Chuy’s ( NASDAQ: CHUY ) stock rose sharply on Friday after posting stronger than expected Q3 earnings that featured resilient margins amid inflationary pressure.
For the third quarter, adjusted $0.31 in earnings per share came in $0.06 above expectations while a 4.6% rise in revenue from 2021 also exceeded expectations narrowly . Management highlighted 2.6% comparable restaurant sales growth from the prior year, marking a modest increase even from pre-pandemic levels.
"We are pleased with our third quarter results, which included strong comparable sales growth and top line momentum in August and September following a softer July as a result of record high temperatures in Texas,” CEO Steve Hislop said. I am very proud of our team and their constant focus on cost management and operating efficiencies in this challenging macroeconomic environment, including 21% food inflation.”
Labor costs also increased by 1.2% in the third quarter. Despite the elevated input costs, Hislop indicated that operating margin expanded by 300 basis points from pre-pandemic levels.
Elsewhere, the company purchased $12.8M worth of stock in the third quarter. The board authorized the repurchase up to $50M of its common shares outstanding through the close of 2024.
Shares of the Texas-based restaurant chain rose 8.38% on Friday after the positive print .
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Chuy's stock charges higher on strong comparable sales, profit growth