Ruth’s Chris Steakhouse is the largest upscale steakhouse company in the United
ID: 2332345 • Letter: R
Question
Ruth’s Chris Steakhouse is the largest upscale steakhouse company in the United States, based on total company- and franchisee-owned restaurants. The company’s menu features a broad selection of highquality USDA prime grade steaks and other premium offerings. Currently, there are 100 Ruth’s Chris restaurants, of which 50 are company-owned and 50 are franchisee-owned, including 10 international franchisee-owned restaurants in Mexico, Hong Kong, Taiwan, and Canada. Information from the company’s annual report is shown below (dollar amounts in thousands, except share data): a. Common stock, par value $0.01, 100,170,000 shares authorized, 23,225,356 issued and outstanding at December 31, 2010, 23,413,356 issued and outstanding at December 31, 2011. b. Additional paid-in capital $179,431 in 2010 and $184,389 in 2011. c. Accumulated deficit $80,897 in 2010. d. Net income in 2011 was $55,783. No dividends were paid.
RUTH'S CHRIS STEAKHOUSE Balance Sheet (Partial) At December 31 2010 2011 Common stock Additional paid-in capital Accumlated deficit 179,431 (80,897) 184,389 Total shareholders' equity 98,534 184,389Explanation / Answer
Balance Sheet (Partial) 2010 2011 Shareholder's equity(deficit): Common Stock 232254 234134 Additional Paid-in capital 179431 184389 Accumulated deficit (Retained Earnings) -80897 -25114 Total shareholder's equity 330788 393409