| Stock (Symbol) | Stock Price | |
Chuy’s (CHUY) |
$33 |
|
| Data is as of | Expected to Report | Sector |
August 19, 2015 |
Nov 2 – Nov 6 |
Retail & Travel |
| Sharek’s Take | ||
 Chuy’s (CHUY) might be back on the road again. The Mexican chain whipped the 25 cent profit estimate by 7 cents last qtr, and the stock broke out on high volume after it reported. Last qtr the company had 3% same store sales growth, a 19% increase in revenue and a 52% jump in profits as margins improved because food costs were lower and prices were higher. CHUY had 19% sales growth in 2014, but flat profit growth. Now if margins rebound profits could jump from $0.69 to maybe $1 this year (est is $0.86). This could be the beginning of a run for CHUY stock. Chuy’s had 60 restaurants at the end of 2014, and will build 10 or 11 this year, so it’s a small company with a ten gallon growth opportunity. The stock could go on a nice run for many years if it can keep this one qtr of momentum going. |
||
| One-Year Chart | ||
 Stock broke past $30 after the good earnings news. But qtrly profit growth has been erratic, as are Estimates for future qtrs. Est. LTG of 25% per year is solid, but the P/E of 38 is kinda high. I thought Estimates would be higher than they are. |
||
| Earnings Table | ||
 As mentioned earlier, profits jumped on 52% on just a 19% increase in sales.
CHUY beat the street by 7 cents, much better than the 3 cent beat 2QtrsAgo. |
||
| Fair Value | ||
 Surprisingly CHUY has had a median P/E between 36 and 48 each year its been public. That’s high considering profits have grown from just $0.60 to $0.69 in two years. Now with the operation operating more efficiently, 40 times earnings is fair. |
||
| Ten-Year Chart | ||
 I think its pretty clear CHUY should get back to $40-$42. We’ll see what happens. |
||
| Power Ranking | Bottom Line | |
Growth Portfolio
8 of 26 |
Chuy’s is a small Mexican chain with ten-gallon growth opportunity. The last report was applauded by investors, and this could be the beginning of a major move let’s see if CHUY can deliver solid results longer than just a qtr. But the stock’s not cheap at 38x earnings, and a poor report could cause the stock to fall. CHUY is ranked 8th in the 26 stock Growth Portfolio Power Rankings. It’s 7th of 13 stocks in the Aggressive Growth Portfolio Power Rankings. |
|
Aggressive Growth Portfolio
7 of 13 |
||
