Chuy's Holdings, Inc.

Revenue was $110.5 million in Q1 2024 versus $112.5 million in the prior-year quarter. Net income was $6.9 million, or $0.40 per diluted share, compared with $8.2 million, or $0.45 per diluted share last year; adjusted net income was $7.3 million, or $0.42 per diluted share, versus $8.5 million, or $0.47 per diluted share. Comparable restaurant sales on a calendar basis, adjusted for the 53rd-week shift, decreased 4.3%, with average weekly customers down 6.9% and average check up 2.6%. Cost of sales was 25.2% of revenue, labor was 31.4%, operating costs were 16.4%, and restaurant-level operating margin was 18.8%. Looking ahead, management reaffirmed 2024 adjusted EPS guidance of $1.82 to $1.87, assuming 6 to 8 new restaurants, G&A of $29 million to $30 million, net capex of $41 million to $46 million, preopening costs of $2.7 million to $3.2 million, a 13% to 14% tax rate, and 17.4 million weighted diluted shares. Management said commodity inflation should be in the low single digits for the year and labor inflation in the mid-single digits.

Steve Hislop said the quarter was hit by weather and macro pressure, but trends improved as the quarter progressed after adjusting for Easter timing. He emphasized that off-premise continues to grow, menu innovation through CKO is resonating, and the company remains disciplined about keeping the menu streamlined while adding guest favorites selectively. His tone was cautiously optimistic, with a strong focus on 4-wall execution, value messaging, and long-term growth through new units.

Jon Howie walked through the quarter’s financial drivers, including the $1.8 million estimated sales hit from the 53rd-week shift, about $900,000 of EBITDA impact, and roughly $0.04 to $0.05 per share of EPS impact. He cited 25.2% cost of sales, 31.4% labor, 16.4% operating costs, and $7.1 million of G&A, plus a strong balance sheet with $56.4 million in cash, no debt, and $25 million available on the revolver. He also highlighted $7.3 million in share repurchases in the quarter and $13.8 million remaining under the repurchase authorization through December 31, 2024.

Analysts pressed on the weak comp trend, weather impacts, and whether softer sales could alter the 2025 development plan; management said it was too early to change plans and that 2025 development would not be affected for now. Questions also focused on how comps could improve later in the year, with management pointing to the rollout of ezCater, easier Uber Eats comparisons later in the year, and a more favorable sequential comp setup. On costs, management said Q2 commodity inflation should be 2% to 3% versus prior year, rising somewhat in the back half, while labor inflation is now tracking closer to 4% to 5% rather than fully mid-single digits.