Chuy's Holdings Inc (CHUY) Reports 6.4% Revenue Increase and 41.8% Net Income Boost in Q3 2023
Chuy's Holdings Inc (NASDAQ:CHUY) reported a 6.4% increase in revenue to $113.5 million in Q3 2023 compared to $106.7 million in Q3 2022.
Net income increased by 41.8% to $7.1 million, or $0.39 per diluted share, compared to $5.0 million, or $0.27 per diluted share, in Q3 2022.
Restaurant-level operating margin increased by 17.6% to $22.0 million compared to $18.7 million in Q3 2022.
The company opened its third restaurant of the year in Harker Heights, TX, bringing the total to 100 restaurants.
Chuy's Holdings Inc (NASDAQ:CHUY) announced its financial results for the third quarter ended September 24, 2023, on November 2, 2023. The company reported a 6.4% increase in revenue, reaching $113.5 million compared to $106.7 million in the third quarter of 2022. The increase was primarily due to an increase in comparable restaurant sales and incremental revenue from new restaurants opened during and subsequent to the third quarter of 2022.
Financial Highlights
Net income for the quarter increased by $2.1 million, or 41.8%, to $7.1 million, or $0.39 per diluted share, compared to $5.0 million, or $0.27 per diluted share, in the third quarter of 2022. Adjusted net income increased by $2.0 million, or 33.0%, to $7.9 million, or $0.44 per diluted share, compared to $5.9 million, or $0.31 per diluted share, in the third quarter of 2022.
Restaurant-level operating margin increased by $3.3 million, or 17.6%, to $22.0 million compared to $18.7 million in the third quarter of 2022. As a percentage of revenue, the restaurant-level operating margin increased 190 points to 19.4% compared to 17.5% in the third quarter of 2022.
The company's cash and cash equivalents were $69.9 million, and there was no debt outstanding with $35.0 million available under its revolving credit facility.
Company's Commentary
Steve Hislop, President and Chief Executive Officer of Chuys Holdings, Inc., stated,
Our solid third quarter performance was a direct result of our teams continued progress in executing our initiatives to drive sustainable top-line growth and profitability. For the quarter, we grew revenue by over 6% and posted a comparable sales increase of 2%. We were also able to achieve one of the best restaurant-level operating margins in the casual dining industry segment at 19.4% through our continued focus on four-wall operational excellence. Overall, we believe our business fundamentals remain strong and our team is eager and energized to provide our customers with the unique Chuys experience they have come to expect when they visit our restaurants.
Future Outlook
For 2023, the company expects adjusted net income per diluted share of $1.85 to $1.90 as compared to net income per diluted share of $1.11 and adjusted net income per diluted share of $1.37 in fiscal 2022. The company also plans to open four new restaurants in 2023.
Explore the complete 8-K earnings release (here) from Chuy's Holdings Inc for further details.
This article first appeared on GuruFocus.
