UPDATE 1-Ruth's Hospitality Q2 profit tops Street

Fri Jul 31, 2009 8:15am EDT

* Q2 adj EPS frm cont-ops $0.14

* Q2 rev down 18 pct

* Sees 2009 cap-ex of $8.0 mln to $10.0 mln

July 31 (Reuters) - Ruth's Hospitality Group Inc (RUTH.O) posted a higher-than-expected quarterly profit from continuing operations, helped by a fall in food and beverage costs and favorable beef costs.

The operator of upscale steakhouses earned $2.3 million, or 10 cents a share, compared with $2.8 million, or 12 cents a share, last year.

Excluding items, Ruth's earned 13 cents a share.

The company earned 14 cents, excluding items, from continuing operations, according to Reuters Estimates.

Revenue fell 18 percent to $88.4 million.

Analysts on average were looking for a profit of 7 cents, before items, on revenue of $93.23 million, according to Reuters Estimates.

Franchise income fell 17.3 percent to $2.5 million.

Ruth's, which said it does not see any company-owned restaurant openings in 2009, said it sees full-year capital expenditure of $8.0 million to $10.0 million.

The company said it sees cost of goods sold of 29.0 percent to 30.0 percent of sales

Shares of the Heathrow, Florida-based company closed at $3.56 Thursday on Nasdaq. (Reporting by Vidya Lakshmi in Bangalore; Editing by Jarshad Kakkrakandy)