RUTH - Earnings call transcript Q3 2020 | Ruths Hospitality Group Inc

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Operator

Good morning, ladies and gentlemen. Thank you for standing by. Welcome to today's Ruth's Hospitality Group Third Quarter 2020 Earnings Conference Call. At this time, all participants are in a listen-only mode. [Operator Instructions] As a reminder today's call is being recorded. to conference like to now would turn over the Mr. I Chief Financial Haak, Officer. Arne sir. Please go ahead

Arne Haak

Thank good Melissa you, and morning everyone.

Officer. Joining is me Executive Cheryl call Henry, our today President and on the Chief

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

be document of week. those expect we For this interested filing you filed next XX-Q our to in

adjusted was call, earnings that represents this During measure This a We useful by of this certainly calculated non-GAAP believe measure internal we items. share. per excluding performance. refer will to measurement

over Executive You like for press turn the would today's I earnings a now of Officer Chief to Cheryl call share Henry. release in call. the company's reconciliation can per find our to adjusted

Cheryl Henry

successfully above during business; further Today are today to and of Thank financial March principles the our of health and guide they following performance principles for safety and three, In to time our are towards position; you we call. margin executing hope members. you, place staying managing our two, approach managing one, everyone and thank appreciate year, the against Arne. healthy. strategic us We third that all take sales these and the and us Good all believe for challenges and pleased of we set third in your in quarter. team strong joining I morning improving and reflected COVID-XX: guests say, of earnings quarter XXXX this safe through our our I'm the a and solidify long-term is

remained safety have Ruth's legendary a ever-changing teams by have and to and for, Chris our health paramount. dedicated modes them providing environment the Our that different to in variety all changing They a our agile day sometimes while is guests' complex, serve operated have guests they requires service resilient, keeping successful. the been known of and very in

during sales increased seen. to restaurants note reasons rooms that XX.X%, for comp more. I'd the XX% with the XX%, improved So you with view our accurate that are decrease decreased outdoor third efficiencies the to in but all of behind This share restrictions performance when cases helped with sales quarter. limited or dining now positive to our closed. which the some reflects generate operating the important while The it's combined capacity and that open, that facing were of five in strong that performance dining sales number we've XX cash flow like more of is over a includes our comparable temporarily restaurants by quarter restaurants base remained

benefited in and the from restaurants types. demand. of area a markets we less midsized is than softer our sales of the great First, seeing suburban in Nearly York are these XX% in or of our restaurant portfolio that portfolio example generally The are of between metropolitan is a New XX% disparities well-diversified areas market restaurants. urban performance

Westchester sales were restaurant at is September, sales in XX%, hotel New our down in the our During a while year-over-year. Manhattan were York which restaurant up

a that to variety Ruth's has types the here quarter. be the it in stated the often of have Chris proven in works beneficial and that third one is We market of of strengths model that

guests. appeal and mix to just has equally guest Chris Ruth's special and the changing evolve needs. of our nearly XX% during delivery business because to quarter expanded our that strength relatively COVID Another third decline private our the is between distributed we year. The pandemic initiatives earlier of customer has business overcame sales the Anywhere mix our in Program ability impacted due of been to sales but dining this model occasion broad Historically, place takeout our demand, our and put Ruth's

signals they seeing like just customers. non-business also birthday, are because from Chris. frequently and We occasions our as year-over-year, are that demand that Ruth's are Americans anniversary high-quality restaurants eating double-digit out may while choosing when for trust do they not eat a which celebratory, out, rise to Reservations us up be in they

Comparable are partners third up down franchise XX% XX.X% comparable impressively Asian quarter Our after our X.X% franchise were More were QX. restaurants third down sales also being the at results. franchise-operated seeing locations in for the sales open quarter similar year-over-year. in in

rooms of in year's basis third quarter than quarter. strong higher last points top profit improvement, you dining than the the upon In the a already sequential on year. risen our These restaurant challenge more of of the a restaurant XX restaurant last open operating a during minutes. line more share Arne margin. level, that details But produced addition operating improved they high generated the to will XX% restaurants XXX had our third operators few that and over further with the in have to at same average restaurants generated profit also margin

an While strong safely. solid and to our we they ready governments call the mix right controlling confident playbook. is has of third been adapt $XX it which the applicable outstanding. and whether returned at it control, profits is and million, that XXXX. now and these point, down I'd our beginning in secured is our moving been are am February innovation cash partners, our know. end alongside control. operational that like excellence team, In incredibly to credit revolving in our on credit had franchise their extension Chris to was including debt dedication $XX every and have not an we Dining am efforts it to minutes facility a of spend on to of and debt I work basis room tireless from proud of experiences are can million time. million be million size a in one through local of $XXX.X whole their October, net restaurants, of uncertain the we by credit over this like the now $XX position a each of them and just our continue our difficult the this the a Sales third more sheet. to have few Ruth's are additional by will just during quarter, due balance geographic now that, our To to Arne as of deliver our our over line At results we noting to or COVID review teams direction responsive are I year-end. to detail. to in seasonality an turn operators. this you But year. I down and amendment, has the what net guests as worth the performance quarter With we in paid restrictions to would annual will at on With and facility great state the and

Arne Haak

Cheryl. you, Thank

items. of $X.X net of For million, $X.X in net included loss diluted the XX, XXXX, third The quarter the September related or payments, tax third we share. to and impairment $X.XX of income severance income modifications, loss in a XXXX quarter discrete impact ended $XXX,XXX in tax reported $XXX,XXX related related loss $X.X million inventory assets lease per to the losses to and million a long-lived expense

XXXX. as restaurant common third per of loss to loss diluted in quarter for $X.XX. the the million, non-GAAP $XX.X a $XX.X decrease quarter share The COVID-XX. million of restaurant the our which room adjustments, compares due $XX.X were XXXX. restrictions and was in-dining revenues to was as these sales which compares for were closures Total Excluding local were a which sales million, state in result $XXX Company-owned to in both million well

the down COVID-XX during sales Comparable nearby by July, year-over-year, down our the comparable restrictions on XX%. Franchise sales September. were quarter-to-date franchisee the territory down and our XX% year-over-year. Domestic noted, benefited thus Cheryl franchise sales. progressed. fewer comparable in or comparable XX% quarter By of beach had international have in August of decreased and was sales income improved comparable in Most franchise sales considerably increased impact the month, attractions. dining sales fourth this in steady staycations that are quarter, mountain as X.X% restaurant demand in at the is were XX% to reflecting held Total decreased down quarter far from XX% franchise As in XX%. restaurant markets due or

attributed be to down as the year-over-year beef due were a Turning we to of points focused expenses, XX%. year-over-year expenses more to and costs new down of sales to were which our well levels as Restaurant XX.X%, largely can sales experienced. XX.X% percentage food XXX basis operating our as deflation lower menu, beverage restaurant

reopen that quarter restaurants decline dining up focused we the the had rooms, in we open sales in being our regaining continue dining despite were As sharply results on see of The to leverage. our in margins rooms the our year-over-year, sales.

in seen direct food, operating margin labor have and also costs. significant in our improvements We in

to labor beneficial we sales efforts may gains will continue but be of efficiencies our identified and slow, these sales, that grow permanent from As a believe realize efficiency food these we we recovery. we have that some during

approach to real our strategic a taken also have costs. manage estate We

one of closing the third profitable, quarter were post-COVID start In during this a quarter. was of of portfolio, locations occupancy world, near evaluating By negotiating Since over have system age points were permanently and XXXX. or permanently less locations Many third contributed EBITDA reviewing of the we real closed economics life the deleveraging far, X% to or margin closure. an These our is why lease XXX of in that Our year-over-year. years pandemic, systematically we face additional of company-owned estate these sales that XX pressure average down we rent restaurant-level margin the our than location. restaurants nine This only four terms underperformed due where was restaurants and their for the operating in company's while regard, the in both. a have basis end are the and permanently over challenging there's the and, permanent biggest been necessary, location we had revised currently locations in closed expenses.

our us when new lets even amendment ratio of is growth unit over now X.X development, resumption our Regarding earn forward leverage new CapEx the going bank times.

feature to be with environment pleased this there's are real resume uncertainty still the in much would growth. we too say estate we to when regulatory While able

remains restaurant portfolio capacity restrictions, with today, at open closed. temporarily and managed restaurants dynamic look restaurants remain and are of delivery are subject XX% and and dining restaurants outdoor changes. one only. operating to XX company Over takeout with state The we rooms and operating restaurants regulatory our five our is As status open operating five open our local dining restaurants restaurant of have

capacity these head rate expectation was due rate the third in operating of plans we actively the periods. was into in recognize XXXX challenges, the income face will loss pre-tax the X.X% our during in company in pre-tax the our satisfy As XXXX. late we XXXX. to tax The to maximize revenue versus of versus the busiest quarter developing the The restrictions tax performance ability limit XX.X% may seasonal teams that increase have year, income a in in XXXX demand, quarter these our we typically are to Despite quarter. our that our

we to included At tax balance second $XXX.X the of quarter, the increase rate and result, credits add the pre-tax rent quarters. approximately they third a income from in end million deferred our the have credits and third these tax reduce was million our As When rate. our income tax tax the $X cash benefit. tax will company's because

the the not a due we're continued guidance reminder, of any COVID-XX, duration additional this surrounding As at providing impact the time. of to uncertainty

turn go to to we call a to back before like for remarks. Cheryl Now few the Q&A, summary I'd

Cheryl Henry

Arne. Thanks,

Just a few takeaways. quick

now and estate First, restaurants circumstances we and a future we our managing rightsized our real great believe given current portfolio opportunities. of are collection

have grown level, margins sacrificing made Ruth's restaurant love. Chris that changes experience we've the to at customers the improved have operational Second, without

performance we made as debt. effectively efficiently look strengthened significant can should us invest play will cost cases picking to strategic next improve we moves or meaning variety a and offense and occasions of cautiously play you've which have our we the months. net stakeholders few we know sheet, our the the environment should are continue rise to in scenarios. operate defense navigate further coming help is increasing right amidst balance COVID yet we our As modest quarters. we has optimistic up, All-in-all And today, the liquidity, This heard as for are guest restaurant and third, portfolio

environment. up controllable said, challenging with we line I what's we'll questions. As are that a for the open And controlling in

Operator

conducting session. this question with comes Vaccaro [Operator will Thank Instructions] line Raymond Brian Please a of be we your time, question. from proceed first you. At with Our question-and-answer the James.

Brian Vaccaro

morning. it in you similar side, even through it give then world about provide it monthly Has period dollars Good is where I here or looking sales average of range October? a exited year-on-year least just period. got sales us the rather and monthly to But right XXs seems a the COVID Arne in on the on at you. cadence at sense in guess, a question company little in the AWS be perhaps AWS could I weekly Thank low My in could you all Is coming the guess opinion. trends that door trended comp is it my September? And to the than has better? you

Arne Haak

Brian. Sure,

Our an just were north you back of were that's we the like improvement and XXs in remember of sales weekly June-July. if in from in $XX,XXX September average kind

as a tremendous were when think about we delivery doing were so So it's $XX,XXX. we and only been about far. trend takeout you cadence, the only April

And So the you're that we're of seasonality business our it's over today in $XX,XXX. seeing. October,

good the news I weekly sales grow. are So to this think carefully. very average watching -- is continuing we're The

really kind as set because highs we have we this compare restaurants of quarter against. We of and end the numbers towards particularly have the are we're we to for get to continuing individual new watching big some

in And I direction. encouraging. the we moving seems right think to it be everything find So

a it's average been good So sales. trend weekly on

Cheryl Henry

room just sales just the an number month-to-month and in But restaurants are Brian, coming you in include note one there's obviously, that out average operating well. as would And about dining as as Yes. change think from also restaurants the external and regulations. weekly standpoint jurisdictions

in those numbers. So that's

Brian Vaccaro

That Yes. makes sense.

but was there. the number looking Sorry, the I at sales. was misquoted not I weekly sales XX.X, that average

recent you're weeks. the in in XXs clearly yes, So

So okay. percent outdoor what of southern frame Are out how losing guess, help that That's do you that And months? that dining, expanded how contributed? some have to will outdoor through you in maybe helpful. there on certain could states? play perhaps the states the And many winter units might add think offset then, opportunities sales seats I seating it in northern

Cheryl Henry

to Arne. generally this then I'll Hey, Brian let and give me say it

stay Florida We group fairly have a Texas warmer. are and fortunate large we California, in some that

warm systems Some look around there in what argue probably of XX%, But I I that capabilities as months. live not winter the that people think it's months. our through the at we have winter possibility is the think

obviously for when dining and gets capacity. XX% is rooms up think us I open when at the to least our biggest driver that capacity

the and They quick job. and made credit got this reservations. beautiful the their our on went of give done opportunities one yes, books, and dining people found a outside close. and They needed Hills So to our day I'll fantastic kept tent night a a room are teams. all have I'll tell instead out story looking that there in over they And location. XXX to Woodland out closing they and had

do So opportunity able in the teams to true credit rooms are team not. I be dining we're think that. But certainly that is the to prepared the when open. again event the But are the to

Arne Haak

has most have week dining probably so to pivots that nice And could pleasant it's now. kind to to of of kind Florida sitting of forth. weather in choose prepared there kind think and the We're I Brian, And still that it. tricky I But people California change. are Florida, that could be you coming outside outdoor every really help. back winter. real mean, this into one obviously, do been just not better the Yes right do

think nimble some I been is day. Carry to something in a really has what been Like in how and to operators pivot we're okay, outside. able impressive to tables our going different. have point been do the cases Cheryl's

tent. a Someone go get

outdoor down carpeting. put Let's

up. lights Let's put string

the of lot that behind decorate nice you're and sitting in really Let's a like And see tables. pictures wow parking a mall. looks you

now direction know direction businesses think, now. just our to And it's how we how a and on. to or dead go can kind get another we got it strong manage to Cheryl's so go be cash. being far. we in as and our and about good know this COVID we in looks let's manage what now to do when XXXX. I what like okay have like We when as So so playbook of they We one as And point a healthy can is

Brian Vaccaro

Yes. Yes.

And customer missed to mix Could sales mix you in off-premise but off-premise offset business provide off-premise, what talked sort on I the important an an you versus if the of being sorry you're of extent. color dine-in some about this versus to dine-in? seeing lost

Cheryl Henry

Yes.

was of when XX% and to-go it So were between if prior running only we sales. recall you were open we Brian, XX% really and year

we that. open restaurants, about half we As we're see of keeping

So flip option have I'm still come they're think see a people through great see side our I But also teams I that guess And for this. back experience the thrilled it's us to the to seeing I some on people it's willing viable and and our in know to them. are restaurants. trust

going we the are we have see how to something, certainly it looking the it's leverage holiday up season. technology do still to So into program can we and QX the that we especially with certainly stood

Brian Vaccaro

on that's right. Yes. to pass the hear. and Well recovery along. it Yes. Congrats I'll great All

Arne Haak

All right. Thank, Brian.

Operator

Thank you.

from proceed Andy line with your the Barish of Our Please question. Jefferies. question comes with next

Andy Barish

Hey, good morning.

the few that of menu kind permanent finds changes. other could the streamlined you of if wondering, margin with here Just and located a out you've sort call of procedural

Cheryl Henry

Yes.

for more Arne detail. I'll Let me start to and it turn

restaurants, the hours forth. in this. management I opportunity some this we're of in and some menu. there the the As give opportunities there would were at went phase really the some structured how towards this and we delicate of and that's balance as the different very a looked we kind us streamlining of looked for of restaurants of preps as say well as And more you at the first see the in on of but the so especially numbers levels is Arnie of where let I'll the

a we're we that are ensuring the the impacting on that few tracking menu the And they or how it's about of how back our feel service, kind items well items think the impact as seen of overall. of for what items. of this we a guest, on we the basis, about we've as number menu so some the on streamline are remaining we we put the experience in menu regular and more not whether And hold able efficiencies on guests some labor we've those as found in of input to been tracking

Arne Haak

So, the main Cheryl hit I think, Andy themes. really

think of the our is you of we well is the in how I wants work. stick. probably where has in people think stickiness. front the labor And The how of changes labor And gone use and we through the I terms been probably the I management house teams. to everyone is potential roles team know of stickiest looked the completely think do – There's have to if will. back-of-the-house at as the those

help functions in that that get of the done going the to point, some when in a kitchen. at you're be Now maybe restaurant. sales probably we've able don't need higher, done back centralize won't some need to be And you to levels today more

come some level at our a but point point we're back going think back, were -- restaurant healthy. they'll that's I So margins where to

a recovery we of have but we're know with like. whatever I us as to length through, comfortable as looks manage, that, think we tool go So, this help we the

Andy Barish

portfolio maybe would share, on stores if just a Thanks. of terms basis, in closed? had would margins restaurant How to XXXX? then, of level kind the looking have if And how benefited, been at you're pruning, normalized those willing

Arne Haak

absolutely I tend they It give does have provide of me, tailwind but a underperforming. right. terms that Andy, don't it for provide to -- front exact that will kind number in of also an to in us, you're of be you

play, challenging couldn't and really of they but with and they had decent on costs Some you for come. some scenario economics. a years, the And prize just COVID -- see had just coming restaurants years recovery in sales, to a

have perhaps it tailwind bit that color. the can out. go with just the but do of those that's about a we So, took for and you more, don't I work chat a exact XXXX, little We number if

Andy Barish

of on, XX% problem. if think XQ? cost just for of finally beef decline, goods an the you you much that do was XQ then, XXX beef production? And just the costs, back And of points to have outlook then No how looking of basis

Arne Haak

Sure.

outlook with, we'll I the quarter the guess, for, fourth So off start quarter.

some quarter. expect we of nowhere the in deflation, think saw we I modest third the level near that deflation

and we I'd the demand. say fourth mid-single-digit on the quarter probably, will plays of So demand retail really our like, been The is retail around beef. the big is that up probably this. There's is if for guess kind uncertainty finger big strong And proteins, had unknown. in hold to air that particularly out in how --

one of As at level nailed think restaurant opener. we I the that really an was of kind upon things look eye the you margin,

food percentage is sales the nearly think, XX beef. here the seen a lowest I've And as Our costs, due since I've ever probably I of years. about that's to decline it, half and is been of

Last I quarter was were XX%. up we a third year, So down it record believe in the XX%. were we high. And XX%,

if of at in kind still, probably kind you the years, we're is. half of still the where the last of beef look upper we're bands five So, of

but relatively from point, elevated last are we still So from comp, benefiting the we're year.

Andy Barish

very much. you Thank

Arne Haak

Melissa?

Operator

you. Thank

with line proceed Our Rutherford from the Please next with question question. your Stephens. comes of James

Unidentified Analyst

guys. actually for question. Sean taking the James. It's Hey, on Thanks for

given wondering to your higher is were that perhaps, fine segment, might just quick think rate occasion the rate, one where a one, shifting this impacting be this pandemic. be independent what view could we've Just you how in much the talking off-premise. on, we lot a closure there heightened throughout difficulty closure about, been dining the We of

Cheryl Henry

us. Sean. Thanks, for I'll speak

I think it laid out. Arne,

based on mentioned. review we'll Arne the, our to us, here. we've closures more We'll don't done continue -- believe, We We attributes it. the portfolio work see from around for that are

over of I come. think of last as all there's we more kind are seeing couple weeks the to volatility

early. I the think space it's itself, in

I think going what's industry. place. lot think a I estimates it's week, each different early. you I is are out to there And taking within unfortunate, happen And that a number I'll read of there. It's the of tell this

there's to more needed think are time I allowed I reopen our dining we in landscape that's what go note, understand rooms, even when with consumer allowed when demand limiting the -- XX% not a of to seen, here But restriction industry. it's this say, really we would can we that dining. fine for tell we us on as the have demand the positive there is It's a -- like exactly kind is what's forward. looks that

I somewhere consumer around get. want experience And yes occasion. they And They in I want they to are can consumers looking so spot that say They the They we're feel think the would there. mindset, for the in trust. are out for go good to a safe. that, us,

Unidentified Analyst

you. Thank awesome. Great,

Operator

Thank you. …

Cheryl Henry

Melissa?

Operator

you. [Operator Instructions] Thank

Our with comes King line Associates. next with Please question Brooks & question. Todd from CL your the of proceed

Todd Brooks

Hey. out we Good to that of And the could get positive kick the limits the maybe wondering curious, was the we especially might Thanks. how what expecting a And as these understand, from I just the under in? quarter? basis? QX typically how typical the you us And if does we you're any one-third, change thanks to think potential as just quarter, deeper of you're offsets how And the that season get help how one-third, operating about in question. And need for morning. end progresses. one-third year? this I'm holiday over capacity your then Ruth's across Anywhere that mix, year-over-year

Cheryl Henry

it a week-by-week it. or you your focused more of to quarter build. take traditionally highest dining I'll second for question our Let and fourth say private toss me period-by-period nailed quarter. then would I Arne Certainly is

of aware obviously, that. are, We

and we And larger and room I a agile how think is into do control stand of bundled much But for for dinner to the are we and have have of four doing again that the meals quarter will their like still if teams dining out Arne catering families our thinking plans might six how up restaurant. a is around offsite standpoint want in from for the for what comfortable open. it's or about as it be. this go to they staying -- of things we might do a where when have don't that feel mentioned folks some ready offerings a dinner delivery

So those we underway. great all loyal of initiatives are the that have are over -- We're guests database putting years. a

there? certainly you And the sure tapping the so add Arne is Ruth's experience people into anything they into understand during we're can the holiday season in at Chris. ways different to that significant get make But as to that starts fairly to look weeks where December. comp

Arne Haak

Yeah where it. Todd, average couple sales. maybe about I had asked we just are on to guess a put weekly of numbers behind I know Brian

from of kind quarter $XX,XXX we've it spent about the think $XX,XXX. transitioning you like third to if so And

of at year in the the is sales. you last sales we on like $XXX,XXX our $XXX,XXX weekly did to $XXX,XXX or from weeks I here last go out look you're year-over-year, to from trend what anywhere the year think year-over-year weekly for as the average average two

know big it big the a is busy day? talked think they I think I the teams So I flexibility about the big really occasions? are I doing for I I They're a other pretty private use -- party different you push about a can Can that's may I the of Can think a company think -- us those when see for and they have dining my And those understanding question being and kind too. carte? I to use But but use la this -- tremendous for not weeks how I back it it's holiday help use last it people during it year, smart have should job. against room. about it.

is there's big setting And really for December are up, they weekly look new it so when doing anxiously encouraging. we we're are about the sobering And records looking continue who's average what is and some average think last how every and to You year. sales people comp where see weekly inching weekly at sales. I how for sales. average that, But doing, week think it's are people you

Cheryl Henry

only other I day. later add to we've would earlier the willingness is thing a the times seen Todd dine and And the at during from guests

think those that's mentioned coming an Arne And so dining opportunity. into weeks during really day. significantly the I

done be historically So limited a heavy for the something can past. that's opportunity going volume into on but we've us weeks those of basis, an

Todd Brooks

just final last can right double-digit talk you as helpful. on That's as business I because, about and in far occasions. now question, of, up about occasion-based talked year-over-year you very just And then think general? just my kind you about the customers? but some demand at longer about tracking COVID-wise call the we world possible the now from just demand now events, may least it talk XXXX. tailed have into sits that been can Thank business about talked your But where maybe you. inquiries But

Cheryl Henry

Yeah.

again we I level. is where sit which regulated certainly this of think local we is something the did, on And kind increase. an there's extent really that's to

restrictions oftentimes the have certain size. around governments we're local so And party inquiries there's and getting

restrictions are of so to the safety for all those And we adhering of our guests.

it real forth to seen to celebration business. -- seeing is haven't quite and looking of people I in is it's and the would interesting side a be pickup of of think certainly so and But birthdays and are pickup I jurisdictional. people say And some say again So the business of come around the celebrate not just seeing as what's inquiries a again that meetings there. we're their looking has type some been we in social get kind I'd because out. might

allowing size you six. are do it just party and -- So can't a some markets over others

Arne Haak

question last one I demand of note will in the I the upon would green they're as really if regulatory that environment I is think in. it this -- your think the I what reflect shoots Todd, and you reflect markets too,

COVID and So XXX%, we're example we we we about upfront our in think to potentially This are is the Florida distancing approach That of have There's manage I generate QX. said relaxing greater a Northeast. priority ability safe as question thorough and flow. in to safety and with isn't social our publicly our and average cash about your this in about based doing the upon thoughtful demand an said, the our one in though health think to maximizing is weekly in to there the acceptance reflect Florida, first that sales. Cheryl balancing Florida. keeping live then see. are keeping to think a I be teams being for as still It's we we very In even need important I for it dollar may with on safe being in we safety. and restaurants Florida, this go how our customers also living Today

So question, a really good thanks.

Operator

next your Sandler. question of with the Our Piper question. Joshua Please proceed comes line Long from with

Joshua Long

been it's Thanks to I'm right? your about that about just scenes. air learnings of I pivoted work brand the in that for getting you talk runway couple you environment the a there's question. just pivoted the the sure And appreciate know quotes able that little lot the in we've of some now have growth terms But mean learned is what say I we consumer of Cheryl the be you obviously didn't the of Wanted maybe taking the and front wouldn't lot stability. to last effortlessly behind Great. if of teams see a I a -- can bit might of quarters, business. or of brand. beforehand? But murky have the

can digital future. going a leveraging through out how the further So Ruth's you grow or forward? or off-premise think or down as that improves as are alters brand maybe have out we further curious in that's what database the learned maybe how the just more that's pandemic evolves Whether you

Cheryl Henry

in I try three I'll were there -- to there. great. think That's

to going all. to talk them I'm hit So

say let me First this.

for there think was. takeaways in two really were just how I knew is continuing I team see. big me our this and One great to

and I up don't experience the their And have and think we and just forth be they're franchisees guests team are the that, to see And of agility safe. sometimes again and this We their our outstanding this teams. to the impressive. has -- to foundation can brand. keeping real and the in back And been the pivoted It's advantage with they tenured been of members truly same had as business daily and tenure the that their why and way and industry. have your talk of the then and understanding impressive every side dedication and I you are a stepped about team they of just ops on have And taking and ongoing point of sales. really opportunity that's as They the underestimated. crisis field opportunity has we've They haven't team The the truly leadership. of been. have we've strength been successful their dealing a while in the what franchise when an done our

mentioned second is would this brand. The strength you of one say the I

this of almost I've but has that brand So May have to in that and been built XX what my one not testament years, for Chris the stop. years. I the people in around been And to has that has I'm XX Ruth's guests for XX the last for going been birthday become just that here here said a have celebrated over come XX to it's true time. I've years. loyalty mean

just the of something been going forward. the outstanding. guest the brand I so, And has dedication leverage can think base and Yes that's we loyalty to the

opportunities early take timing strength which specifically development. brand a is it and around understanding what that this And it's this based future? of and and too us. both how brand brand resilient And the little we've on I right of to understanding what the an and Yes view do. specifically, of understanding I do exactly front to opportunity and early team just people how an again the the learned the the think in has our opportunity think grow that team certainly we'll how or we giving But numbers of. to advantage opportunity. is is be of But capable when guest in strength size or say there's you're

Joshua Long

Hey thank you.

Operator

back that final gentlemen Henry session. comments. for and any concludes our question-and-answer Ms. the to Ladies I'll floor you. turn Thank

Cheryl Henry

so forward on to all us for you with speaking look joining you again much Thank the call today soon. and we

Operator

today's This concludes you. Thank conference.

lines your your at disconnect you may for Thank participation. time. You this

Ruths Hospitality (RUTH) 30 Oct 202020 Q3 Earnings call transcript