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What's in Store for Ruth's Hospitality's (RUTH) Q2 Earnings?

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Ruth's Hospitality Group, Inc. (RUTH - Free Report) is scheduled to report second-quarter 2021 results on Aug 6, before the opening bell. In the last reported quarter, the company’s earnings beat the Zacks Consensus Estimate by 160%.

Q2 Estimates

The Zacks Consensus Estimate for second-quarter earnings is pegged at 23 cents per share, against the prior-year quarter’s loss of 48 cents. The consensus mark for second-quarter earnings has remained stable in the past 30 days. The Zacks Consensus Estimate for revenues stands at $107.6 million, indicating growth of 278.7% from the year-ago quarter.

Factors to Note

The company’s second-quarter performance is likely to have benefited from accelerating sales trends, dining rooms reopening and digitalization. Robust restaurant sales might have contributed to the to-be-reported quarter’s performance. The Zacks Consensus Estimate for restaurant sales is pegged at $102 million, suggesting a whopping improvement of 277.8% year over year. The company remains focused on restaurant development and expansion. It intends to open two to three new company-owned restaurants by the end of this year, including Short Hills, NJ. Its foundational technological investments bode well. However, increase in food inflation might have negatively impacted the company’s second-quarter margin.

What the Zacks Model Unveils

Our proven model predicts an earnings beat for Ruth's Hospitality this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat.

You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Ruth's Hospitality has a Zacks Rank #2 and an Earnings ESP of +33.33%. You can see the complete list of today’s Zacks #1 Rank stocks here.

Other Stocks Poised to Beat Earnings Estimates

Here are some other stocks from the Zacks Restaurant space that investors may consider as our model shows that these too have the right combination of elements to post an earnings beat this quarter:

Chuy's Holdings, Inc. (CHUY - Free Report) has an Earnings ESP of + 3.99% and a Zacks Rank #3.

Papa John's International, Inc. (PZZA - Free Report) has an Earnings ESP of +3.99% and a Zacks Rank #2.

Brinker International, Inc. (EAT - Free Report) has an Earnings ESP of +8.54% and a Zacks Rank #2.

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