Chuy’s sees check, traffic increase in 1QChuy’s sees check, traffic increase in 1Q

Chuy’s Holdings Inc. benefited from traffic and price increases to post its 23rd period of same-store sales growth in the first quarter ended March 27, the company said Tuesday.

The Austin, Texas-based Mexican casual-dining chain reported same-store sales up 3.2 percent in the quarter over last year.

Jon Howie, Chuy’s chief financial officer, said in an earnings call that the same-store sales increase was driven by a 2.1 percent increase in average check and a 1.1 increase in restaurant traffic. Check was boosted by price increases in the quarter.

“During the first quarter, we lapped last year's 2.5 percent in menu price increases in early February and implemented a new price increase of approximately 1.5 percent,” Howie said.

Andy Barish, an analyst with Jeffries LLC, said in a note that Chuy’s management expects same-store sales for the remainder of 2016 to be about 2 percent.

Same-store sales had “slowed in Houston and San Antonio vs. 4Q, but remain positive, while Dallas and Austin have remained consistent,” Barish noted.

For the quarter, Chuy’s reported income was up 40.1 percent, to $4.5 million, or 27 cents a share, from $3.2 million, or 19 cents a share, in the prior-year period. Revenue increased 16.8 percent, to $78.1 million, up from $66.8 million in the same period last year.

“For 2016, we continue to expect to open 11 to 13 new restaurants,” Hislop said. “As we have previously noted, we have leases signed for the balance of our 2016 development plan and expect the cadence of our openings to be concentrated in the middle two quarters of the year.”

Founded in Austin in 1982, Chuy’s owns and operates 74 full-service restaurants in 15 states.

Contact Ron Ruggless at [email protected]
Follow him on Twitter: @RonRuggless