Chuy's 1Q preview shows sales growth

First-quarter same-store sales rose 2.3 percent for Chuy’s Holdings Inc., with nearly all of the increase coming from higher check averages, according to a preliminary report released by the company on Monday.

Austin, Texas-based Chuy’s, which owns and operates 41 Tex-Mex-themed restaurants, was one of the first public casual-dining companies to release preliminary sales figures for the first quarter, which many consultants have warned has been a challenging one.

Chuy’s said the same-store sales increase for the quarter ended March 31 was driven by a 2.2-percent hike in average check and a 0.1-percent growth in average weekly customers. Chuy’s had 27 restaurants open for the 18 months or more required for its same-store comparisons.

Industrywide, January and February same-store sales have been especially dismal in the wake of the Jan. 1 end of the payroll tax holiday and rising gasoline prices. February showed the biggest sales decline in three years, according to the most recent NRN-MillerPulse survey, which found overall industry same-store sales fell 1.8 percent and guest traffic declined 2.9 percent for the month.

The most recent Restaurant Industry Snapshot by Black Box Intelligence and People Report indicated same-store sales fell 5 percent in February, compared with January’s increase of 0.4 percent. Traffic showed a decline of 6.2 percent, worse than January's decline of 3.1 percent, the snapshot found.

Chuy’s said Monday preliminary revenues in its first quarter were about $46.7 million, an increase of 24.5 percent over the prior-year quarterly revenues of $37.5 million. The company will release full earnings results during the week of May 6.

On Feb. 25, Chuy’s reported fourth-quarter net income of $2.6 million, or five cents per share, compared with $300,000 in the same period a year ago. Revenue during the quarter, which ended Dec. 30, increased 40.3 percent to $46.7 million, from $33.3 million in the prior-year period. Chuy’s added eight new casual-dining restaurants in 2012.

Same-store sales in the 14-week fourth quarter increased 5.2 percent for Chuy's. However, same-store sales increased 3 percent, excluding from the comparison the positive impact of an extra 1.5 operating days because of the Christmas holiday, the company reported.

The rise in same-store sales was driven by a 2.1-percent increase in average check and a 0.9-percent increase in traffic, the company added. The same-store comparison was based on 24 restaurants.

Chuy’s has full-service restaurants in eight states.

Contact Ron Ruggless at [email protected].
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