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RUTH - Ruths Hospitality Group


Cervelo

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Just started kicking the tires on this one but at first blush looks good:

 

Very strong free cash flow

Paying down debt

Recently started paying a dividend

Will benefit from increased consumer spending that should result from lower commodity prices (i.e. cheaper gas at the pump)

Havent got this far but assuming they have sold off due to margins being impacted by rising cattle prices (similar National Beef Co. which is owned by Luecadia). With higher cattle prices ranchers are more inclined to "produce" more cattle which will lower prices and improve margins.

 

Will post more as I learn more.

 

Thoughts...

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Super hot plates = overcooked steak.  It looks like it might be interesting on ev/ebit based.  Thanks for posting.

Everyone likes their steak differently. I went to a steakhouse with a friend who happens to be a butcher, I couldn't believe it when he ordered ax expensive steak well done. Maybe he gets tired of raw steaks at work!

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