chuy-20240630

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

__________________________________

FORM 10-Q

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☑			QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended June 30, 2024


☐			TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

Commission File No. 001-35603

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CHUY’S HOLDINGS, INC.

(Exact name of registrant as specified in its charter)

__________________________________


Delaware						20-5717694
(State of Incorporation or Organization)						(I.R.S. Employer Identification No.)

1623 Toomey Rd.

Austin, Texas 78704

(Address of Principal Executive Offices) (Zip Code)

Registrant’s Telephone Number, Including Area Code: (512) 473-2783

__________________________________

Securities registered pursuant to Section 12(b) of the Act:


Title of each class	Trading Symbol	Name of each exchange on which registered
Common Stock, par value $0.01 per share	CHUY	Nasdaq Stock Market LLC

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ☑ No ☐

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes ☑ No ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act:

Large accelerated filer

☑

Accelerated filer

☐

Emerging growth company

☐

Non-accelerated filer

☐

Smaller reporting company

☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ☐ No ☑

The number of shares of the registrant’s common stock outstanding at July 26, 2024 was 17,230,284.



Part I – Financial Information			3
Item 1. Financial Statements			3
Consolidated Balance Sheets			3
Unaudited Consolidated Income Statements			4
Unaudited Consolidated Statements of Stockholders' Equity			5
Unaudited Consolidated Statements of Cash Flows			6
Notes to Unaudited Consolidated Financial Statements			7
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations			16
Item 3. Quantitative and Qualitative Disclosures about Market Risk			17
Item 4. Controls and Procedures			17
Part II – Other Information			18
Item 1. Legal Proceedings			18
Item 1A. Risk Factors			18
Item 2. Unregistered Sales of Equity Securities and Use of Proceeds			19
Item 3. Defaults Upon Senior Securities			19
Item 4. Mine Safety Disclosures			19
Item 5. Other Information			20
Item 6. Exhibits			20


	June 30, 2024		December 31, 2023
Assets	(Unaudited)
Current assets:
Cash and cash equivalents	$	54,493	$	67,774
Accounts receivable	1,918		1,925
Lease incentives receivable	3,359		1,359
Inventories	1,787		1,805

Prepaid expenses and other current assets	9,179		7,507
Total current assets	70,736		80,370
Property and equipment, net	214,893		201,928
Operating lease assets	136,932		140,138
Deferred tax asset, net	3,376		3,415
Other assets and intangible assets, net	6,169		4,814

Tradename	21,900		21,900
Goodwill	24,069		24,069
Total assets	$	478,075	$	476,634
Liabilities and Stockholders' Equity
Current liabilities:
Accounts payable	$	5,804	$	5,561
Accrued liabilities	24,513		29,914
Operating lease liabilities	13,286		12,988
Income tax payable	442		303




Total current liabilities	44,045		48,766

Operating lease liabilities, less current portion	171,024		174,236
Other liabilities	5,266		3,785



Total liabilities	220,335		226,787

Contingencies
Stockholders’ equity:
Common stock, $0.01 par value; 60,000,000 shares authorized; 17,230,284 shares issued and outstanding at June 30, 2024 and 17,335,062 shares issued and outstanding at December 31, 2023	172		173
Preferred stock, $0.01 par value; 15,000,000 shares authorized and no shares issued or outstanding at June 30, 2024 and December 31, 2023	—		—
Paid-in capital	63,934		70,369
Retained earnings	193,634		179,305
Total stockholders’ equity	257,740		249,847
Total liabilities and stockholders’ equity	$	478,075	$	476,634


	Thirteen Weeks Ended				Twenty-Six Weeks Ended
	June 30, 2024		June 25, 2023		June 30, 2024		June 25, 2023
Revenue	$	119,798	$	119,001	$	230,262	$	231,499
Costs and expenses:
Cost of sales	30,719		29,432		58,540		58,150
Labor	35,996		35,159		70,651		69,261
Operating	19,306		18,896		37,388		36,974
Occupancy	7,568		8,116		15,235		15,998
General and administrative	7,234		7,698		14,368		15,504
Marketing	1,566		1,693		3,015		3,243
Restaurant pre-opening	548		613		1,202		1,094

Impairment, closed restaurant and other costs	2,686		482		3,124		853
Merger costs	651		—		651		—
Depreciation	5,494		5,222		10,934		10,362
Total costs and expenses	111,768		107,311		215,108		211,439
Income from operations	8,030		11,690		15,154		20,060
Interest income, net	(545)		(854)		(1,151)		(1,631)
Income before income taxes	8,575		12,544		16,305		21,691
Income tax expense	1,162		1,810		1,976		2,735
Net income	$	7,413	$	10,734	$	14,329	$	18,956
Net income per common share:
Basic	$	0.43	$	0.59	$	0.83	$	1.05
Diluted	$	0.43	$	0.59	$	0.83	$	1.04
Weighted-average shares outstanding:
Basic	17,230,189		18,080,327		17,267,885		18,050,381
Diluted	17,233,650		18,154,921		17,309,975		18,161,837


	Thirteen Weeks Ended
	Common Stock					Retained
	Shares	Amount		Paid-in Capital		Earnings		Total
Balance, March 31, 2024	17,230,087	$	172	$	62,788	$	186,221	$	249,181
Stock-based compensation	—	—		1,149		—		1,149

Settlement of restricted stock units	292	—		—		—		—

Indirect repurchase of shares for minimum tax withholdings	(95)	—		(3)		—		(3)
Net income	—	—		—		7,413		7,413
Balance, June 30, 2024	17,230,284	$	172	$	63,934	$	193,634	$	257,740

Balance, March 26, 2023	18,121,408	$	181	$	96,380	$	156,017	$	252,578
Stock-based compensation	—	—		1,062		—		1,062
Proceeds from exercise of stock options	73	—		3		—		3

Settlement of restricted stock units	826	—		—		—		—
Repurchase of shares of common stock	(83,521)	(1)		(2,960)		—		(2,961)
Indirect repurchase of shares for minimum tax withholdings	(232)	—		(9)		—		(9)
Net income	—	—		—		10,734		10,734
Balance, June 25, 2023	18,038,554	$	180	$	94,476	$	166,751	$	261,407

	Twenty-Six Weeks Ended
	Common Stock					Retained
	Shares	Amount		Paid-in Capital		Earnings		Total
Balance, December 31, 2023	17,335,062	$	173	$	70,369	$	179,305	$	249,847

Stock-based compensation	—	—		2,280		—		2,280

Settlement of restricted stock units	151,292	2		(2)		—		—
Repurchase of shares of common stock	(214,659)	(2)		(7,318)		—		(7,320)
Indirect repurchase of shares for minimum tax withholdings	(41,411)	(1)		(1,395)		—		(1,396)
Net income	—	—		—		14,329		14,329
Balance, June 30, 2024	17,230,284	$	172	$	63,934	$	193,634	$	257,740

Balance, December 25, 2022	17,998,170	$	180	$	96,586	$	147,795	$	244,561

Stock-based compensation	—	—		2,098		—		2,098
Proceeds from exercise of stock options	9,630	—		276		—		276

Settlement of restricted stock units	157,724	2		(2)		—		—
Repurchase of shares of common stock	(83,521)	(1)		(2,960)		—		(2,961)
Indirect repurchase of shares for minimum tax withholdings	(43,449)	(1)		(1,522)		—		(1,523)
Net income	—	—		—		18,956		18,956
Balance, June 25, 2023	18,038,554	$	180	$	94,476	$	166,751	$	261,407


	Shares	Weighted Average Fair Value		Weighted Average Remaining Contractual Term (Year)
Outstanding at December 31, 2023	353,334	$	31.97
Granted	158,141	33.81
Vested	(151,292)	27.54
Forfeited	(5,463)	34.21
Outstanding at June 30, 2024	354,720	$	34.65	2.84


	June 30, 2024		December 31, 2023
Accrued compensation and related benefits	$	9,656	$	13,965
Other accruals	6,438		6,324
Sales and use tax	3,290		3,791
Property tax	2,484		2,687
Deferred gift card revenue	2,645		3,147

Total accrued liabilities	$	24,513	$	29,914


	Thirteen Weeks Ended				Twenty-Six Weeks Ended
Lease cost	June 30, 2024		June 25, 2023		June 30, 2024		June 25, 2023
Operating lease cost	$	6,190	$	6,000	$	12,216	$	12,041
Variable lease cost	415		481		800		931
	$	6,605	$	6,481	$	13,016	$	12,972


Operating leases	Classification	June 30, 2024			December 31, 2023
Right-of-use assets	Operating lease assets	$	136,932		$	140,138

Deferred rent payments	Operating lease liability	7			6
Current lease liabilities	Operating lease liability	13,279			12,982
		13,286			12,988

Deferred rent payments	Operating lease liability, less current portion	58			61
Non-current lease liabilities	Operating lease liability, less current portion	170,966			174,175
		171,024			174,236

Total lease liabilities		$	184,310		$	187,224

Weighted average remaining lease term (in years)		11.9			12.0
Weighted average discount rate		7.9		%	7.8%


Fiscal year ending:
Remainder of 2024	$	13,453
2025	27,207
2026	26,720
2027	24,811
2028	24,407
Thereafter	165,660
Total minimum lease payments	282,258
Less: imputed interest	97,948
Present value of lease liabilities	$	184,310


	Thirteen Weeks Ended
	June 30, 2024		% of Revenue		June 25, 2023		% of Revenue		$ Change		% Change
Revenue	$	119,798	100.0	%	$	119,001	100.0	%	$	797	0.7	%
Costs and expenses:
Cost of sales	30,719		25.6		29,432		24.7		1,287		4.4
Labor	35,996		30.0		35,159		29.5		837		2.4
Operating	19,306		16.1		18,896		15.9		410		2.2
Occupancy	7,568		6.3		8,116		6.8		(548)		(6.8)
General and administrative	7,234		6.0		7,698		6.5		(464)		(6.0)
Marketing	1,566		1.4		1,693		1.5		(127)		(7.5)
Restaurant pre-opening	548		0.5		613		0.5		(65)		(10.6)

Impairment, closed restaurant and other costs	2,686		2.2		482		0.4		2,204		457.3
Merger costs	651		0.5		—		—		651		100.0
Depreciation	5,494		4.7		5,222		4.4		272		5.2
Total costs and expenses	111,768		93.3		107,311		90.2		4,457		4.2
Income from operations	8,030		6.7		11,690		9.8		(3,660)		(31.3)
Interest income, net	(545)		(0.5)		(854)		(0.7)		309		(36.2)
Income before income taxes	8,575		7.2		12,544		10.5		(3,969)		(31.6)
Income tax expense	1,162		1.0		1,810		1.5		(648)		(35.8)
Net income	$	7,413	6.2	%	$	10,734	9.0	%	$	(3,321)


	Thirteen Weeks Ended						Twenty-Six Weeks Ended
	June 30, 2024			June 25, 2023			June 30, 2024			June 25, 2023
Total open restaurants (at end of period)	101			99			101			99
Total comparable restaurants (at end of period)	93			94			93			94
Average unit volumes (in thousands)	$	1,185		$	1,201		$	2,293		$	2,347
Change in comparable restaurant sales(1)	(2.0		%)	3.2		%	(3.1		%)	5.5		%
Average check	$	19.68		$	19.23		$	19.54		$	19.02

SEC Form 10-Q filed by Chuy's Holdings Inc.