes and interest. These tax positions are reviewed periodically based on the availability of new information, the lapsing of applicable statutes of limitations, the conclusion of tax audits, the identification of new tax contingencies, or the rendering of relevant court decisions. An unfavorable resolution of assessments by a governmental authority could negatively impact the Company’s results of operations and cash flows in future periods. 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. On February 26, 2018, a former restaurant hourly employee filed a class action lawsuit in the Superior Court of the State of California for the County of Riverside, alleging that the Company violated the California Labor Code and California Business and Professions Code, by failing to pay minimum wages, pay overtime wages, permit required meal and rest breaks, and provide accurate wage statements, among other claims. On September 2, 2020, the class action lawsuit was amended to include two additional proposed class representatives. This lawsuit seeks unspecified penalties under the California’s Private Attorney’s General Act in addition to other monetary payments (Quiroz Guerrero, et al. v. Ruth’s Hospitality Group, Inc., et al.; Case No RIC1804127). The parties are currently engaged in discovery and the court has set a briefing schedule on class certification for mid-2022. Although the ultimate outcome of this matter, including any possible loss, cannot be predicted or reasonably estimated at this time, we have vigorously defended this matter and intend to continue doing so. The Company currently buys a majority of its beef from two suppliers. Although there are a limited number of beef suppliers, management believes that other suppliers could provide similar product on comparable terms. A change in suppliers, however, could cause supply shortages and a possible loss of sales, which would affect operating results adversely. |
Significant Accounting Policies
Significant Accounting Policies (Policies) | 3 Months Ended |
Mar. 28, 2021 | |
Accounting Policies [Abstract] | |
Basis of Presentation | The accompanying unaudited condensed consolidated financial statements of Ruth’s Hospitality Group, Inc. and its subsidiaries (collectively, the Company) as of March 28, 2021 and December 27, 2020 and for the thirteen week periods ended March 28, 2021 and March 29, 2020 have been prepared by the Company pursuant to the rules and regulations of the Securities and Exchange Commission (the SEC). The condensed consolidated financial statements include the financial statements of Ruth’s Hospitality Group, Inc. and its wholly owned subsidiaries. All inter-company balances and transactions have been eliminated in consolidation. 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 28, 2021, there were 149 Ruth’s Chris Steak House restaurants, including 74 Company-owned restaurants, three restaurants operating under contractual agreements and 72 franchisee-owned restaurants, including 21 international franchisee-owned restaurants in Aruba, Canada, China, Hong Kong, Indonesia, Japan, Mexico, Singapore and Taiwan. All Company-owned restaurants are located in the United States. Subsequent to the end of the quarter, the Ruth’s Chris Steak House located in Bellevue, WA permanently closed. 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 28, 2021 and March 29, 2020 are not necessarily indicative of the results that may be achieved for the full year. Certain information and footnote disclosures normally presented in annual financial statements prepared in accordance with U.S. generally accepted accounting principles (GAAP) have been condensed or omitted pursuant to the SEC’s rules and regulations. These unaudited condensed consolidated financial statements should be read in conjunction with the consolidated financial statements and notes thereto included in the Company’s Annual Report on Form 10-K for the fiscal year ended December 27, 2020. The Company operates on a 52- or 53-week fiscal year ending on the last Sunday in December. The fiscal quarters ended March 28, 2021 and March 29, 2020 each contained thirteen weeks and are referred to herein as the first quarter of fiscal year 2021 and the first quarter of fiscal year 2020, respectively. Fiscal years 2021 and 2020 are both 52-week years. |
Covid-19 Impact | COVID-19 Impact In March 2020 the World Health Organization declared the novel coronavirus |
Estimates | 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 presented to prepare these condensed consolidated financial statements in conformity with GAAP. Significant items subject to such estimates and assumptions include the carrying amounts of property and equipment, goodwill, franchise rights, operating lease right of use assets and obligations related to gift cards, income taxes, operating lease liabilities, incentive compensation, workers’ compensation and medical insurance. Actual results could differ from those estimates. |
Recent Adopted Accounting Standard | Recent Accounting Pronouncements In December 2019 the FASB issued ASU 2019-12, Income Taxes (Topic 740). This update modifies Topic 740 to simplify the accounting for income taxes. The Company adopted this new standard on December 28, 2020. The adoption of ASU 2019-12 did not have a significant impact on the Company’s financial reporting. |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 3 Months Ended |
Mar. 28, 2021 | |
Fair Value Disclosures [Abstract] | |
Assets Measured at Fair Value on Non-recurring Basis | The Company did not have any non-financial assets measured at fair value on a non-recurring basis as of March 28, 2021. The Company’s non-financial assets measured at fair value on a non-recurring basis as of December 27, 2020 were as follows (in thousands): Fair Value as of December 27, 2020 Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Total Losses on Impairment Long-lived assets $ 1,708 $ 1,708 $ — $ 12,736 Territory rights $ — $ — $ — $ 3,101 |
Leases (Tables)
Leases (Tables) | 3 Months Ended |
Mar. 28, 2021 | |
Leases [Abstract] | |
Schedule of Components of Lease Expense | The components of lease expense are as follows (in thousands): 13 Weeks Ended 13 Weeks Ended Classification March 28, 2021 March 29, 2020 Operating lease cost Restaurant operating expenses and general and administrative costs $ 6,509 $ 7,152 Variable lease cost Restaurant operating expenses and general and administrative costs 2,945 2,726 Total lease cost $ 9,454 $ 9,878 |
Schedule of Maturities of Lease Liabilities | As of March 28, 2021, maturities of lease liabilities are summarized as follows (in thousands): Operating Leases 2021, excluding first thirteen weeks ended March 28, 2021 $ 23,877 2022 26,895 2023 24,834 2024 24,380 2025 22,951 Thereafter 192,755 Total future minimum rental commitments 315,692 Imputed interest (89,236 ) $ 226,456 |
Schedule of Supplemental Cash Flow Related to Leases | Supplemental cash flow information related to leases was as follows (in thousands): 13 Weeks Ended 13 Weeks Ended March 28, 2021 March 29, 2020 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 6,580 $ 6,507 Right-of-use assets obtained in exchange for lease obligations: Operating leases $ 1,092 $ 3,820 |
Revenue (Tables)
Revenue (Tables) | 3 Months Ended |
Mar. 28, 2021 | |
Revenue From Contract With Customer [Abstract] | |
Summary of Disaggregated Revenue by Major Component for Each Category | In the following tables, the Company’s revenue is disaggregated by major component for each category on the consolidated statements of operations (in thousands). 13 Weeks Ended March 28, 2021: Domestic International Total Revenue Restaurant sales $ 81,636 $ — $ 81,636 Franchise income 3,328 464 3,792 Other operating income 1,855 — 1,855 Total revenue $ 86,819 $ 464 $ 87,283 13 Weeks Ended March 29, 2020: Domestic International Total Revenue Restaurant sales $ 103,040 $ — $ 103,040 Franchise income 3,059 567 3,626 Other operating income 1,870 — 1,870 Total revenue $ 107,969 $ 567 $ 108,536 |
Summary of Receivables and Deferred Revenue Liabilities from Contract with Customers and Significant Changes in Deferred Revenue and Unearned Franchise Fees | The following table provides information about receivables and deferred revenue liabilities from contracts with customers (in thousands). March 28, December 27, 2021 2020 Accounts receivable, less allowance for doubtful accounts 2021 - $266; 2020 - $322 $ 10,208 $ 16,578 Deferred revenue $ 54,569 $ 59,030 Unearned franchise fees $ 2,128 $ 2,186 Significant changes in the deferred revenue balance and the unearned franchise fees balance during the first thirteen weeks of fiscal year 2021 are presented in the following table (in thousands). Deferred Unearned Revenue Franchise Fees Balance at December 27, 2020 $ 59,030 $ 2,186 Decreases in the beginning balance from gift card redemptions (10,668 ) — Increases due to proceeds received, excluding amounts recognized during the period 6,200 — Decreases due to recognition of franchise development and opening fees — (58 ) Increases due to proceeds received for franchise development and opening fees — — Other 7 — Balance at March 28, 2021 $ 54,569 $ 2,128 Significant changes in the deferred revenue balance and the unearned franchise fees balance during the first thirteen weeks of fiscal year 2020 are presented in the following table (in thousands). Deferred Unearned Revenue Franchise Fees Balance at December 29, 2019 $ 52,856 $ 2,489 Decreases in the beginning balance from gift card redemptions (11,522 ) — Increases due to proceeds received, excluding amounts recognized during the period 6,115 — Decreases due to recognition of franchise development and opening fees — (59 ) Increases due to proceeds received for franchise development and opening fees — — Other (46 ) — Balance at March 29, 2020 $ 47,403 $ 2,430 |
Long-term Debt (Tables)
Long-term Debt (Tables) | 3 Months Ended |
Mar. 28, 2021 | |
Debt Disclosure [Abstract] | |
Schedule of Long-term Debt Instruments | Long-term debt consists of the following (in thousands): March 28, December 27, 2021 2020 Senior Credit Facility: Revolving credit facility $ 115,000 $ 115,000 Less current maturities — — $ 115,000 $ 115,000 |
Schedule of Minimum Cash Requirement | • Minimum aggregate cash holding requirements through June 2021 in an amount equal to the following amount for each month set forth below: January 2021 $50,000,000 February 2021 $50,000,000 March 2021 $50,000,000 April 2021 $40,000,000 May 2021 $40,000,000 June 2021 $40,000,000 |
Schedule of Consolidated Leverage Ratio | • Commencing with the second fiscal quarter ending June 27, 2021, a Consolidated Leverage Ratio not to exceed the following thresholds for the periods indicated: Period Maximum Ratio The last day of the second Fiscal Quarter of the 2021 Fiscal Year 5.00 to 1.00 The last day of the third Fiscal Quarter of the 2021 Fiscal Year 4.50 to 1.00 The last day of the fourth Fiscal Quarter of the 2021 Fiscal Year 4.00 to 1.00 The last day of the first Fiscal Quarter of the 2022 Fiscal Year and thereafter 3.00 to 1.00 Period Maximum Ratio The last day of the second Fiscal Quarter of the 2021 Fiscal Year 4.00 to 1.00 The last day of the third Fiscal Quarter of the 2021 Fiscal Year 3.50 to 1.00 The last day of the fourth Fiscal Quarter of the 2021 Fiscal Year and thereafter 3.00 to 1.00 |
Shareholders' Equity (Tables)
Shareholders' Equity (Tables) | 3 Months Ended |
Mar. 28, 2021 | |
Stockholders Equity Note [Abstract] | |
Schedule of Dividends Declared and Payable | 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 2020 February 21, 2020 $ 0.15 March 6, 2020 $ 4,428 March 20, 2020 |
Segment Information (Tables)
Segment Information (Tables) | 3 Months Ended |
Mar. 28, 2021 | |
Segment Reporting [Abstract] | |
Segment Information, Operating Profit (Loss) | Segment information related to the Company’s two reportable business segments follows (in thousands): 13 Weeks Ended March 28, March 29, 2021 2020 Revenues: Company-owned steakhouse restaurants $ 82,693 $ 103,971 Franchise operations 3,792 3,626 Unallocated other revenue and revenue discounts 798 939 Total revenues $ 87,283 $ 108,536 Segment profits: Company-owned steakhouse restaurants $ 22,189 $ 17,791 Franchise operations 3,792 3,626 Total segment profit 25,981 21,417 Unallocated operating income 798 939 Marketing and advertising expenses (1,993 ) (3,438 ) General and administrative costs (7,196 ) (8,031 ) Depreciation and amortization expenses (5,063 ) (5,822 ) Pre-opening costs (445 ) (477 ) Loss on impairment — (8,697 ) Interest expense, net (1,303 ) (628 ) Other income 44 33 Income (loss) before income tax expense $ 10,823 $ (4,704 ) Capital expenditures: Company-owned steakhouse restaurants $ 359 $ 3,767 Corporate assets — 161 Total capital expenditures $ 359 $ 3,928 |
Segment Information, Assets | March 28, December 27, 2021 2020 Total assets: Company-owned steakhouse restaurants $ 411,667 $ 420,245 Franchise operations 1,415 1,705 Corporate assets - unallocated 122,023 112,108 Deferred income taxes - unallocated 8,009 8,616 Total assets $ 543,114 $ 542,674 |
Income Taxes (Tables)
Income Taxes (Tables) | 3 Months Ended |
Mar. 28, 2021 | |
Income Tax Disclosure [Abstract] | |
Schedule of Effective Income Tax Rate Reconciliation | 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 28, March 29, 2021 2020 Income tax expense (benefit) at statutory rates 21.0 % 21.0 % Increase (decrease) in income taxes resulting from: State income taxes, net of federal benefit 4.3 % 3.1 % Federal employment tax credits (10.0 %) (4.2 %) Non-deductible executive compensation 1.6 % 0.9 % Stock-based compensation (1.1 %) (6.2 %) Other (0.1 %) 4.2 % Effective tax rate 15.7 % 18.8 % |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 3 Months Ended |
Mar. 28, 2021 | |
Earnings Per Share [Abstract] | |
Computation of Basic and Diluted Earnings Per Share | The following table sets forth the computation of earnings per share (amounts in thousands, except share and per share amounts): 13 Weeks Ended March 28, March 29, 2021 2020 Net income (loss) $ 9,125 $ (3,818 ) Shares: Weighted average number of common shares outstanding - basic 34,282,733 28,287,261 Weighted average number of common shares outstanding - diluted 34,599,764 28,287,261 Basic earnings (loss) per common share $ 0.27 $ (0.13 ) Diluted earnings (loss) per common share $ 0.26 $ (0.13 ) |
The Company and Basis of Pres_2
The Company and Basis of Presentation (Details Textual) | 3 Months Ended |
Mar. 28, 2021Restaurant | |
Organization And Basis Of Presentation [Line Items] | |
Number of Restaurants | 77 |
Number of operating restaurants | 75 |
Ruths Chris Steak House [Member] | |
Organization And Basis Of Presentation [Line Items] | |
Number of Restaurants | 149 |
Ruths Chris Steak House [Member] | Company [Member] | |
Organization And Basis Of Presentation [Line Items] | |
Number of Restaurants | 74 |
Ruths Chris Steak House [Member] | Contractual Agreement [Member] | |
Organization And Basis Of Presentation [Line Items] | |
Number of Restaurants | 3 |
Ruths Chris Steak House [Member] | Franchised Units [Member] | |
Organization And Basis Of Presentation [Line Items] | |
Number of Restaurants | 72 |
Ruths Chris Steak House [Member] | Franchised Units [Member] | International [Member] | |
Organization And Basis Of Presentation [Line Items] | |
Number of Restaurants | 21 |
Fair Value Measurements (Detail
Fair Value Measurements (Details Textual) $ in Thousands | Mar. 28, 2021USD ($) |
Fair Value Disclosures [Abstract] | |
Reasonable Estimate of Assets Fair Value | $ 844 |
Fair Value Measurements - Asset
Fair Value Measurements - Assets Measured at Fair Value on Non-recurring Basis (Details) $ in Thousands | 3 Months Ended |
Mar. 28, 2021USD ($) | |
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | |
Fair value | $ 844 |
Fair Value, Measurements, Nonrecurring [Member] | Territory Rights [Member] | |
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | |
Total Losses on Impairment | 3,101 |
Fair Value, Measurements, Nonrecurring [Member] | Long-lived Assets [Member] | |
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | |
Fair value | 1,708 |
Significant Other Observable Inputs (Level 2) | 1,708 |
Total Losses on Impairment | $ 12,736 |
Leases (Details Textual)
Leases (Details Textual) $ in Millions | 3 Months Ended |
Mar. 28, 2021USD ($)Lease | |
Leases [Line Items] | |
Operating lease options to extend description | The expected lease terms include options to extend when it is reasonably certain the Company will exercise the options up to a total term of 20 years. |
Operating lease options to extend | 20 years |
Weighted average term for operating leases | 13 years 1 month 6 days |
Weighted average discount rate for operating leases | 5.20% |
Number of lease amended | 13 |
Number of leases executed | 2 |
Undiscounted fixed payments over the initial term | $ | $ 12.1 |
Lease description | Additionally, as of March 28, 2021, the Company has executed two leases for new Ruth’s Chris Steak House Restaurant locations with undiscounted fixed payments over the initial term of $12.1 million. These leases will commence when the landlords make the properties available to the Company. These leases are expected to commence during the next 18 months. Both signed leases are expected to have an economic lease term of 20 years. The Company will assess the reasonably certain lease term at the lease commencement date |
Lease term | 20 years |
Minimum [Member] | |
Leases [Line Items] | |
Operating lease options to extend | 5 years |
Remaining lease terms | 1 year |
Maximum [Member] | |
Leases [Line Items] | |
Remaining lease terms | 20 years |
Leases - Schedule of Components
Leases - Schedule of Components of Lease Expense (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 28, 2021 | Mar. 29, 2020 | |
Leases [Abstract] | ||
Operating lease cost | $ 6,509 | $ 7,152 |
Variable lease cost | 2,945 | 2,726 |
Total lease cost | $ 9,454 | $ 9,878 |
Leases - Schedule of Maturities
Leases - Schedule of Maturities of Lease Liabilities (Details) $ in Thousands | Mar. 28, 2021USD ($) |
Leases [Abstract] | |
2021, excluding first thirteen weeks ended March 28, 2021 | $ 23,877 |
2022 | 26,895 |
2023 | 24,834 |
2024 | 24,380 |
2025 | 22,951 |
Thereafter | 192,755 |
Total future minimum rental commitments | 315,692 |
Imputed interest | (89,236) |
Total | $ 226,456 |
Leases - Schedule of Supplement
Leases - Schedule of Supplemental Cash Flow Information Related to Leases (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 28, 2021 | Mar. 29, 2020 | |
Cash paid for amounts included in the measurement of lease liabilities: | ||
Operating cash flows from operating leases | $ 6,580 | $ 6,507 |
Right-of-use assets obtained in exchange for lease obligations: | ||
Operating leases | $ 1,092 | $ 3,820 |
Revenue - Summary of Disaggrega
Revenue - Summary of Disaggregated Revenue by Major Component for Each Category (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 28, 2021 | Mar. 29, 2020 | |
Disaggregation Of Revenue [Line Items] | ||
Revenues | $ 87,283 | $ 108,536 |
Restaurant Sales [Member] | ||
Disaggregation Of Revenue [Line Items] | ||
Revenues | 81,636 | 103,040 |
Franchise Income [Member] | ||
Disaggregation Of Revenue [Line Items] | ||
Revenues | 3,792 | 3,626 |
Other Operating Income [Member] | ||
Disaggregation Of Revenue [Line Items] | ||
Revenues | 1,855 | 1,870 |
Domestic [Member] | ||
Disaggregation Of Revenue [Line Items] | ||
Revenues | 86,819 | 107,969 |
Domestic [Member] | Restaurant Sales [Member] | ||
Disaggregation Of Revenue [Line Items] | ||
Revenues | 81,636 | 103,040 |
Domestic [Member] | Franchise Income [Member] | ||
Disaggregation Of Revenue [Line Items] | ||
Revenues | 3,328 | 3,059 |
Domestic [Member] | Other Operating Income [Member] | ||
Disaggregation Of Revenue [Line Items] | ||
Revenues | 1,855 | 1,870 |
International [Member] | ||
Disaggregation Of Revenue [Line Items] | ||
Revenues | 464 | 567 |
International [Member] | Franchise Income [Member] | ||
Disaggregation Of Revenue [Line Items] | ||
Revenues | $ 464 | $ 567 |
Revenue - Summary of Receivable
Revenue - Summary of Receivables and Deferred Revenue Liabilities from Contract with Customers (Details) - USD ($) $ in Thousands | Mar. 28, 2021 | Dec. 27, 2020 | Mar. 29, 2020 | Dec. 29, 2019 |
Revenue From Contract With Customer [Abstract] | ||||
Accounts receivable, less allowance for doubtful accounts 2021 - $266; 2020 - $322 | $ 10,208 | $ 16,578 | ||
Deferred revenue | 54,569 | 59,030 | $ 47,403 | $ 52,856 |
Unearned franchise fees | $ 2,128 | $ 2,186 | $ 2,430 | $ 2,489 |
Revenue - Summary of Receivab_2
Revenue - Summary of Receivables and Deferred Revenue Liabilities from Contract with Customers (Details) (Parentheticals) - USD ($) $ in Thousands | Mar. 28, 2021 | Dec. 27, 2020 |
Revenue From Contract With Customer [Abstract] | ||
Allowance for doubtful accounts | $ 266 | $ 322 |
Revenue - Summary of Significan
Revenue - Summary of Significant Changes in Deferred Revenue and Unearned Franchise Fees (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 28, 2021 | Mar. 29, 2020 | |
Revenue From Contract With Customer [Abstract] | ||
Deferred Revenue, Beginning balance | $ 59,030 | $ 52,856 |
Deferred Revenue, Decreases in the beginning balance from gift card redemptions | (10,668) | (11,522) |
Deferred Revenue, Increases due to proceeds received, excluding amounts recognized during the period | 6,200 | 6,115 |
Deferred Revenue, Other | 7 | (46) |
Deferred Revenue, Ending balance | 54,569 | 47,403 |
Unearned Franchise Fees, Beginning balance | 2,186 | 2,489 |
Unearned Franchise Fees, Decreases due to recognition of franchise development and opening fees | (58) | (59) |
Unearned Franchise Fees, Ending balance | $ 2,128 | $ 2,430 |
Long-term Debt - Summary of Lon
Long-term Debt - Summary of Long-term Debt (Details) - USD ($) $ in Thousands | Mar. 28, 2021 | Dec. 27, 2020 |
Debt Disclosure [Abstract] | ||
Revolving credit facility | $ 115,000 | $ 115,000 |
Long-term debt | $ 115,000 | $ 115,000 |
Long-term Debt (Details Textual
Long-term Debt (Details Textual) - USD ($) | Jan. 28, 2021 | Feb. 02, 2017 | Dec. 26, 2021 | Jun. 27, 2021 | Mar. 28, 2021 | Jan. 01, 2022 | Jun. 30, 2021 | Dec. 27, 2020 |
Long-term Debt, Weighted Average Interest Rate, at Point in Time | 4.00% | |||||||
Existing Credit | $ 115,000,000 | $ 115,000,000 | ||||||
Maximum [Member] | Capital Expenditure | ||||||||
Consolidated leverage ratio | 250.00% | |||||||
Scenario Forecast [Member] | Minimum [Member] | ||||||||
Fixed Charge Coverage Ratio | 100.00% | |||||||
Scenario Forecast [Member] | Maximum [Member] | ||||||||
Fixed Charge Coverage Ratio | 125.00% | |||||||
Amended Credit Agreement [Member] | Wells Fargo Bank, National Association and Other Lenders [Member] | ||||||||
Debt Instrument, Maturity Date | Feb. 2, 2023 | |||||||
Sixth Amendment To Credit Agreement | ||||||||
Commitment reduction | $ 10,000,000 | |||||||
Existing Credit | $ 120,000,000 | $ 110,000,000 | ||||||
Sixth Amendment To Credit Agreement | Capital Expenditure | ||||||||
Non maintenance capital expenditure | 5,000,000 | |||||||
Excess EBITDA | $ 7,500,000 | |||||||
Percentage of consolidated EBITDA | 7500.00% | |||||||
Sixth Amendment To Credit Agreement | Minimum [Member] | Capital Expenditure | ||||||||
Consolidated leverage ratio | 100.00% | |||||||
Sixth Amendment To Credit Agreement | Maximum [Member] | Capital Expenditure | ||||||||
Non maintenance capital expenditure | $ 5,000,000 | |||||||
Consolidated leverage ratio | 250.00% | |||||||
Sixth Amendment To Credit Agreement | London Interbank Offered Rate (LIBOR) [Member] | ||||||||
Debt Instrument, Basis Spread on Variable Rate | 2.75% | |||||||
Sixth Amendment To Credit Agreement | Base [Member] | ||||||||
Debt Instrument, Basis Spread on Variable Rate | 1.75% | |||||||
Sixth Amendment To Credit Agreement | Scenario Forecast [Member] | Capital Expenditure | ||||||||
Percentage of consolidated EBITDA | 75.00% | |||||||
Sixth Amendment To Credit Agreement | Scenario Forecast [Member] | Minimum [Member] | Capital Expenditure | ||||||||
Leverage ratio after amendment | 1.50% | |||||||
Leverage ratio for unlimited capital expenditures | 1.00% | |||||||
Sixth Amendment To Credit Agreement | Scenario Forecast [Member] | Maximum [Member] | Capital Expenditure | ||||||||
Leverage ratio after amendment | 2.50% | |||||||
Leverage ratio for unlimited capital expenditures | 1.50% | |||||||
Sixth Amendment To Credit Agreement | Scenario Forecast [Member] | London Interbank Offered Rate (LIBOR) [Member] | ||||||||
Debt Instrument, Basis Spread on Variable Rate | 3.00% | |||||||
Sixth Amendment To Credit Agreement | Scenario Forecast [Member] | Base [Member] | ||||||||
Debt Instrument, Basis Spread on Variable Rate | 2.00% | |||||||
Seventh Amendment To Credit Agreement | Capital Expenditure | ||||||||
Limit On Amount Of Growth Related Capital Expenditure | $ 20,000,000 | |||||||
Seventh Amendment To Credit Agreement | Minimum [Member] | Capital Expenditure | ||||||||
Leverage ratio after amendment | 100.00% | |||||||
Leverage ratio limit for disallowed capital expenditure | 100.00% | |||||||
Seventh Amendment To Credit Agreement | Maximum [Member] | Capital Expenditure | ||||||||
Leverage ratio after amendment | 250.00% | |||||||
Leverage ratio limit for disallowed capital expenditure | 250.00% | |||||||
Seventh Amendment To Credit Agreement | Scenario Forecast [Member] | London Interbank Offered Rate (LIBOR) [Member] | ||||||||
Debt Instrument, Basis Spread on Variable Rate | 2.50% | |||||||
Seventh Amendment To Credit Agreement | Scenario Forecast [Member] | Base [Member] | ||||||||
Debt Instrument, Basis Spread on Variable Rate | 1.50% | |||||||
Senior Credit Facility [Member] | ||||||||
Long-term Line of Credit | $ 115,000,000 | |||||||
Line of Credit Facility, Remaining Borrowing Capacity | $ 330,000 | |||||||
Line of Credit Facility, Unused Capacity, Commitment Fee Percentage | 0.40% | |||||||
Letter of Credit [Member] | ||||||||
Letters of Credit Outstanding, Amount | $ 4,700,000 | |||||||
Long-term Debt, Weighted Average Interest Rate, at Point in Time | 3.10% | |||||||
Letter of Credit [Member] | Amended Credit Agreement [Member] | Wells Fargo Bank, National Association and Other Lenders [Member] | ||||||||
Line of Credit Facility, Maximum Borrowing Capacity | $ 5,000,000 | |||||||
Letter of Credit [Member] | Sixth Amendment To Credit Agreement | Scenario Forecast [Member] | ||||||||
Line of Credit Facility, Maximum Borrowing Capacity | $ 5,000,000 | |||||||
Revolving Credit Facility [Member] | Amended Credit Agreement [Member] | London Interbank Offered Rate (LIBOR) [Member] | ||||||||
Debt Instrument, Basis Spread on Variable Rate | 1.00% | |||||||
Revolving Credit Facility [Member] | Amended Credit Agreement [Member] | London Interbank Offered Rate (LIBOR) [Member] | Minimum [Member] | ||||||||
Debt Instrument, Basis Spread on Variable Rate | 1.50% | |||||||
Revolving Credit Facility [Member] | Amended Credit Agreement [Member] | London Interbank Offered Rate (LIBOR) [Member] | Maximum [Member] | ||||||||
Debt Instrument, Basis Spread on Variable Rate | 2.50% | |||||||
Revolving Credit Facility [Member] | Amended Credit Agreement [Member] | Base [Member] | Minimum [Member] | ||||||||
Debt Instrument, Basis Spread on Variable Rate | 0.50% | |||||||
Revolving Credit Facility [Member] | Amended Credit Agreement [Member] | Base [Member] | Maximum [Member] | ||||||||
Debt Instrument, Basis Spread on Variable Rate | 1.50% | |||||||
Revolving Credit Facility [Member] | Amended Credit Agreement [Member] | Federal Funds Rate [Member] | ||||||||
Debt Instrument, Basis Spread on Variable Rate | 0.50% | |||||||
Revolving Credit Facility [Member] | Amended Credit Agreement [Member] | Wells Fargo Bank, National Association and Other Lenders [Member] | ||||||||
Line of Credit Facility, Maximum Borrowing Capacity | 120,000,000 | |||||||
Revolving Credit Facility [Member] | Sixth Amendment To Credit Agreement | ||||||||
Line of Credit Facility, Unused Capacity, Commitment Fee Percentage | 0.40% | |||||||
Line of Credit Facility, Maximum Borrowing Capacity | $ 110,000 | |||||||
Revolving Credit Facility [Member] | Sixth Amendment To Credit Agreement | Scenario Forecast [Member] | ||||||||
Line of Credit Facility, Unused Capacity, Commitment Fee Percentage | 0.40% | |||||||
Revolving Credit Facility [Member] | Seventh Amendment To Credit Agreement | Scenario Forecast [Member] | ||||||||
Line of Credit Facility, Unused Capacity, Commitment Fee Percentage | 0.40% | |||||||
Swingline Loans [Member] | Amended Credit Agreement [Member] | Wells Fargo Bank, National Association and Other Lenders [Member] | ||||||||
Line of Credit Facility, Maximum Borrowing Capacity | $ 5,000,000 | |||||||
Swingline Loans [Member] | Sixth Amendment To Credit Agreement | Scenario Forecast [Member] | ||||||||
Line of Credit Facility, Maximum Borrowing Capacity | $ 5,000,000 |
Long-term Debt - Schedule of Mi
Long-term Debt - Schedule of Minimum Cash Requirement (Details) - Fifth Amendment to Credit Agreement [Member] - USD ($) $ in Thousands | Jun. 30, 2021 | May 31, 2021 | Apr. 30, 2021 | Mar. 31, 2021 | Feb. 28, 2021 | Jan. 31, 2021 |
Minimum cash holding requirements | $ 50,000,000 | $ 50,000,000 | $ 50,000,000 | |||
Scenario Forecast [Member] | ||||||
Minimum cash holding requirements | $ 40,000,000 | |||||
Subsequent Event [Member] | ||||||
Minimum cash holding requirements | $ 40,000,000 | $ 40,000,000 |
Long-term Debt - Schedule of Co
Long-term Debt - Schedule of Consolidated Leverage Ratio (Details) - Maximum [Member] - Scenario Forecast [Member] | Mar. 31, 2022 | Dec. 31, 2021 | Sep. 30, 2021 | Jun. 30, 2021 |
Consolidated Leverage Ratio | 300.00% | 400.00% | 450.00% | 500.00% |
Seventh Amendment To Credit Agreement | ||||
Consolidated Leverage Ratio | 300.00% | 350.00% | 400.00% |
Shareholders' Equity (Details T
Shareholders' Equity (Details Textual) - USD ($) | 3 Months Ended | ||
Mar. 29, 2020 | Mar. 28, 2021 | Oct. 31, 2019 | |
Restricted Stock [Member] | |||
Dividends Payable [Line Items] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number | 518,385 | ||
Restricted Stock Units [Member] | |||
Dividends Payable [Line Items] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number | 78,294 | ||
Performance Stock [Member] | |||
Dividends Payable [Line Items] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number | 31,108 | ||
Revolving Credit Facility [Member] | |||
Dividends Payable [Line Items] | |||
Share-based Payment Award, Description | Amendments to the Company’s Credit Agreement currently prohibit the payment of dividends and share repurchases until our Consolidated Leverage Ratio (as defined in the Credit Agreement) is less than 2.50:1.00 times Bank Adjusted EBITDA. | ||
The 2019 Share Repurchase Plan [Member] | |||
Dividends Payable [Line Items] | |||
Stock Repurchase Program, Authorized Amount | $ 60,000,000 | ||
Stock Repurchase Program, Remaining Authorized Repurchase Amount | $ 41,600,000 |
Shareholders' Equity - Dividend
Shareholders' Equity - Dividends Declared (Details) - Dividend Declared 1 [Member] $ / shares in Units, $ in Thousands | 3 Months Ended |
Mar. 28, 2021USD ($)$ / shares | |
Dividends Payable [Line Items] | |
Declaration Date | Feb. 21, 2020 |
Dividend Per Share (in dollars per share) | $ / shares | $ 0.15 |
Record Date | Mar. 6, 2020 |
Total Amount | $ | $ 4,428 |
Payment Date | Mar. 20, 2020 |
Segment Information (Details Te
Segment Information (Details Textual) | 3 Months Ended |
Mar. 28, 2021RestaurantSegment | |
Segment Reporting Information [Line Items] | |
Number of Operating Segments | Segment | 2 |
Number of Restaurants | 77 |
Ruths Chris Steak House [Member] | |
Segment Reporting Information [Line Items] | |
Number of Restaurants | 149 |
Company [Member] | Ruths Chris Steak House [Member] | |
Segment Reporting Information [Line Items] | |
Number of Restaurants | 74 |
Operated under Contractual Agreements [Member] | |
Segment Reporting Information [Line Items] | |
Number of Restaurants | 3 |
Franchised Units [Member] | Ruths Chris Steak House [Member] | |
Segment Reporting Information [Line Items] | |
Number of Restaurants | 72 |
Segment Information - Segment I
Segment Information - Segment Information, Operating Profit (Loss) (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 28, 2021 | Mar. 29, 2020 | Mar. 29, 2020 | |
Revenues: | |||
Revenues | $ 87,283 | $ 108,536 | |
Segment profits: | |||
Gross profit | 25,981 | 21,417 | |
Unallocated operating income | 798 | 939 | |
Marketing and advertising expenses | (1,993) | (3,438) | |
General and administrative costs | (7,196) | (8,031) | |
Depreciation and amortization expenses | (5,063) | (5,822) | |
Pre-opening costs | (445) | (477) | |
Loss on impairment | (8,697) | $ (8,697) | |
Interest expense, net | (1,303) | (628) | |
Other | 44 | 33 | |
Income (loss) before income tax expense | 10,823 | (4,704) | |
Capital expenditures: | |||
Capital expenditure | 359 | 3,928 | $ 3,928 |
Operating Segments [Member] | Company-owned Steakhouse Restaurants [Member] | |||
Revenues: | |||
Revenues | 82,693 | 103,971 | |
Segment profits: | |||
Gross profit | 22,189 | 17,791 | |
Capital expenditures: | |||
Capital expenditure | 359 | 3,767 | |
Operating Segments [Member] | Franchise Operations [Member] | |||
Revenues: | |||
Revenues | 3,792 | 3,626 | |
Segment profits: | |||
Gross profit | 3,792 | 3,626 | |
Segment Reconciling Items [Member] | |||
Revenues: | |||
Revenues | $ 798 | 939 | |
Corporate, Non-Segment [Member] | |||
Capital expenditures: | |||
Capital expenditure | $ 161 |
Segment Information - Segment_2
Segment Information - Segment Information, Assets (Details) - USD ($) $ in Thousands | Mar. 28, 2021 | Dec. 27, 2020 |
Segment Reporting Information [Line Items] | ||
Assets | $ 543,114 | $ 542,674 |
Operating Segments [Member] | Company-owned Steakhouse Restaurants [Member] | ||
Segment Reporting Information [Line Items] | ||
Assets | 411,667 | 420,245 |
Operating Segments [Member] | Franchise Operations [Member] | ||
Segment Reporting Information [Line Items] | ||
Assets | 1,415 | 1,705 |
Corporate, Non-Segment [Member] | ||
Segment Reporting Information [Line Items] | ||
Assets | 122,023 | 112,108 |
Deferred income taxes - unallocated | $ 8,009 | $ 8,616 |
Stock-based Employee Compensa_2
Stock-based Employee Compensation (Details Textual) - USD ($) $ in Millions | May 15, 2018 | Mar. 28, 2021 | Mar. 28, 2021 | Mar. 29, 2020 | Dec. 27, 2020 | Dec. 29, 2019 |
Restricted Stock [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number | 518,385 | 518,385 | ||||
Omnibus Incentive Plan 2018 [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Authorized Number of Shares Reserved for Future grants | 2,500,000 | |||||
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Available for Grant | 2,207,410 | 2,207,410 | ||||
Stock Issued During Period, Shares, Restricted Stock Award, Gross | 86,676 | |||||
Allocated Share-based Compensation Expense | $ 1.6 | $ 2 | ||||
Stock Issued During Period, Shares, Restricted Stock Award, Fully Vested | 7,802 | 2,470 | ||||
Omnibus Incentive Plan 2018 [Member] | Share-based Compensation Award, Tranche One [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Stock Issued During Period, Shares, Restricted Stock Award, Gross | 28,881 | |||||
Omnibus Incentive Plan 2018 [Member] | Share-based Compensation Award, Tranche Two [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Stock Issued During Period, Shares, Restricted Stock Award, Gross | 28,881 | |||||
Omnibus Incentive Plan 2018 [Member] | Share-based Compensation Award, Tranche Three [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Stock Issued During Period, Shares, Restricted Stock Award, Gross | 28,914 | |||||
Omnibus Incentive Plan 2018 [Member] | Restricted Stock [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number | 517,803 | 517,803 | ||||
Long-term Equity Incentive Plan 2005 [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Plan expiration date | May 30, 2018 | |||||
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares, Cancelled | 1,649,394 | |||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Issuable upon Exercise of Currently Outstanding Option | 0 | 0 | ||||
Long-term Equity Incentive Plan 2005 [Member] | Restricted Stock [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number | 109,984 | 109,984 |
Income Taxes - Reconciliation o
Income Taxes - Reconciliation of the U.S. Statutory Rate to the Effective Rate (Details) | 3 Months Ended | |
Mar. 28, 2021 | Mar. 29, 2020 | |
Effective Income Tax Rate Continuing Operations Tax Rate Reconciliation [Abstract] | ||
Income tax expense (benefit) at statutory rates | 21.00% | 21.00% |
Increase (decrease) in income taxes resulting from: | ||
State income taxes, net of federal benefit | 4.30% | 3.10% |
Federal employment tax credits | (10.00%) | (4.20%) |
Non-deductible executive compensation | 1.60% | 0.90% |
Stock-based compensation | (1.10%) | (6.20%) |
Other | (0.10%) | 4.20% |
Effective tax rate | 15.70% | 18.80% |
Income Taxes (Details Textual)
Income Taxes (Details Textual) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 28, 2021 | Mar. 29, 2020 | |
Income Tax [Line Items] | ||
Effective income tax rate | 15.70% | 18.80% |
Income tax expense (benefit) | $ 1,698 | $ (886) |
CARES Act [Member] | ||
Income Tax [Line Items] | ||
Income tax expense (benefit) | (1,800) | |
Income tax expense related to valuation allowance against deferred tax assets | $ 1,700 |
Earnings Per Share - Computatio
Earnings Per Share - Computation of Basic and Diluted Earnings Per Share (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | |
Mar. 28, 2021 | Mar. 29, 2020 | |
Earnings Per Share [Abstract] | ||
Net income (loss) | $ 9,125 | $ (3,818) |
Shares: | ||
Weighted average number of common shares outstanding - basic | 34,282,733 | 28,287,261 |
Weighted average number of common shares outstanding - diluted | 34,599,764 | 28,287,261 |
Basic earnings (loss) per common share | $ 0.27 | $ (0.13) |
Diluted earnings (loss) per common share | $ 0.26 | $ (0.13) |
Earnings Per Share (Details Tex
Earnings Per Share (Details Textual) - $ / shares | 3 Months Ended | |
Mar. 28, 2021 | Mar. 29, 2020 | |
Earnings Per Share [Abstract] | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | 4,005 | 341,451 |
Weighted Average Exercise Prices Anti Dilutive Stock Options | $ 0 | $ 0 |
Commitments and Contingencies (
Commitments and Contingencies (Details Textual) | Mar. 28, 2021Supplier |
Commitments And Contingencies Disclosure [Abstract] | |
Number of Suppliers | 2 |