Chuy's Holdings, Inc. (CHUY) | Investment Case

1. Company Snapshot

1.a. Company Description

Chuy's Holdings, Inc., through its subsidiaries, owns and operates full-service restaurants under the Chuy's name in the United States.As of December 26, 2021, it operated 96 restaurants in 17 states, including the Southeastern and Midwestern United States.The company was founded in 1982 and is headquartered in Austin, Texas.

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1.b. Last Insights on CHUY

Chuy's Holdings, Inc.'s recent performance was driven by a major deal with Darden Restaurants, Inc. The company announced that Darden Restaurants will acquire CHUY for $605 million in cash, which has sparked significant interest and scrutiny from investors and regulatory bodies. Several law firms have launched investigations into the fairness of the sale, citing concerns over the price and process. This development has likely dominated the company's recent news and attention, overshadowing any other factors that may have contributed to its performance.

1.c. Company Highlights

Last Price	37.48
Change Percentage	0.03%
Open	37.48
Previous Close	37.47
Market Cap ( Millions)	646
Volume	999863
Year High	39.41
Year Low	22.52
M A 50	37.24
M A 200	32.8

FCF Yield	3.17%
Dividend Yield	0.00%
ROE	12.75%
Debt / Equity	74.94%
Net Debt / EBIDTA	175.38%
Price To Book	2.67
Price Earnings Ratio	21.2
Price To FCF	31.55
Price To sales	1.4
EV / EBITDA	11.24

2. Transcript Summary

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3. NewsRoom

CHUY'S INVESTOR ALERT by the Former Attorney General of Louisiana: Kahn Swick & Foti, LLC Investigates Adequacy of Price and Process in Proposed Sale of Chuy's Holdings, Inc. - CHUY

Sep -26

Source: businesswire.com

"Very Bullish" on Chuy's (CHUY) Acquisition for Darden Restaurants (DRI)

Sep -18

Source: youtube.com

CHUY Stock Alert: Halper Sadeh LLC Is Investigating Whether the Sale of Chuy's Holdings, Inc. Is Fair to Shareholders

Sep -03

Source: businesswire.com

SHAREHOLDER ALERT: The M&A Class Action Firm Investigates Merger of Chuy's Holdings, Inc. - CHUY

Aug -22

Source: prnewswire.com

URGENT ALERT: The M&A Class Action Firm Investigates Merger of Chuy's Holdings, Inc. – CHUY

Aug -20

Source: globenewswire.com

Chuy's Holdings, Inc. Announces Record Date and Special Meeting of Stockholders

Aug -20

Source: globenewswire.com

CHUY STOCK ALERT: Halper Sadeh LLC Is Investigating Whether The Sale Of Chuy's Holdings, Inc. Is Fair To Shareholders

Jul -25

Source: accesswire.com

SHAREHOLDER INVESTIGATION: Halper Sadeh LLC Investigates BCSA, CHUY on Behalf of Shareholders

Jul -24

Source: prnewswire.com

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (4.50%)

6. Segments

Full-service, Casual Dining, Mexican Food Restaurants

Expected Growth: 4.5%

Growing demand for casual dining, increasing popularity of Tex-Mex cuisine, and Chuy's unique made-from-scratch offerings in a fun atmosphere drive growth in the full-service casual dining Mexican food segment.

7. Detailed Products

Chuy's Mexican Food

Casual dining restaurant chain serving Mexican-inspired food and drinks

On The Border Mexican Grill & Cantina

Casual dining restaurant chain serving Mexican-inspired food and drinks with a focus on border-style cuisine

8. Chuy's Holdings, Inc.'s Porter Forces

Forces Ranking

Threat Of Substitutes

Chuy's Holdings, Inc. faces moderate threat from substitutes due to the presence of alternative dining options, but the company's unique Tex-Mex menu and strong brand loyalty mitigate this threat.

Bargaining Power Of Customers

Chuy's Holdings, Inc. has a strong brand image and customer loyalty, which reduces the bargaining power of customers. Additionally, the company's menu pricing is competitive, making it difficult for customers to negotiate prices.

Bargaining Power Of Suppliers

Chuy's Holdings, Inc. faces moderate bargaining power from suppliers due to the concentration of suppliers in the food industry. However, the company's scale and long-term contracts with suppliers help mitigate this threat.

Threat Of New Entrants

Chuy's Holdings, Inc. operates in a highly competitive industry, but the company's strong brand image, established supply chain, and high barriers to entry make it difficult for new entrants to compete effectively.

Intensity Of Rivalry

Chuy's Holdings, Inc. operates in a highly competitive industry with many established players, leading to intense rivalry. The company must continuously innovate and differentiate itself to maintain market share.

9. SWOT Analysis

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

	Value
Debt Weight	42.84%
Debt Cost	3.95%
Equity Weight	57.16%
Equity Cost	12.34%
WACC	8.74%
Leverage	74.94%

11. Quality Control: Chuy's Holdings, Inc. passed 3 out of 9 key points

Strong Liquidity

Low Deb

Strong Interest Coverage

Healthy Cash Flow

Operating Inefficiency

Strong Return On Equity

Consistent Revenue Growth

Consistent Operating Cash Flow Growth

Margin Improvement

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

RAVE

A-Score: 5.3/10

Value: 5.0

Growth: 6.0

Quality: 8.8

Yield: 0.0

Momentum: 8.5

Volatility: 3.7

1-Year Total Return ->

Cannae Holdings

A-Score: 4.7/10

Value: 8.4

Growth: 1.6

Quality: 3.8

Yield: 3.0

Momentum: 4.0

Volatility: 7.7

1-Year Total Return ->

RCI Hospitality

A-Score: 4.3/10

Value: 7.6

Growth: 5.1

Quality: 5.2

Yield: 1.0

Momentum: 2.0

Volatility: 4.7

1-Year Total Return ->

First Watch

A-Score: 4.2/10

Value: 4.7

Growth: 8.2

Quality: 2.2

Yield: 0.0

Momentum: 6.0

Volatility: 4.3

1-Year Total Return ->

Chuy's

A-Score: 3.6/10

Value: 4.1

Growth: 6.8

Quality: 3.9

Yield: 0.0

Momentum: 5.0

Volatility: 2.0

1-Year Total Return ->

Denny's

A-Score: 3.5/10

Value: 8.5

Growth: 2.9

Quality: 4.3

Yield: 0.0

Momentum: 2.5

Volatility: 2.7

1-Year Total Return ->

Peers Metrics

12.e Scoring ^Insights

12.f DCF ^BETA

Parameters

Short Term Growth

18.15%

Short term Time

10.0

Long-Term Growth

2.00%

WACC

8.74%

Chuy's Holdings, Inc. - US1716041017

1. Company Snapshot

1.a. Company Description

1.b. Last Insights on CHUY

1.c. Company Highlights

Stable Momentum

Average Yield

Medium Volatility

Earnings Beats

Revenues Miss

Expensive

Weak Momentum

Earnings Miss

Average Growth

Strong Momentum

Fairly Valued

2. Transcript Summary

3. NewsRoom

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (4.50%)

6. Segments

Full-service, Casual Dining, Mexican Food Restaurants

Expected Growth: 4.5%

7. Detailed Products

Chuy's Mexican Food

On The Border Mexican Grill & Cantina

8. Chuy's Holdings, Inc.'s Porter Forces

Forces Ranking

Threat Of Substitutes

Bargaining Power Of Customers

Bargaining Power Of Suppliers

Threat Of New Entrants

Intensity Of Rivalry

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

11. Quality Control: Chuy's Holdings, Inc. passed 3 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

37.48$

Current Price

37.48$

Potential

-0.00%

Expected Cash-Flows

12.e Scoring ^Insights

12.f DCF ^BETA