Ruth's Hospitality Group Inc. (NASDAQ:RUTH) Q1 2018 Earnings Conference Call Transcript

May 04, 2018 • 08:30 am ET

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Ruth's Hospitality Group Inc. (NASDAQ:RUTH) Q1 2018 Earnings Conference Call Transcript

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Presentation
Executive
Arne G. Haak

repurchase any shares under the current share repurchase programs. At the end of the first quarter, we have $50.7 million outstanding under our previously announced $60 million share repurchase authorization.

Now, I'd like to reaffirm our outlook based on current information for the full-year of 2018 for some of our key cost metrics. Through this point in the second quarter, our calendar comparable sales are currently running flat to up in the low single digits, despite a headwind from the shift of the Easter holiday into the first quarter. The supply of prime beef continues to remain at historically high levels and beef inflation has continued to moderate. While the current outlook looks favorable, there is still limited visibility on the direction that retail demand could take this summer. We continue to expect total beef inflation to be in the range of 3% to 5% for the full-year. As a result, we expect our cost of goods sold to remain in the range of 29% to 31% of restaurant sales.

We continue to expect restaurant operating expenses to be between 47% and 49% of restaurant sales. We continue to expect marketing and advertising costs to be between 3.8% and 4%. We expect G&A expenses to remain between $32 million and $34 million. We continue to expect our effective tax rate to be between 19% and 21%. We expect our capital expenditures to remain between $29 million and $31 million and could grow depending on the timing of additional new unit openings. We continue to expect our fully diluted shares outstanding to be between 30.5 million and 31 million shares, exclusive of any share repurchases under the company's share repurchase program.

With that I'd now like to turn the call over to Sergey, for any questions we might have.