A Strong Quarter Pushes Chuy's Guidance Higher
Chuy's Holdings (NASDAQ: CHUY) has a reputation for serving some of the best Tex-Mex cuisine in the country. The Texas-based restaurant company has gone far beyond its routes, spreading its locations into dozens of states from Colorado and Illinois to Maryland and Florida. The ups and downs of the broader restaurant industry have affected Chuy's results along the way, but the company has worked hard to come up with a strategic vision that can lead to sustained growth.
Coming into Thursday's second-quarter financial report, Chuy's shareholders were expecting that continued labor cost pressures would likely bring about a modest earnings decline, even as sales growth remained solid. Chuy's results were better than that, and more optimistic guidance for the full year showed that the efforts the company has made are paying off.
Chuy's second-quarter numbers were generally favorable. Revenue rose 6.4% to $113.1 million, which was more than $1 million higher than what most of those following the stock were expecting from the Tex-Mex chain. Adjusted net income rose at a 9% rate to $7.1 million, and that produced adjusted earnings of $0.42 per share, topping the $0.37-per-share consensus forecast among investors.
Source Fool.com
