Revenue Grew 15 Percent at Chuy’s in 2016 | Food Newsfeed
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Revenue Grew 15 Percent at Chuy’s in 2016

March 01, 2017 Industry News
Industry News

Chuy’s Holdings, Inc. announced financial results for the 13-week and 52-week periods ended December 25, 2016.

Highlights for the fourth quarter ended December 25, 2016 were as follows:

  • Revenue increased 11.4 percent to $79.1 million from $71 million in the fourth quarter of 2015.
  • Comparable restaurant sales decreased 1.1 percent as compared to the same period in 2015.
  • Three new restaurants opened during the fourth quarter of 2016.

Highlights for the fiscal year ended December 25, 2016 were as follows:

  • Revenue increased 15.2 percent to $330.6 million from $287.1 million in the 2015 fiscal year.
  • Comparable restaurant sales increased 0.8 percent as compared to the same period in 2015.
  • A total of twelve new restaurants opened during 2016.

Steve Hislop, president and chief executive officer of Chuy’s Holdings, Inc. says, “We grew our revenue over 15 percent during 2016, drove positive comparable store sales for the seventh year in a row and produced adjusted net income growth of 17 percent. We also successfully opened 12 new Chuy’s restaurants during the year, a 17 percent increase in our store base and a key driver of our growth. We have now opened 72 restaurants in 15 states in the last 106 months bringing our total count to 80 restaurants as of December 25, 2016.”

“For 2017, we are on track to open 12 to 14 new restaurants, including a healthy blend of new and existing markets. This year will include our first restaurants in Denver, Chicago and Miami. We continue to believe we have a huge runway for growth ahead of us and remain excited about the long-term prospects of the Chuy’s brand.”

Fourth Quarter 2016 Financial Results

Revenue increased 11.4 percent to $79.1 million in the fourth quarter of 2016 compared to $71 million in the fourth quarter of 2015. The increase was primarily driven by $10.9 million in incremental revenue from an additional 162 operating weeks provided by 16 new restaurants opened during and subsequent to the fourth quarter of 2015. This increase was partially offset by a decrease in revenue related to our non-comparable restaurants that are not included in the incremental revenue discussed above. Revenue for these non-comparable restaurants is historically lower as the restaurants transition out of the “honeymoon” period that follows a restaurant's initial opening.

Comparable restaurant sales decreased 1.1 percent during the fourth quarter of 2016 as compared to the fourth quarter of 2015. The decrease in comparable sales was driven by a 1.3 percent increase in average check and a 2.4 percent decrease in average weekly customers. Comparable restaurant sales and average weekly customers were negatively affected by approximately 100 to 120 basis points during the fourth quarter of 2016 due to unfavorable weather and Christmas shifting from Friday to Sunday. The comparable restaurant base consisted of 61 restaurants during the fourth quarter of 2016.

Total restaurant operating costs as a percentage of revenue increased to 83.3% in the fourth quarter of 2016 from 81.7 percent in the fourth quarter of 2015. This increase was primarily driven by higher labor costs as a percentage of revenue due to new store labor inefficiencies and hourly labor rate inflation. The increase was partially offset by a decrease in food costs.

During the fourth quarter of 2016, the company incurred $1.1 million of pre-tax closure costs related to the closing and relocation of one restaurant in Charlotte, North Carolina. During the fourth quarter of 2015, the company incurred a $4.4 million pre-tax loss on asset impairment related to three restaurants.

Fiscal Year 2016 Financial Results

Revenue increased 15.2 percent to $330.6 million in fiscal 2016 compared to $287.1 million in fiscal 2015. The increase was primarily driven by $47 million in incremental revenue from an additional 596 operating weeks provided by 22 new restaurants opened during and subsequent to fiscal 2015. This increase was partially offset by a decrease in revenue related to our non-comparable restaurants that are not included in the incremental revenue discussed above. Revenue for these non-comparable restaurants is historically lower as the restaurants transition out of the 'honeymoon' period that follows a restaurant's initial opening.

Comparable restaurant sales increased 0.8 percent during fiscal 2016 as compared to fiscal 2015. The increase in comparable sales was driven by a 1.5 percent increase in average check and a 0.7 percent decrease in average weekly customers. Comparable restaurant sales and average weekly customers were negatively affected by approximately 20 to 40 basis points during fiscal 2016 primarily due to unfavorable weather and Christmas shifting from Friday to Sunday.

Total restaurant operating costs as a percentage of revenue increased to 80.7 percent in fiscal 2016 from 80.3 percent in fiscal 2015. This increase was primarily driven by higher labor costs as a percentage of revenue due to new store labor inefficiencies and hourly labor rate inflation. The increase was partially offset by a decrease in food costs.

During fiscal 2016, the company incurred $1.5 million of pre-tax closure costs related to the closing and relocation of one restaurant in Charlotte, North Carolina.

Development Update

During the fourth quarter, three new Chuy’s restaurants were opened in Rockville, Maryland, Corpus Christi, Texas and Charlotte, North Carolina. There were 80 Chuy’s restaurants in operation as of the end of the fourth quarter of 2016.

Subsequent to the end of the fourth quarter, two additional Chuy’s restaurants were opened in Cedar Park, Texas and Cumberland, Georgia.

News and information presented in this release has not been corroborated by FSR, Food News Media, or Journalistic, Inc.