- Chuy's Holdings released its Q2 results earlier this month, reporting Q2 revenue of $108.2 million, a 65% improvement year-over-year, but a 4% decline on a two-year basis.
- Notably, while sales were down, margins improved materially, with restaurant-level margins hitting a record figure, setting the company up for robust annual EPS growth in FY2021.
- Having said that, Q2 is generally the strongest quarter and margins should normalize at slightly lower levels in FY2022.
- So, while Chuy's has seen a solid recovery and is reasonably priced at 1.6x forward sales, I think there are better opportunities elsewhere in the market currently.
For further details see:
Chuy's Holdings: Valuation Improving After The Drop