Ruth's Hospitality Group Inc. (NASDAQ:RUTH) Q2 2020 Earnings Conference Call - Final Transcript

Jul 31, 2020 • 08:30 am ET

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Ruth's Hospitality Group Inc. (NASDAQ:RUTH) Q2 2020 Earnings Conference Call - Final Transcript

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Presentation
Operator
Operator

Good morning, ladies and gentlemen, and thank you for standing by. Welcome to today's Ruth's Hospitality Group 2020 Second Quarter Earnings Conference Call. [Operator Instructions]

I would now like to turn the conference over to Arne Haak, Chief Financial Officer. Please go ahead, sir.

Executive
Arne G. Haak

Thank you, and good morning, everyone. Joining me today on the call is Cheryl Henry, our President and Chief Executive Officer. Before we begin, I'd like to remind you that part of our discussion today will include forward-looking statements. These statements are not guarantees of our future performance, and therefore, undue reliance should not be placed upon them. We would also encourage you to refer to the Investor Relations section of our website at rhgi.com as well as the SEC's website at sec.gov for copies of today's earnings press release and our recent filings with the SEC for a more detailed discussion of the risks that could impact our future operating and financial results.

For those of you interested in our 10-Q filing, we expect this document to be filed next week. During this call, we will refer to adjusted earnings per share. This non-GAAP measurement was calculated by excluding certain items. We believe that this measure represents a useful internal measure of performance. You can find a reconciliation of adjusted earnings per share in our press release for today's call.

I would now like to turn the call over to the company's Chief Executive Officer, Cheryl Henry.

Executive
Cheryl Henry

Thank you, Arne. Good morning, and thank you for joining us for our second quarter 2020 earnings call. We appreciate your time today and hope that everyone is staying safe and healthy. First and foremost, as we continue to face this evolving COVID-19 crisis together, I am proud of our team. Their resiliency, their focus and their determination to emerge stronger from this pandemic is truly amazing. In this challenging environment, we have continued to elevate our safety standards while maintaining the art of hospitality that makes the Ruth's Chris dining experience so special. The strength of our business continues to be grounded in the health and safety of our customers and our team members and a focus on operational excellence, all of which are the foundation of our brands and long-term success.

As you are aware, the second quarter began with a highly uncertain environment as all of our restaurants faced mandatory dining room closures. Our teams quickly transitioned to takeout and delivery only in more than 2/3 of our company locations. This included the addition of multiple third-party delivery partners and the launching of online ordering and payment for company restaurants. We also streamlined our menu choices and refined our to-go packaging to provide quality and reheating capabilities for guests who want to experience the sizzle at home.

In May, as local guidelines permitted, we began to reopen our dining rooms. And by the end of June, 88% of our company-owned restaurants were open. 59 restaurants were operating with open dining rooms and 12 in takeout and/or