On October 29th, both Ruth’s Hospitality Group and the Cheesecake Factory posted results for their respective third quarters of 2020. 

Ruth’s posted revenue of $63.4 million with a loss of $(5.3) million and a negative EPS of $(0.15).  Comparable figures for the third quarter of FY2019 were revenue $103 million with net earnings of $4.5 million and an EPS of $0.16.

For the third quarter ending September 29th, the Cheesecake Factory posted revenue of $517 million and a net loss of $(28.3) million with a negative EPS of $(0.76).  Comparable values for the third quarter of fiscal 2019 were revenue of $587 million, net earnings of $16.6 million and an EPS of $0.37.

Both companies have re-opened the majority of their restaurants with appropriate COVID precautions.  Notwithstanding these measures it is evident that customers are disinclined to patronize restaurants based on fear of COVID. This may in part be offset by home delivery and pick-up. With respect to both casual and fine dining, financial considerations may be a deterrent, given ongoing high unemployment and job insecurity.

Expenditure on dining-out is now diverted to home cooking and online entertainment.