Ruth's Hospitality Group, Inc. Reports Preliminary Sales Results for the Fourth Quarter 2009

Ruth's Hospitality Group, Inc. (NASDAQ: RUTH) today reported preliminary sales results for the 13-week fourth quarter ended December 27, 2009.

Total company-owned restaurant sales decreased by 10.5%, to $83.7 million for the fourth quarter ended December 27, 2009 compared to $93.5 million for the fourth quarter ended December 28, 2008. Company-owned comparable restaurant sales for Ruth's Chris Steak House decreased 11.2% in the fourth quarter of 2009 from the fourth quarter of 2008, compared to an 18.7% decrease in the fourth quarter of 2008 from the fourth quarter of 2007. Sales results in the fourth quarters of 2009 and 2008 have been adjusted downward to reflect the reclassification of sales discounts from operating expenses to net sales. The adjustment for sales discounts in the fourth quarter of 2009 was $2.1 million, while the adjustment for sales discounts in the fourth quarter of 2008 was $3.0 million. Comparable restaurant sales for Mitchell's Fish Market decreased 2.6% for the fourth quarter of 2009 from the fourth quarter of 2008.

Mike O'Donnell, Chief Executive Officer and President of Ruth's Hospitality Group, stated, 'We believe our preliminary sales results for the fourth quarter suggest that the sales environment at our restaurants has stabilized. While absolute sales volumes have declined from 2008, our unit level cash flow and return on capital continue to be very solid given cost initiatives that have become a permanent part of our model. In terms of the specific guidance metrics we've referenced throughout the year, we expect to meet targets for cost of goods sold, general and administrative expenses and capital expenditures, which we believe will continue to drive free cash flow generation and will assist us in our on-going debt reduction efforts. In fiscal 2009, we reduced our outstanding debt by approximately $35 million.'

Mr. O'Donnell continued, 'As we enter 2010, we believe the proposed financing transactions we announced on December 22, 2009 will allow us to further reduce the Company's leverage in a very meaningful way and provide us with the financial flexibility to improve our performance and competitive position. In addition, we believe that adding a representative to our board from Bruckmann, Rosser, Sherrill & Co., an experienced and successful restaurant industry investor, upon completion of the proposed financing transactions will enhance our strategic decision making process. With two strong brands and a great team in place, we believe we are well prepared to seize the opportunities and confront the challenges in the year ahead.'

Management expects to release final audited results and comment on 2009 performance as well as strategic plans for 2010 on its quarterly earnings call, which is currently scheduled for mid-February.

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