Question-and-Answer Session
Operator
(Operator Instructions) Your first question comes from Jeffrey Omohundro – Wachovia Capital Markets, LLC.
Jeffrey Omohundro – Wachovia Capital Markets, LLC
I was wondering if you could talk a little bit more about the management change at Ruth’s and how that might impact the Mitchells integration status. Also, maybe some comment about the down draft in average weekly sales at Mitchell’s.
Geoffrey D. K. Stiles
Let me address the management side, the management team at Mitchell’s have been in place for a long period of time. They’re turnover rates are very similar to ours at Ruth’s. There has been no change within the system nor within our Ruth’s Chris as well and we are not anticipating any uptick in turnover or in strategy regarding the brands.
Robert M. Vincent
With regard to the second part of your question I would say realistically the macroeconomic conditions that are really impacting all of the brands in the space, and those characteristics are no different from Mitchell’s so the fact that there was a slight decline in average weekly volume, I don’t think it’s indicative of anything other than the fact that the pressures we’re facing in the space if you will are present there as well.
Jeffrey Omohundro – Wachovia Capital Markets, LLC
Then moving on to Ruth’s Chris and the beef cost situation, we’re seeing a pickup in cattle future prices, I’m just thinking is there time when you would contemplate contracting further out rather than having so much in the spot market? And, what is your thinking as you move in to the end of this year and in to next year on the beef?
Robert M. Vincent
I would say that our teams continue to monitor the market daily and from what I understand and let me be honest, I’m just in to this thing six weeks, the spread between the spot and the future market is pretty significant. In terms of tenderloins what I understand is that the spot market we’re at approximately $7 to $7.50 and in the future markets are somewhere north of $10.
So, I think that clearly that we have a desire to hedge and make sure that we have the predictability in our food costs but on the other hand it needs to be economically feasible to do so. So, I think stay tuned, we’ll continue to monitor it and then when there’s an opportunity we’ll certainly take advantage of it.
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