Ruth's Chris Steak House Q4 profit falls

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Feb 21 (Reuters) - Restaurant chain Ruth's Chris Steak House Inc (RUTH.O) said its quarterly profit more than halved and forecast 2008 results way below analysts' estimates, sending shares down by about 5 percent. The company reported fourth-quarter net income of $4.1 million, or 18 cents a share, compared with $10.7 million, or 46 cents a share, a year earlier.

The last year's quarter, which had an extra week, included 9 cents a share in hurricane-related insurance proceeds.

Total sales rose by a percent to $89 million, while company-owned comparable restaurant sales fell 5.6 percent.

Analysts expected the company to earn 20 cents a share, excluding items, on revenue of $90.9 million, according to Reuters Estimates.

"Our fourth-quarter results reflected continuing challenges with guest traffic, driven by an uncertain economy and a more cautious consumer," Chief Executive Officer Craig Miller said in a statement.

The company said it expects earnings from continuing operations to be 55 cents to 60 cents a share for 2008, including the acquisition of Mitchell's Fish Market.

Analysts were expecting the company to earn 81 cents a share, before items.

The restaurant chain said it plans to undertake several major remodeling projects in 2008 that may cause hurt short-term sales and profit in these restaurants.

The company which provides a variety of steak cuts, along with lamb, veal and fresh seafood, has a chain of about 100 steakhouses across the United States.

Shares of the Heathrow, Florida-based company fell to $7.15 in trading after the bell, after closing at $7.50 Thursday on Nasdaq. (Reporting by Neetha Mahadevan in Bangalore; Editing by Anil D'Silva)