Chuys Stock Breaks Above Horizontal Resistance: Q4 Results and Analyst Ratings

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In this article we look at Chuys stock breaking above horizontal resistanceA horizontal resistance chart pattern is a type of chart which shows how price movement follows a certain pattern when price reaches a certain level. The pattern forms a resistance... and the news catalystA stock catalyst is an engine that will drive your stock either up or down. A catalyst could be news of a new contract, SEC filings, earnings and revenue beats, merger and acquisit... that caused the break. Chuy’s Holdings, Inc., through its subsidiaries, owns and operates full-service restaurants under the Chuy’s name in the United States.

Chuys Stock

Chuys stock broke above horizontal resistance on February 17, 2023, after the company reported impressive EPS and revenueThe income statement provides a summary of a company's revenue and expenses over a specified period of time, typically a year or a quarter. It shows the company's total revenue, th... beats. The stock is in a technical strong uptrend.

Chuy stock forecast was raised at three analyst firms: Baird, Wedbush, and Stephens, in the wake of the company’s financial results which likely caused the horizontal breakout.

Chuy’s Q4 2022 Financial Results

On February 16, 2023, Chuy’s announced financial results for the fourth quarter and the fiscal year ended December 25, 2022. Chuy’s reported Q4 adjusted EPS of 27c versus the consensus estimate of 21c. The company reported Q4 revenue of $104.1M versus the consensus estimate of $102.82M.

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The company said, “Comparable restaurant sales increased 3.4% for the fourth quarter of 2022 compared to the same period last year primarily driven by a 6.1% increase in average check, partially offset by a 2.7% decrease in average weekly customers. Comparable restaurant sales increased 3.1% as compared to the same period in fiscal 2019.”

Steve Hislop, president and CEO of Chuy’s Holdings, Inc. stated, “Our top line momentum carried into the fourth quarter with solid comparable sales growth across all periods. Our first foray into limited-time offerings, through Chuy’s Knockouts, drove incremental traffic to the brand and provides us a strong foundation for continued innovation on the platform going forward. On profitability, we were able to maintain restaurant-level operating margin 270bps above pre-pandemic levels despite double-digit commodity inflation and high-single-digit labor inflation. Overall, these strong results wouldn’t be possible without our team members doing what we do best every day – providing our customers with the unique Chuy’s experience through high-quality, made-from-scratch food and drinks, offered at an affordable value.”

Chuys Stock Price Target Raised at Baird

David Tarantino, a Baird analyst, maintained a Neutral rating on Chuys stock and raised the price target to $34 from $28 on February 17, 2023. The analyst claimed that while we left with a continued favorable opinion of the company’s internal fundamentals, we still see some risks associated with the overall macro setup for the rest of 2023, so we are being cautious with our rating of CHUY at this time.

Chuys Stock Price Target Raised at Wedbush

Following the Q4 beat, Wedbush analyst Nick Setyan kept an Outperform rating on the shares of Chuy’s and increased its price target from $37 to $41 on February 17, 2023. Chuy’s has an appealing value proposition, according to the analyst, which puts it in a good position to weather any potential slowdown in consumer spending. According to the analyst’s research note to investors, the company’s January strength is the primary driver of upward sales revisions.

Chuys Stock Price Target Raised at Stephens

After the company reported stronger-than-expected sales, margins, and earnings in the fourth quarter, Stephens analyst Joshua Long increased Chuys stock price target from $33 to $37 on February 17, 2023, and maintained an Overweight rating on the stock. The company reiterates its confidence in the brand’s potential for longer-term unit development and notes that it was also heartened to learn that top-line momentum had so far accelerated in Q1.

Frequently Asked Questions

What company owns Chuy’s?

Chuy’s is owned by Chuy’s Holdings, Inc. The largest shareholders are Blackrock, T. Rowe Price, and Vanguard.

When did Chuy’s go public?

Chuy’s Holdings, Inc. went public on July 30th, 2012.

How has Chuy’s Holdings, Inc.’s stock performed for the past 5 years?

Chuy’s Holdings, Inc.’s stock has had mixed performance over the past 5 years. The company’s stock peaked at around $45 per share in June 2015, then dropped steadily until it bottomed out at around $12 per share in May 2016. Since then, the stock has been slowly climbing, and currently sits at around $37 per share.

Do any famous investors hold Chuys stock?

Yes, notable investors who own Chuys stock include Dimensional Fund Advisors, The Vanguard Group, and Blackrock.

Is a horizontal resistance breakout pattern considered bullish?

Yes, a horizontal resistance breakout pattern is considered bullish. This occurs when the price of a security moves above an established resistance level and is seen as a sign of increasing investor confidence and a potential uptrend.