Over the past five years, both sub-sectors (restaurants & luxury retail) of the retail industry that Ruth's Hospitality Group (NASDAQ:RUTH) is a part of have been incredibly strong performers. While it is said that "a rising tide lifts all boats," RUTH has not rallied like many of its peers. The five-year performance of some luxury retail & restaurant stocks is shown below.
Tiffany (NYSE:TIF): +48.87%
Ralph Lauren Corp (NYSE:RL) +73.7%
Coach Inc (NYSE:COH) + 35.36%
Nordstrom (NYSE:JWN) -11.56%
McDonald's (NYSE:MCD) +126.93%
Chesecake Factory (NASDAQ:CAKE) +4.77%
Darden Restaurants (NYSE:DRI) +13.01%
While both luxury retailers and restaurant stocks have done well over the past five years, RUTH has not participated. Shares of RUTH are down 72.72% over the same period.
(Click charts to expand)
Considering luxury retailers and restaurants have been doing well, it might be time for RUTH to play catch-up.
Forward PE Ratio: 13.93
Year-over-year growth rate: 18.8%
RUTH's PE ratio compares well with the previously mentioned companies
- RL has a forward PE ratio of 17.63
- COH has a forward PE ratio of 15.54
- MCD has a forward PE ratio of 17.5
- CAKE has a forward PE ratio of 15.67
RUTH's Portfolio of Restaurants
- 131 Ruth's Chirs Steakhouse restaurants (64 company owned; 67 franchise owned)
- 14 International Franchises
- 20 Mitchell's Fish Market restaurants
- 3 Cameron's Steakhouse restaurants
Both McCormick & Schmick (NASDAQ:MSSR) and Morton's (NYSE:MRT) have recently been bought out by Landry's. RUTH 's market cap is just over 200 million. This means RUTH could easily be taken over by many potential suitors.
RUTH is a stock that offers a good value for investors looking to play luxury retail & restaurants.
Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.