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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.
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Q2 2024 earnings summary9 Aug, 2024

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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Frequently asked questions

Chuy's Holdings Inc owns and operates a chain of full-service restaurants serving Mexican and Tex-Mex cuisine. The company offers a menu of made-from-scratch dishes in a casual dining atmosphere, primarily across the southern and southeastern United States. The company is headquartered in Austin, Texas, and its shares are listed on the NASDAQ.

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