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rs,, ders olde khol ockh Stoc De ar St Dear 2023 was a year of progress for Chuy s and I could not be prouder of our team for their execution of our four-wall operations and our initiatives that continue to make us stronger each year. For the year, we grew revenues by 9.3%, driven by approximately 3.3% growth in comparable restaurant sales which increased net income by 51.1% to $10.6 million and generated 200 basis point expansion in restaurant-level operating margins* to over 20%, representing our best result in over a decade excluding the covid-impacted 2021 and among the best in the industry; successfully opened four new restaurants; and returned almost $28.9 million to our shareholders through share repurchases. These results were truly a testament to the hard work and dedication of each of our team members in providing our customers with the unique Chuy s experience we all know and love. Our high-quality, made-from-scratch food and drinks, offered at an incredible value is what keeps our customers coming back for more. To that end, menu development continues to be a major growth driver for our brand and we are excited at the tremendous progress we made with our Chuy s Knock Outs (CKOs) platform throughout the year in driving traffic to our restaurants. During the fourth quarter, we introduced our first barbell approach to the CKO platform, resulting in our second most successful CKO campaign to date. In addition to our CKOs, we also continued to strategically innovate with our food offerings to satisfy our customers taste buds by adding some new items to our permanent menu, including a high-demand guest favorite from past years. Here at Chuy s, we want our customers to be able to enjoy our offerings anytime and anywhere they choose. For us, that means engaging with more of our off-premise channels, currently mixing at approximately 29% for 2023. We continued to see strength in our delivery business and we leaned into catering. During the third quarter, we started the rollout of our new partnership with the ezCater platform and have a plan in place to complete this rollout within the second quarter of 2024 as we strive to capitalize on the catering opportunities in front of us. We are excited to see the growth potential of our off-premises channels in the years to come. We remain pleased with our marketing initiatives as we promote our digital presence across the most popular platforms: Meta, Google, YouTube, TikTok, Yelp, organic influencer programs and promotional advertisements with our delivery partners. We believe this approach will continue to help us connect with current and new customers in a variety of ways to share our defining differences, from our made-from-scratch food and drinks offered at an incredible value, to our unique CKO offerings and the unique overall experience at every Chuy s restaurant. Lastly, we successfully opened four new restaurants during 2023 and we are thrilled with the momentum of our recent openings thus far. For 2024, we continue to have a robust pipeline with a goal to open between six to eight new restaurants, focusing primarily at core markets where our concept is already proven with high average unit volumes and brand awareness. We are proud of our development team for keeping us on track regardless of the construction hurdles along the way and are eager to share the Chuy s experience with more customers. As we look ahead, we believe the long-term prospect of our business remains healthy and we are excited with what 2024 has in store for us. With a focus on four-wall operational excellence, a robust unit growth pipeline and strategic capital allocation, we look forward to capitalizing on the incredible long-term opportunities ahead for our brand. Sincerely, Steven J. Hislop Chairman, President and Chief Executive Officer Made From Scratch Recipes Served By The Friendliest Employees in The World Margaritas Ma de With Hand-Squeeze d Lime Juice illas Fresh Tort All Day t s A value tha at hard to be Authentic, signature sauces and fresh salsa fresca Hand-Pulled, Freshlyy made daily Roasted Chickenn 2023 HIGHL 2023 HIGHLIGHTS HIGHLIGHTS HIGH Highlights for the 53 week fiscal year ended December 31, 2023, as compared to the 52 week fiscal year ended December 25, 2022, were as follows: Revenue increased 9.3% to $461.3 million compared to $422.2 million in fiscal 2022. The extra operating week in fiscal 2023 contributed approximately $8.7 million in revenue. Comparable restaurant sales increased 3.3% as compared to fiscal 2022 (52 weeks vs. 52 weeks). Net income increased $10.6 million, or 51.1%, to $31.5 million, or $1.76 per diluted share, as compared to $20.9 million, or $1.11 per diluted share, in fiscal 2022. Adjusted net income* increased $9.5 million, or 36.9%, to $35.3 million, or $1.97 per diluted share, as compared to $25.8 million, or $1.37 per diluted share, in fiscal 2022. Restaurant-level operating margin* increased $16.4 million, or 21.5%, to $93.1 million as compared to $76.7 million in fiscal 2022. Restaurant-level operating margin* as a percentage of revenue increased 200 basis points to 20.2%, compared to 18.2% in fiscal 2022. *Adjusted net income and restaurant-level operating margin are non-GAAP measures. For reconciliations of adjusted net income and restaurant-level operating margin to the most directly comparable GAAP measure, see the accompanying financial tables. For a discussion of why we consider them useful, see Non-GAAP Measures below. See Forward-Looking Statements in our Annual Report on Form 10-K included herein for information with respect to forward-looking statements included in this 2023 Annual Report.

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CHUY Shareholder/Stockholder Letter Transcript:


rs,,
ders
olde
khol
ockh
Stoc
De
ar St
Dear
2023 was a year of progress for Chuy   s and I could not be prouder of our team for
their execution of our four-wall operations and our initiatives that continue to make us
stronger each year. For the year, we grew revenues by 9.3%, driven by approximately
3.3% growth in comparable restaurant sales which increased net income by 51.1% to
$10.6 million and generated 200 basis point expansion in restaurant-level operating
margins* to over 20%, representing our best result in over a decade excluding the
covid-impacted 2021 and among the best in the industry; successfully opened four
new restaurants; and returned almost $28.9 million to our shareholders through share
repurchases. These results were truly a testament to the hard work and dedication of
each of our team members in providing our customers with the unique Chuy   s
experience we all know and love.
Our high-quality, made-from-scratch food and drinks, offered at an incredible value
is what keeps our customers coming back for more. To that end, menu development
continues to be a major growth driver for our brand and we are excited at the
tremendous progress we made with our Chuy   s Knock Outs (CKOs) platform
throughout the year in driving traffic to our restaurants. During the fourth quarter,
we introduced our first barbell approach to the CKO platform, resulting in our second
most successful CKO campaign to date. In addition to our CKOs, we also continued
to strategically innovate with our food offerings to satisfy our customers    taste buds
by adding some new items to our permanent menu, including a high-demand guest
favorite from past years.
Here at Chuy   s, we want our customers to be able to enjoy our offerings anytime and
anywhere they choose. For us, that means engaging with more of our off-premise
channels, currently mixing at approximately 29% for 2023. We continued to see strength
in our delivery business and we leaned into catering. During the third quarter, we started
the rollout of our new partnership with the ezCater platform and have a plan in place to
complete this rollout within the second quarter of 2024 as we strive to capitalize on the
catering opportunities in front of us. We are excited to see the growth potential of our
off-premises channels in the years to come.
We remain pleased with our marketing initiatives as we promote our digital presence
across the most popular platforms: Meta, Google, YouTube, TikTok, Yelp, organic
influencer programs and promotional advertisements with our delivery partners. We
believe this approach will continue to help us connect with current and new customers
in a variety of ways to share our defining differences, from our made-from-scratch food
and drinks offered at an incredible value, to our unique CKO offerings and the unique
overall experience at every Chuy   s restaurant.
Lastly, we successfully opened four new restaurants during 2023 and we are thrilled
with the momentum of our recent openings thus far. For 2024, we continue to have
a robust pipeline with a goal to open between six to eight new restaurants, focusing
primarily at core markets where our concept is already proven with high average
unit volumes and brand awareness. We are proud of our development team for
keeping us on track regardless of the construction hurdles along the way and are
eager to share the Chuy   s experience with more customers.
As we look ahead, we believe the long-term prospect of our business remains healthy
and we are excited with what 2024 has in store for us. With a focus on four-wall
operational excellence, a robust unit growth pipeline and strategic capital allocation,
we look forward to capitalizing on the incredible long-term opportunities ahead for
our brand.
Sincerely,
Steven J. Hislop
Chairman, President and
Chief Executive Officer
Made From Scratch
Recipes Served
By The Friendliest
Employees in The World
Margaritas Ma
de With
Hand-Squeeze
d
Lime Juice
illas
Fresh Tort
All Day
t   s
A value tha
at
hard to be
Authentic, signature
sauces and fresh
salsa fresca
Hand-Pulled, Freshlyy
made daily
Roasted Chickenn
2023
HIGHL
2023 HIGHLIGHTS
HIGHLIGHTS
HIGH
Highlights for the 53 week fiscal year ended December
31, 2023, as compared to the 52 week fiscal year ended
December 25, 2022, were as follows:
Revenue increased 9.3% to $461.3 million compared to
$422.2 million in fiscal 2022. The extra operating week
in fiscal 2023 contributed approximately $8.7 million in
revenue.
Comparable restaurant sales increased 3.3% as
compared to fiscal 2022 (52 weeks vs. 52 weeks).
Net income increased $10.6 million, or 51.1%, to $31.5
million, or $1.76 per diluted share, as compared to
$20.9 million, or $1.11 per diluted share, in fiscal 2022.
Adjusted net income* increased $9.5 million, or
36.9%, to $35.3 million, or $1.97 per diluted share, as
compared to $25.8 million, or $1.37 per diluted share,
in fiscal 2022.
Restaurant-level operating margin* increased $16.4
million, or 21.5%, to $93.1 million as compared to $76.7
million in fiscal 2022. Restaurant-level operating margin*
as a percentage of revenue increased 200 basis points
to 20.2%, compared to 18.2% in fiscal 2022.
*Adjusted net income and restaurant-level operating margin are non-GAAP
measures. For reconciliations of adjusted net income and restaurant-level operating
margin to the most directly comparable GAAP measure, see the accompanying
financial tables. For a discussion of why we consider them useful, see    Non-GAAP
Measures    below.
See    Forward-Looking Statements    in our Annual Report on Form 10-K included
herein for information with respect to forward-looking statements included in this
2023 Annual Report.





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