The secondary offering put 3.0 million more shares in the public float. The shares were locked up before now. Note the shares were sold by early investors and insiders so if they are selling you have to wonder why. I guess they decided to take the money and run. CHUY's current market cap is not sustainable.
No - The institutional investors know that Chuy's has 15 years of 20% + growth. In an environment of long term bond rates that are 3%, that is significant. Do not focus on the current PE because they only have 41 stores and can grow the base to 500 stores. Solid management, fresh food. I took a survey of those I know and asked them about Chuy's and all thumbs up on food, experience, and pricing. Invest like Warren Buffet. Buy what you like - the brand.