Why Ruth's Hospitality Stock Was Down Today

Shares of Ruth's Hospitality Group (NASDAQ: RUTH) were heading lower today after the fine-dining company announced a secondary stock offering that would dilute shareholders. The stock was down 11.6% as of 10:18 a.m. EDT on Thursday.

The parent of Ruth's Chris Steak House said that it would sell $43.5 million in common stock to Jefferies, which would in turn sell it to the general public. Jefferies also has the right to purchase an additional $6.525 million in shares.

Ruth's Hospitality plans to use the proceeds to repay borrowings under its existing credit agreements and strengthen its balance sheet in response to the impact of the COVID-19 pandemic.

Source Fool.com