Annual report pursuant to Section 13 and 15(d)

Note 1 - The Company, Organization and Description of Business

v3.7.0.1
Note 1 - The Company, Organization and Description of Business
12 Months Ended
Dec. 25, 2016
Notes to Financial Statements  
Organization, Consolidation and Presentation of Financial Statements Disclosure [Text Block]
(1)
The Company, Organization and Description of Business
 
Ruth’s Hospitality Group, Inc. and its subsidiaries (the Company) operate Ruth’s Chris Steak House restaurants and sell 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.
 
At
December
25,
2016,
there were
150
Ruth’s Chris Steak House restaurants, of which
68
were Company-owned,
81
were franchisee-owned, and
one
location was operating under a management agreement. All Company-owned restaurants are located in the United States. The franchisee-owned restaurants include
20
international restaurants in Aruba, Canada, China (Hong Kong and Shanghai), Indonesia, Japan, Mexico, Panama, Singapore, Taiwan and the United Arab Emirates.
Two
new Company-owned Ruth’s Chris Steak House restaurants opened during
2016,
in Albuquerque, NM and El Paso, TX. Franchisees opened
two
new restaurants during
2016,
in Jakarta, Indonesia and Greenville, SC. During the Company’s fiscal year
2016,
the franchisee-owned Ruth’s Chris Steak House restaurant in San Salvador, El Salvador and the Company-owned Ruth’s Chris Steak House restaurant in Columbus, OH were closed. Subsequent to the Company’s fiscal year
2016,
the Company opened
one
Company-owned restaurant in Waltham, MA and
one
restaurant operating under a contractual agreement in Tulsa, OK.
 
As of
December
28,
2014,
the Company also operated
eighteen
Mitchell’s Fish Markets and
three
Mitchell’s/Cameron’s Steakhouse restaurants (collectively, the Mitchell’s Restaurants), located primarily in the Midwest and Florida. On
January
21,
2015,
the Company sold the Mitchell’s Restaurants to a
third
party. For financial reporting purposes, the Mitchell’s Restaurants are classified as a discontinued operation for all periods presented. See Notes
3,
4
and
5
for additional information regarding the Mitchell’s Restaurants and the sale.
 
The following table summarizes the changes in the number of Company-owned Ruth’s Chris Steak House restaurants and franchisee-owned restaurants during the
thirteen
and
fifty
-
two
weeks ended
December
25,
2016.
 
 
 
13 Weeks Ending
 
 
52 Weeks Ending
 
 
 
December 25, 2016
 
 
December 25, 2016
 
                                                                 
Ruth's Chris Steak House
 
Company
   
Franchised
   
Managed
   
Total
   
Company
   
Franchised
   
Managed
   
Total
 
Beginning of period
   
68
     
80
     
1
     
149
     
67
     
80
     
1
     
148
 
Acquired
   
0
     
0
     
0
     
0
     
0
     
0
     
0
     
0
 
Sold
   
0
     
0
     
0
     
0
     
0
     
0
     
0
     
0
 
New
   
0
     
1
     
0
     
1
     
2
     
2
     
0
     
4
 
Closed
   
0
     
0
     
0
     
0
     
1
     
1
     
0
     
2
 
End of period
   
68
     
81
     
1
     
150
     
68
     
81
     
1
     
150
 
% of total
   
45
%    
54
%    
1
%    
100
%    
45
%    
54
%    
1
%    
100
%