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Chuy's (CHUY) investor relations material
Chuy's Q2 2024 earnings summary
Complete event summary combining all related documents: earnings call transcript, report, and slide presentation.
Executive summary
Revenue for Q2 2024 was $119.8 million, up 0.7% year-over-year, driven by new restaurant openings but offset by a 2.2% decrease in comparable restaurant sales.
Net income for Q2 2024 was $7.4 million, down 30.9% compared to $10.7 million in Q2 2023, mainly due to higher impairment and closed restaurant costs.
The company entered into a merger agreement with Darden Restaurants, Inc. on July 17, 2024, with shareholders to receive $37.50 per share in cash upon closing.
Financial highlights
Q2 2024 revenue increased by $0.8 million to $119.8 million; YTD revenue decreased 0.5% to $230.3 million.
Q2 2024 net income was $7.4 million (6.2% margin), down from $10.7 million (9.0%) in Q2 2023; YTD net income was $14.3 million, down from $19.0 million.
Diluted EPS for Q2 2024 was $0.43, compared to $0.59 in Q2 2023; YTD diluted EPS was $0.83, down from $1.04.
Cost of sales as a percentage of revenue rose to 25.6% in Q2 2024 from 24.7% in Q2 2023 due to commodity inflation.
Labor costs increased to 30.0% of revenue in Q2 2024, up from 29.5% in Q2 2023, reflecting wage inflation and improved staffing.
Outlook and guidance
The merger with Darden is expected to close in Q4 2024, subject to customary conditions including shareholder and regulatory approvals.
The company expects continued pressure on comparable restaurant sales and margins due to inflation and labor costs.
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