Executive Summary

Q4 2023 delivered mixed but constructive results: revenue grew 11.8% to $116.3M on a 14-week quarter and modest comps (+0.3%), while restaurant-level operating margin expanded 300 bps to 20.0% on ~8% commodity deflation; GAAP EPS was $0.31 and adjusted EPS was $0.45 .
2024 guidance implies steady execution but a digestion year: adjusted EPS $1.82–$1.87 vs 2023 adjusted $1.97 (or ~$1.87 ex 53rd week), on 6–8 openings, G&A $30–$31M, tax rate ~13–14%, and ~17.4M diluted shares .
Estimate context: S&P Global consensus was unavailable via our data feed; third-party data indicate a clean EPS beat ($0.45 vs $0.38) and a slight revenue miss ($116.3M vs $116.6M). Use with caution for trading context .
Call tone emphasized margin durability (four-wall execution, low commodities) and measured unit growth; near-term headwinds include negative traffic, delivery-related costs, weather, and rising build costs compressing new-unit returns .

What Went Well and What Went Wrong

What Went Well

Margin expansion: restaurant-level operating margin rose to 20.0% (+300 bps YoY) on commodity deflation (~8%), pricing, and occupancy leverage; cost of sales down 240 bps YoY .
Strong adjusted profitability: adjusted net income rose to $7.9M ($0.45 diluted) vs $5.0M ($0.27) YoY; GAAP net income more than doubled to $5.5M ($0.31) .
Capital returns/clean balance sheet: $67.8M cash, no debt; repurchased ~$5.9M in Q4 and ~$28.9M in FY23; $21.1M authorization remaining .

Management quote: “Our effective four-wall execution resulted in a 200 basis-point expansion of restaurant-level margins to over 20%… among the best in the industry.” – CEO Steve Hislop .

What Went Wrong

Traffic softness: comps +0.3% on 13-week basis, driven by +3.4% average check offset by a 3.1% decline in average weekly customers .
Delivery/operating cost pressure: operating costs rose 10 bps YoY on higher delivery charges, R&M, and insurance; G&A delevered 70 bps (6.9% vs 6.2%) on bonuses, salaries, and IT .
Impairment/closures: Q4 included $3.1M of impairment/closed-restaurant and other costs ($0.14 per diluted share impact) .

Financial Results

Sequential trend (Q2 → Q3 → Q4 2023)

Metric	Q2 2023	Q3 2023	Q4 2023
Revenue ($USD Millions)	$119.001	$113.464	$116.347
Diluted EPS (GAAP)	$0.59	$0.39	$0.31
Adjusted Diluted EPS (Non-GAAP)	$0.61	$0.44	$0.45
Restaurant-Level Operating Margin %	21.6%	19.4%	20.0%
Income from Operations Margin %	9.8%	6.5%	5.4%
Comparable Restaurant Sales %	+3.2%	+2.0%	+0.3%
Off-Premise Mix % of Sales	~28%	~28%	~31%

YoY comparison (Q4 2022 → Q4 2023)

Metric	Q4 2022	Q4 2023
Revenue ($USD Millions)	$104.101	$116.347
Diluted EPS (GAAP)	$0.14	$0.31
Adjusted Diluted EPS (Non-GAAP)	$0.27	$0.45
Restaurant-Level Operating Margin %	17.0%	20.0%
Cost of Sales % of Revenue	27.5%	25.1%
G&A % of Revenue	6.2%	6.9%
Effective Tax Rate %	9.3%	21.0%

Notes:

Q4 2023 included an extra week (~$8.7M revenue). Comparable sales discussed on a 13 vs 13-week basis to normalize .
Non-GAAP reconciliations are provided in the press release; adjustments primarily add back impairment/closed-restaurant/other costs and related taxes .

Estimate comparison (reference only; S&P Global unavailable)

Metric	Cons. Estimate	Actual	Beat/Miss
Revenue ($USD Millions)	$116.63	$116.30	Miss ($0.33)
Adjusted EPS	$0.38	$0.45	Beat +$0.07

S&P Global consensus was unavailable via our tool; third-party data shown for directional context only .

KPIs and operating drivers

Traffic and pricing: +3.4% average check offset by –3.1% average weekly customers in Q4 (13-week comp basis) .
Off-premise/catering: off-premise mix ~31% in Q4 (vs ~29% prior-year); delivery increases drove higher delivery fees in operating costs . Selected call color: delivery ~12% of sales; catering ~4.8% in Q4; EasyCater rollout progressing (call) .
Commodity and labor: commodity deflation ~8% in Q4; labor inflation ~4% at comparable restaurants .

Guidance Changes

Metric	Period	Previous Guidance	Current Guidance	Change
Adjusted EPS (diluted)	FY 2024	n/a	$1.82–$1.87; vs FY23 adjusted $1.97 or $1.87 ex 53rd week	New frame; slightly below FY23 ex-53rd week
G&A Expense	FY 2024	n/a	$30–$31M	New
New Restaurant Openings	FY 2024	n/a	6–8	New
Net Capex	FY 2024	n/a	$41–$46M	New
Pre-opening Expense	FY 2024	n/a	$2.7–$3.2M	New
Effective Tax Rate	FY 2024	n/a	~13%–14%	New
Diluted Shares	FY 2024	n/a	~17.4M	New

Management noted the comparison to FY23 adjusted EPS both including and excluding the ~10c benefit from the 53rd week .

Earnings Call Themes & Trends

Topic	Previous Mentions (Q-2 and Q-1)	Current Period (Q4 2023)	Trend
Pricing/Avg Check	Q2: +5.8% avg check; Q3: +3.8% avg check	Q4: +3.4% avg check (13-week basis)	Moderating pricing tailwind
Traffic	Q2: –2.6% traffic; Q3: –1.8% traffic	Q4: –3.1% traffic (13-week basis)	Persistent traffic pressure
Commodities	Q2: ~4% deflation; Q3: ~5% deflation	Q4: ~8% deflation	Deflation accelerated in Q4
Off-Premise/Delivery	Q2: ~28%; Q3: ~28%	Q4: ~31%; delivery cost headwinds continue; call: delivery ~12%, catering ~4.8%	Mix gradually rising; cost pressure ongoing
Labor	Q2: ~5% hourly inflation; Q3: similar; improving staffing	Q4: ~4% hourly inflation; some staffing improvement	Inflation easing slightly
Development/Returns	Q2: 1 opening; pipeline intact	Q4: 1 opening (Terrell, TX); plan 6–8 in 2024 (core markets/high AUVs). Call: higher build costs (+35–40%) compress target cash-on-cash to ~25% vs 30%	Growth intact; returns moderated by build-cost inflation
Capital Returns	Q2/Q3: buybacks ($3.0M in Q2; $20.0M in Q3)	Q4: $5.9M buybacks; $28.9M FY23; $21.1M remaining	Ongoing repurchases
Tax	Q2: ~14.4%; Q3: ~14.7%	Q4: 21.0% (mix of credits/settlement impact)	Q4 elevated; guided 13–14% for 2024

Management Commentary

Strategic focus: “We will continue to… provide our customers with fresh, made-from-scratch food and drinks at an incredible value… [and] are excited by the opportunity to grow the Chuy’s brand and maximizing shareholder value in 2024 and beyond.” – CEO Steve Hislop .
Margin discipline: “Restaurant-level operating margin… increased 300 basis points to 20.0%…” .
2024 framework: “Adjusted net income per diluted share of $1.82 to $1.87… G&A of $30.0 to $31.0 million… six to eight new restaurants… tax rate ~13% to 14%” – Company outlook .

Q&A Highlights

Comp and traffic outlook: 2024 guidance embeds near-flat comps (–1% to +1%), negative traffic early in the year (weather headwinds), and normalization of delivery channel dynamics (e.g., Uber Eats rollover) .
Off-premise/catering mix: Delivery ~12% of sales; catering ~4.8% in Q4 with EasyCater rollout supporting growth; management sees a 24-month catering target around 4–5% .
Development returns: Build costs up ~35–40% are compressing initial targeted cash-on-cash returns to ~25% vs 30%; management will use sale-leasebacks and disciplined site selection to support returns .
Share count/tax: Diluted shares guided to ~17.4M; effective tax rate ~13–14% .

Estimates Context

S&P Global consensus estimates were unavailable via our tool at this time; therefore, we cannot present S&P-based consensus.
For directional context only (third-party): Q4 adjusted EPS $0.45 vs $0.38 consensus (beat); revenue $116.3M vs $116.6M consensus (slight miss) .
Implications: Street models may lift FY24 EPS for margin durability (commodity relief, four-wall execution) but temper revenue assumptions for traffic pressures and modest comp outlook .

Key Takeaways for Investors

Margin story remains intact: commodity deflation and pricing supported a 20% restaurant-level margin; watch if deflation persists and if delivery/R&M costs can be mitigated .
Top line is stable but not accelerating: comps near flat with negative traffic; 14th week boosted total revenue; focus shifts to marketing/menu innovation and catering to offset traffic pressure .
Capital allocation is shareholder-friendly: cash-rich, no debt, ongoing buybacks; monitor authorization pace vs. unit growth funding .
2024 is a digestion year: adjusted EPS guide bracketing FY23 ex-53rd week; execution on openings (6–8) and G&A control are key to hitting targets .
Development returns under scrutiny: higher build costs (35–40%) compress new-unit returns; disciplined site selection and sale-leasebacks are levers to protect IRRs .
Trading setup: EPS beat vs third-party consensus with slight revenue miss; narrative likely moves on traffic trajectory, off-premise mix profitability, and confirmation of commodity tailwinds through 1H24 .

Citations

Q4 2023 press release and 8-K (financials, guidance, non-GAAP reconciliations):
Q3 2023 press release:
Q2 2023 press release:
Third-party earnings/transcript references (consensus and call themes): MarketBeat/Quartr (consensus/beat-miss and call highlights) ; InsiderMonkey transcript excerpts .

Note: S&P Global consensus was unavailable via our data feed for CHUY at the time of analysis; third-party figures are included solely for directional context.

CHUY'S HOLDINGS, INC. (CHUY)·Q4 2023 Earnings Summary