Ruth’s Hospitality Group, Inc. Annual report pursuant to Section 13 and 15(d)

Annual report pursuant to Section 13 and 15(d)

Note 1 - The Company and Basis of Presentation

Note 1 - The Company and Basis of Presentation

12 Months Ended

Dec. 25, 2022

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.

As of December 25, 2022, there were 154 Ruth’s Chris Steak House restaurants, of which 77 were Company-owned, 74 were franchisee-owned, and three locations were operating under contractual agreements. All Company-owned restaurants are located in the United States. The franchisee-owned restaurants include 23 international restaurants in Aruba, Canada, China, Hong Kong, Indonesia, Japan, Mexico, Philippines, Singapore and Taiwan. Four Company-owned Ruth’s Chris Steak House restaurant opened during 2022, in Aventura, FL, Worchester, MA, Melville, NY and Long Beach, CA.

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, 2022.

	*13 Weeks Ending*												*52 Weeks Ending*
	*December 25, 2022*												*December 25, 2022*
Ruth's Chris Steak House	*Company*			*Franchised*			*Managed*			*Total*			*Company*			*Franchised*			*Managed*			*Total*
Beginning of period		77			74			3			154			73			74			3			150
Acquired		0			0			0			0			0			0			0			0
Sold		0			0			0			0			0			0			0			0
New		0			0			0			0			4			0			0			4
Closed		0			0			0			0			0			0			0			0
End of period		77			74			3			154			77			74			3			154
% of total		50	%		48	%		2	%		100	%		50	%		48	%		2	%		100	%

COVID-19 Impact

The novel coronavirus 2019 (COVID-19) pandemic resulted in a significant reduction in revenue at the Company’s restaurants due to mandatory restaurant closures, capacity limitations, social distancing guidelines or other restrictions mandated by governments across the world, including federal, state and local governments in the United States. As a result of these developments, the Company experienced a significant negative impact on its revenues, results of operations and cash flows compared to periods prior to the onset of the pandemic. As of and throughout the fiscal year ended December 25, 2022, all of the Company-owned and -managed restaurants were open. The extent to which COVID-19 will continue to impact the Company will depend on future developments, which are highly uncertain and cannot be predicted with confidence, including the duration and impact of variants of the COVID-19 virus and the continued effectiveness of the COVID-19 vaccines and boosters in the jurisdictions in which the Company operates, the actions taken to contain the impact of COVID-19, and further actions that may be taken to limit the resulting economic impact.