Chuy’s ( NASDAQ: CHUY ) stock surged 10% on Friday after surpassing Q4 expectations and guiding for continued strength in 2023.
The Texas-based restaurant chain notched $0.27 in earnings per share for the fourth quarter on $104.4M in revenue. Both figures came in stronger than expected, while comparable restaurant sales growth of 3.4% for the quarter also outpaced the 2.81% consensus estimate. Restaurant level operating margin expanded 270 basis points over 2019 levels amid menu price increases
“We saw strong comparable sales growth across all periods and importantly our momentum has continued into January,” CEO Steve Hislop told analysts on Thursday evening. “We believe our fresh made-from-scratch food and drinks at an incredible value continue to resonate with our guests and are the driving force behind our growth regardless of how our guests choose to access the brand.”
He added that demand has remained strong despite a 3.5% menu price increase implemented in January. Aided by pricing moves, the company anticipates between $1.60 and $1.65 in earnings per share for 2023, above the analyst consensus at $1.46. Hislop added that the company “will reevaluate [menu prices] as necessary given the macro environment” in 2023, but currently no plans for further price increases are in place.
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Chuy's shares charge higher on earnings beat, optimistic profit outlook