Wednesday, April 8, 2015

Chuy's: Not As Bad As Perceived


Summary

  • Chuy's offers the unique opportunity for a fast-growing restaurant stock trading at multi-year lows.
  • The Tex-Mex concept remains relatively small with only 61 locations in 14 states.
  • The slowing unit development plan, along with a better real estate strategy, will help ramp up new locations faster and improve margins in 2016.
  • Chuy's stock isn't cheap, but it offers an attractive valuation with annual growth continuing at the nearly 20% clip.
With falling oil prices, most restaurant stocks got a boost in consumer spending and higher stock prices. One restaurant concept actually trading near multi-year lows is Chuy's Holdings (NASDAQ:CHUY). The concept has seen the stock hammered 50% after a very successful run after the IPO back in 2012.

Read the full article on Seeking Alpha.


Disclosure: No positions mentioned. Please review the disclaimer page for more details. 




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