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Ruth’s Hospitality Group, Inc. Provides Update on Actions Taken In Response to COVID-19
– Company Announces Short-term Measures to Enhance Financial Strength & Flexibility –
“The safety and well-being of our team members and guests is our priority in these challenging times. Our brand has a rich history of rising to the occasion and I am proud of our team’s response to this unprecedented situation,” said
Borrowings Under Senior Credit Facility
As previously announced, on
Actions Taken To Improve Liquidity
Additional measures to enhance the Company’s financial flexibility include suspending all new restaurant construction and non-essential capital expenditures which are expected to lower annual capital expenditures by over
Due to the state mandates regarding limited or no in-restaurant dining due to COVID-19, the Company is leveraging its Ruth’s Anywhere program in markets where take-out and delivery sales are sufficient to cover the costs of management staffing those locations. At this time, Ruth’s Chris is currently operating many of its domestic restaurants in take-out or delivery mode, with no dining rooms currently open for operation. Delivery is available in all of those locations via third-party delivery networks and those partners vary by location. The Ruth’s Anywhere Program will offer a streamlined menu available on its website here, featuring many guest favorites.
Lastly, due to the ongoing uncertainty around the duration and severity of the COVID-19 pandemic, the company has withdrawn its financial guidance for fiscal year 2020.
Further details regarding the credit agreement and financial actions described in this release may be found in the Company’s Current Report on Form 8-K filed today. The Company currently expects to provide additional updates on the business when it announces its first quarter 2020 financial results.
For information about our restaurants, to make reservations, or to purchase gift cards, please visit www.RuthsChris.com. For more information about Ruth’s
Cautionary Note Regarding Forward-Looking Statements
This press release contains “forward-looking statements” that reflect, when made, the Company’s expectations or beliefs concerning future events that involve risks and uncertainties. Forward-looking statements frequently are identified by the words “believe,” “anticipate,” “expect,” “estimate,” “intend,” “project,” “targeting,” “will be,” “will continue,” “will likely result,” or other similar words and phrases. Similarly, statements herein that describe the Company’s objectives, plans or goals, including actions to be taken in response to the novel strain of coronavirus (COVID-19) that has spread globally, capital expenditures, strategy, and financial outlook, also are forward-looking statements. Actual results could differ materially from those projected, implied or anticipated by the Company’s forward-looking statements. Some of the factors that could cause actual results to differ include: reductions in the availability of, or increases in the cost of, USDA Prime grade beef, fish and other food items; changes in economic conditions and general trends, including the impact the COVID-19 pandemic; the impact of actions taken to address the COVID-19 pandemic, including additional borrowings under our credit facility; the loss of key management personnel; the effect of market volatility on the Company’s stock price; health concerns about beef or other food products; the effect of competition in the restaurant industry; changes in consumer preferences or discretionary spending; labor shortages or increases in labor costs; the impact of federal, state or local government regulations relating to income taxes, unclaimed property, Company employees, the sale or preparation of food, the sale of alcoholic beverages and the opening of new restaurants; harmful actions taken by the Company’s franchisees; the inability to successfully integrate franchisee acquisitions into the Company’s business operations; a material failure, interruption or security breach of the Company’s information technology network; the Company’s indemnification obligations in connection with its sale of the Mitchell’s Restaurants; the Company’s ability to protect its name and logo and other proprietary information; an impairment in the financial statement carrying value of our goodwill, other intangible assets or property; the impact of litigation; the restrictions imposed by the Company’s credit agreement; and changes in, or the discontinuation of, the Company’s quarterly cash dividend payments or share repurchase program. For a discussion of these and other risks and uncertainties that could cause actual results to differ from those contained in the forward-looking statements, see “Risk Factors” in the Company’s Annual Report on Form 10-K for the fiscal year ended
Unless the context otherwise indicates, all references in this report to the “Company,” “Ruth’s,” “we,” “us”, “our” or similar words are to Ruth’s