On this page of StockholderLetter.com we present the 6/7/2023 shareholder letter from CHUY'S HOLDINGS, INC. — ticker symbol CHUY. Reading current and past CHUY letters to shareholders can bring important insights into the investment thesis.

 •  6/7/2023 Letter Continued (Full PDF)
 •  6/13/2024 CHUY Stockholder Letter
 •  More "Hotels" Category Stockholder Letters
 •  CHUY Benford's Law Stock Score = 93

CHUY 6/7/2023 Shareholder/Stockholder Letter Transcript:

Dear Stockholders,
I am thrilled with what Chuy   s was able to accomplish in 2022. For the year, we
drove top-line sales growth of 6.5% through 4.5% comparable restaurant sales
growth; maintained restaurant-level margins above pre-pandemic levels;
successfully opened three new restaurants; and returned $41.7 million to
shareholders through our share repurchase program. That said, none of these
accomplishments would have been possible without the extraordinary effort of
our team members showing up daily to provide our guests with the unique
Chuy   s experience through high-quality, made-from-scratch food and drinks,
offered at an affordable value.
To further capitalize on our positive momentum, we have been focusing on our
four-wall operational initiatives, starting with staffing at our restaurants. The key
to proper staffing is in retention of our team members at both the hourly and
managerial levels. To that end, during 2022, we implemented a variety of
initiatives that continue to aid our team in providing the best guest experience,
including the introduction of a team member referral program, retention bonus
program for our managers and, most recently, our new mental health and
personal counseling benefits for all of our team members.
Turning to menu innovation, we were thrilled to introduce the Chuy   s Knockoutss
platform to our guests last year, which combines old favorites with exciting new
items offered on a limited time basis. Since its introduction in October, this
platform has driven incremental traffic and continues to bring excitement to
both our guests and team members alike.
We have also focused on engaging our off-premise consumer with the
off-premise channel sales mix at approximately 27% for the year, above our
long-term target mix of mid-20s. The delivery channel helped drive our
off-premise growth as consumers embrace the opportunity to enjoy Chuy's
high-quality, made-from-scratch food from the comfort of their own home.
Moreover, we continued to fill out our existing catering markets and are on
track to expand to several other markets in 2023.
In terms of marketing initiatives, we continued to emphasize our digital presence
across many popular platforms, including TikTok, YouTube video advertising,
influencer programs on Instagram and a digital DoorDash partnership. During
2022, we also revamped our website to match our revolutionizing vision to
connect and provide the best overall experience for our guests.
Lastly, while we successfully opened three new restaurants during 2022 and are
pleased with their performance to date, we are particularly excited about the
organic growth opportunities ahead for the brand through accelerated unit
expansion. To that end, we have developed a robust pipeline for 2023, including
six to seven new restaurants in developed markets with a track-record of high
average unit volumes and brand awareness. Unit development still proves to be
challenging with construction delays, supply chain shortages and increased
construction costs; however, we are proud of what our team has accomplished
thus far and excited to further expand the Chuy   s brand going forward.
In closing, we believe our business fundamentals remain strong and the
initiatives we   ve put in place have positioned us to capitalize on the
opportunities ahead. Together with our disciplined capital allocation and
accelerated unit growth plan, we believe we've put Chuy's on the path to
maximize shareholder value in 2023 and beyond.
Sincerely,
Steven J. Hislop
Chairman, President and Chief Executive Officer
Made From Scratch
Recipes Served
By The Friendliest
Employees in The World
Margaritas Ma
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Hand-Squeeze
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Lime Juice
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A value tha
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hard to be
Authentic, signature
sauces and fresh
salsa fresca
Hand-Pulled, Freshly
made daily
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2022 HIGH
HIGHLIGHTS
Revenue increased 6.5% to $422.2 million compared
to $396.5 million in fiscal 2021.
Comparable restaurant sales increased 4.5% as
compared to fiscal 2021 and increased 0.6% as
compared to fiscal 2019.
Net income was $20.9 million, or $1.11 per diluted
share, as compared to $30.2 million, or $1.50 per
diluted share, in fiscal 2021. Net income increased
$14.7 million from pre-pandemic net income of $6.2
million, or $0.37 per diluted share, in fiscal 2019.
Adjusted net income* was $25.8 million, or $1.37 per
diluted share, as compared to $38.0 million, or $1.89
per diluted share, in fiscal 2021. Adjusted net income*
increased $8.3 million from pre-pandemic adjusted net
income* of $17.6 million, or $1.04 per diluted share, in
fiscal 2019.
Restaurant-level operating profit* was $76.7 million and
restaurant-level operating margin* was 18.2%,
compared to $93.1 million and 23.5%, respectively
in fiscal 2021. Restaurant-level operating profit*
increased $11.1 million from pre-pandemic
restaurant-level* operating profit of $65.6 million
in fiscal 2019 and restaurant-level operating margin*
increased by 280 basis points from pre-pandemic
restaurant-level operating margin* of 15.4% in
fiscal 2019.
*Adjusted net income, restaurant-level operating profit and restaurant-level operating
margin are non-GAAP measures. For reconciliations of adjusted net income,
restaurant-level operating profit 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.





 6/7/2023 Letter Continued (Full PDF)