HEATHROW, Fla.—Ruth's Chris Steak House Inc. said Tuesday its first-quarter profit dropped 33 percent because of higher costs and an insurance claim benefit that boosted results in the year-ago quarter.
For the quarter ended March 30, net income fell to $4.5 million, or 19 cents per share, from $6.8 million, or 29 cents per share, in the prior-year quarter.
The results matched the average estimate of Wall Street analysts polled by Thomson Financial.
Food and beverage costs rose 20 percent while other restaurant operating expenses jumped 32 percent. Interest expenses also grew significantly in the quarter.
The company's year-ago results, meanwhile, were also helped by a 7 cents-per-share gain from insurance claims related to Hurricane Katrina.
Revenue rose 21 percent to $98.6 million from $81.5 million in the first quarter of 2007. Analysts expected revenue of $103.2 million.
Same-store sales, or sales at locations open at least a year, fell 6.9 percent at company-owned locations.
Same-store sales is a key indicator of restaurant performance because it measures growth at existing locations rather than newly opened ones.
Ruth's Chris shares fell 2 cents to $7.97 in after-hours trading. During regular trading, shares dipped 6 cents to close at $7.99.
