- CHUY’s is far from a sexy story. It’s a restaurant chain, with weak earnings growth, founded 40 years ago, that appears unable to breakout beyond a few U.S. regions.
- Its restaurants, however, are another story. They are fun and exciting and offer excellent food.
- Shift in strategy is required for the firm to achieve the substantial potential its restaurants clearly demonstrate.
- Nevertheless, CHUY is undervalued, as our DCF model generates a fair value of $40/share. Therefore, we’ve a Buy Rating on the stock.
For further details see:
Chuy's Holdings Inc.: So Much Potential Turning To Dust