About Ruth's Hospitality Group

Ruth’s Hospitality Group, Inc. develops and operates fine dining restaurants under the trade name Ruth’s Chris Steak House. The company operates Ruth’s Chris Steak House restaurants, including company-owned restaurants, restaurants operating under contractual agreements and franchisee-owned restaurants, including international franchisee-owned restaurants in Aruba, Canada, China, Hong Kong, Indonesia, Japan, Mexico, Philippines, Singapore and Taiwan. All company-owned restaurants are located in the United States. Ruth’s Chris Steak House Ruth’s Chris Steak House is one of the largest upscale steakhouse companies in the world. The menu features a broad selection of the USDA Prime and Choice grade steaks and other premium offerings served in Ruth’s Chris’ signature fashion — ‘sizzling’ — complemented by other traditional menu items inspired by its New Orleans heritage. Ruth’s Chris complements its distinctive food offerings with an award-winning wine list. The Ruth’s Chris menu also includes premium quality chicken, crab, fish, lamb chops and lobster. The Ruth’s Chris restaurants offer a variety of appetizer items, including calamari, New Orleans-style barbequed shrimp, mushrooms stuffed with crabmeat, seared ahi tuna, spicy shrimp, veal osso buco ravioli, goat cheese & artichoke dip, shrimp cocktail, chilled seafood tower and sizzling crab cakes, as well as four different salads. The company’s restaurants also offer a variety of potatoes and vegetables as side dishes. For dessert, crème brûlee, traditional bread pudding with whiskey sauce, chocolate sin cake, cheesecake and other selections are available. The company’s Ruth’s Chris restaurants offers wines-by-the-glass, handcrafted cocktails and numerous beers, premium liquors and alcoholic dessert drinks. Ruth’s Chris is predominately open during dinner hours with only a limited number of restaurants open for lunch. The lunch menu offers lunch-specific entrees also features their signature steaks and seafood. Gift Cards The company sells Ruth’s Chris gift cards at most of its Ruth’s Chris Steak House restaurants, including franchises, on its website and through its toll-free number. E-gift cards, which may be purchased on the company’s e-commerce gift card website, are emailed directly to the recipient and are redeemable in the same manner as physical gift cards. Ruth’s Chris gift cards are also sold in third-party retail outlets and are available through redemption of American Express Membership Rewards points. Offering gift cards at third-party retailers and e-gift cards gives Ruth’s Chris the opportunity to maximize last-minute gift-giving and address its patrons’ requests for convenient, immediate purchases. Ruth’s Chris patrons frequently purchase gift cards for holidays, including Christmas, Hanukkah, Valentine’s Day, Mother’s Day and Father’s Day, and other special occasions. Franchise Program and Relationship Under the company’s franchise program, it offers certain services and licensing rights to the franchisee to help maintain consistency in system-wide operations. The company’s services include training of personnel, construction assistance, providing the new franchisee with standardized operating procedures and manuals, business and financial forms, consulting with the new franchisee on purchasing and supplies and performing supervisory quality control services. The company conducts reviews of its franchisee-owned restaurants to ensure compliance with its standards. Under the company’s franchise program, each franchise arrangement consists of a development agreement, if multiple restaurants are to be developed, with a separate franchise agreement executed for each restaurant. The company’s form of development agreement grants exclusive rights to a franchisee to develop a minimum number of restaurants in a defined area, typically during a three-to-five-year period. Individual franchise agreements govern the operation of each restaurant opened and have a 20-year term with two renewal options each for additional ten-year terms if certain conditions are met. Strategy The company’s strategy includes maintaining a healthy core business, growing with a disciplined investment approach, and returning excess capital to shareholders. The company strives to maintain a healthy core business by growing sales through traffic, managing operating margins and leveraging its infrastructure. Suppliers During 2022, the company purchased substantially all the beef it used in company-owned Ruth’s Chris restaurants from two vendors, Sysco Specialty Meat Group (a subsidiary of Sysco) and Stock Yards Packing (a subsidiary of US Foods). Service Marks The company has registered the main service marks ‘Ruth’s Chris’ and its ‘Ruth’s Chris Steak House, U.S. Prime & Design’ logo, as well as other service marks used by its restaurants, with the United States Patent and Trademark Office and in the foreign countries in which its restaurants operate. The company has also registered in other foreign countries in anticipation of new store openings within those countries. Seasonality The company’s business is subject to seasonal fluctuations. Historically, the percentage of its annual revenues earned during the first and fourth fiscal quarters (year ended December 25, 2022) have been higher relative to other quarters due, in large part, to increased restaurant sales during the year-end holiday season and the popularity of dining out in the fall and winter months. Government Regulation The Patient Protection and Affordable Care Act of 2010 (ACA) has required restaurant companies, such as the company, to disclose calorie information on their menus. The U.S. Federal Trade Commission (FTC) requires that the company furnish to prospective franchisees a franchise disclosure document containing prescribed information. Competition The principal upscale steakhouses with which the company competes are Fleming’s, The Capital Grille, Smith & Wollensky, The Palm, Del Frisco’s Double Eagle Steakhouse, Fogo de Chão, Morton’s The Steakhouse, Eddie V’s and other local fine dining restaurants. History Ruth's Hospitality Group, Inc. was founded in 1965. The company was incorporated in 2005.