U.S. markets closed

Factors Setting the Tone for Chuy's (CHUY) Earnings in Q4

Zacks Equity Research

Chuy's Holdings, Inc. CHUY is scheduled to report fourth-quarter 2019 results on Mar 5. In the last reported quarter, the company’s earnings beat the Zacks Consensus Estimate by 19.1%.

Q4 Expectations

The Zacks Consensus Estimate for fourth-quarter earnings is pegged at 12 cents, suggesting an improvement of 9.1% from the year-ago quarter. Over the past 30 days, the company’s earnings estimates have been stable. For quarterly revenues, the consensus mark is pegged at $102 million, indicating growth of 5.3% from the prior-year reported figure.

Factors Likely to Impact Q4 Results

Increase in comparable restaurant sales, digital marketing efforts, restaurant openings and sales building efforts are likely to have benefited fourth-quarter 2019 results. The Zacks Consensus Estimate for comparable restaurant sales in the quarter to be reported is likely to have increased 2.1%.

Moreover, the company’s off-premise strategy is likely to have aided the company’s top line in the quarter. However, higher marketing and rental expenses might have impacted the company’s bottom line.

Chuy's Holdings, Inc. Price and EPS Surprise

 

Chuy's Holdings, Inc. Price and EPS Surprise

What Does the Zacks Model Unveil

Our proven model does not conclusively predict an earnings beat for Chuy's this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. But that's not the case here.

You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Chuy's has a Zacks Rank #3 and an Earnings ESP of 0.00%.  You can see the complete list of today’s Zacks #1 Rank stocks here.

Peer Releases

The Wendy's Company’s WEN reported mixed fourth-quarter 2019 results, adjusted earnings of 8 cents per share lagged the Zacks Consensus Estimate of 9 cents by 11.1%. The bottom line also plunged 50% year over year, primarily due to decline in adjusted EBITDA. However, quarterly revenues of $427.2 million beat the consensus mark of $423.6 million by 0.8%. The top line also improved 7.4% from the year-ago quarter’s figure on increased sales from company-operated restaurants and franchise royalties.

Papa John’s International, Inc. PZZA reported fourth-quarter 2019, adjusted earnings of 37 cents per share beat the Zacks Consensus Estimate of 32 cents by 15.6%. The bottom line also soared 105.6% from the year-ago quarter’s reported figure. Revenues totaled $417.5 million, which outpaced the Zacks Consensus Estimate of $406.5 million.

Cracker Barrel Old Country Store, Inc. CBRL reported mixed second-quarter fiscal 2020 results, with earnings surpassing the Zacks Consensus Estimate and revenues missing the same. Adjusted earnings came in at $2.70 per share, which outpaced the Zacks Consensus Estimate of $2.44 by 10.7%. The bottom line also increased 7.1% year over year. Revenues of $846.1 million missed the consensus mark of $847.6 million by 0.2% but increased 4.2% from the prior-year quarter’s figure.

Looking for Stocks with Skyrocketing Upside?

Zacks has just released a Special Report on the booming investment opportunities of legal marijuana.

Ignited by new referendums and legislation, this industry is expected to blast from an already robust $6.7 billion to $20.2 billion in 2021. Early investors stand to make a killing, but you have to be ready to act and know just where to look.

See the pot trades we're targeting>>

Click to get this free report The Wendy's Company (WEN) : Free Stock Analysis Report Papa John's International, Inc. (PZZA) : Free Stock Analysis Report Cracker Barrel Old Country Store, Inc. (CBRL) : Free Stock Analysis Report Chuy's Holdings, Inc. (CHUY) : Free Stock Analysis Report To read this article on Zacks.com click here. Zacks Investment Research