Chuy''S Holdings, Inc. (NASDAQ:CHUY)

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Friday, April 12, 2013

Investor Alert

CHUY is trading down in today's session.

Yesterday, the GeoTeam released an originally Premium report, which was subsequently published on Seeking Alpha.

Our premium members received the following, as well as a link to the report.

In this article, we discuss factors that led us to conclude that CHUY's current valuation, partly supported by little liquidity for its stock, does not take into account significant risks, all of which should give current or prospective investors pause.

Insiders are liquidating most of their stock holdings;
CHUY boasts a P/E of 49X estimated 2013 EPS despite the fact that it expected to report flat 2013 non-GAAP EPS growth;
CHUY trades at 25X its EV/EBITDA while its peers trade at 8 to 12X;
P.F. Chang's, with better metrics and product offerings, went private in early 2012 at an EV/EBITDA multiple of 8.5X;
EV/restaurant of $14.4 million is 5X the capex and start-up costs of the average restaurant; and
CHUY is now a public company that in many ways is still managed as a privately-held business. No less than 20 related transactions are disclosed in SEC filings, many of which we feel should have been renegotiated or terminated as part of the IPO (cleansing) process.

Please see our entire report first viewed by our Premium Members here.

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Monday, April 8, 2013

Comments & Business Outlook

AUSTIN, Texas, April 8, 2013 (GLOBE NEWSWIRE) -- Chuy's Holdings, Inc. (the "Company") (Nasdaq:CHUY) today announced preliminary unaudited sales results for its first quarter ended March 31, 2013.

For the first fiscal quarter of 2013, total revenues were approximately $46.7 million, an increase of 24.5% compared to revenues of $37.5 million in the first fiscal quarter of 2012. The Company's comparable restaurant sales increased approximately 2.3% for the 13-week period ended March 31, 2013 compared to the 13-week period ended April 1, 2012. The increase in comparable sales was driven by a 2.2% increase in average check and a 0.1% increase in average weekly customers.

Due to the inclusion of a 53rd week in fiscal 2012, there is a one-week calendar shift in the comparison of the first fiscal quarter of 2013 ended March 31, 2013, to the first fiscal quarter of 2012 ended March 25, 2012. As a result, our comparable restaurant sales calculation is based on comparing sales in the first fiscal quarter of 2013 to sales in the corresponding calendar period of 2012. Sales for the same 27 restaurants in the comparable restaurant base in the fiscal first quarter ended March 31, 2013 increased 1.0% compared to the first fiscal quarter of 2012 ended March 25, 2012.

Preliminary results remain subject to the completion of normal quarter-end accounting procedures and adjustments and are subject to change. The Company expects to release financial and operating results for its first quarter ended March 31, 2013 during the week of May 6^th.

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