Q1 Earnings Outperformers: Chuy's (NASDAQ:CHUY) And The Rest Of The Sit-Down Dining Stocks

Let’s dig into the relative performance of Chuy's (NASDAQ:CHUY) and its peers as we unravel the now-completed Q1 sit-down dining earnings season.

Sit-down restaurants offer a complete dining experience with table service. These establishments span various cuisines and are renowned for their warm hospitality and welcoming ambiance, making them perfect for family gatherings, special occasions, or simply unwinding. Their extensive menus range from appetizers to indulgent desserts and wines and cocktails. This space is extremely fragmented and competition includes everything from publicly-traded companies owning multiple chains to single-location mom-and-pop restaurants.

The 14 sit-down dining stocks we track reported a mixed Q1. As a group, revenues were in line with analysts’ consensus estimates.

Valuation multiples for many growth stocks have not yet reverted to their early 2021 highs, but the market was optimistic at the end of 2023 due to cooling inflation. This year has been a different story as mixed inflation signals have led to market volatility. However, sit-down dining stocks have held steady amidst all this with share prices up 1.8% on average since the latest earnings results.

Chuy's (NASDAQ:CHUY)

Known for its ‘Big As Yo' Face’ burritos, Chuy’s (NASDAQ:CHUY) is a casual restaurant chain that specializes in Tex-Mex fare, which combines elements of traditional Mexican cuisine with Southern American cooking.

Chuy's reported revenues of $110.5 million, down 1.8% year on year. This print fell short of analysts’ expectations by 1.1%, but it was still a solid quarter for the company with an impressive beat of analysts’ gross margin estimates and a decent beat of analysts’ earnings estimates.

Steve Hislop, President and Chief Executive Officer of Chuy’s Holdings, Inc., stated, “In the first quarter, we experienced the same weather and macro challenges facing the broader restaurant industry leading to top-line growth that was below our expectations. That said, we were encouraged by the sequential monthly improvements in our underlying trends as we moved through the quarter, when adjusted for the Easter calendar shift. In addition, we continued to see growth in our off-premise business as consumers embrace the opportunity to enjoy Chuy’s high-quality, made-from-scratch food from the comfort of their own home. Finally, despite top-line headwinds, our team’s continued focus on four-wall operational excellence allowed us to deliver an 18.8% restaurant-level operating margin which remains among the best in our industry.”

Interestingly, the stock is up 24.9% since reporting and currently trades at $37.20.

Is now the time to buy Chuy's? Access our full analysis of the earnings results here, it’s free.

Best Q1: First Watch (NASDAQ:FWRG)

Based on a nautical reference to the first work shift aboard a ship, First Watch (NASDAQ:FWRG) is a chain of breakfast and brunch restaurants whose menu is heavily-focused on eggs and griddle items such as pancakes.

First Watch reported revenues of $258.6 million, up 19.5% year on year, in line with analysts’ expectations. It was a very strong quarter for the company with an impressive beat of analysts’ gross margin estimates and a decent beat of analysts’ earnings estimates.

The market seems happy with the results as the stock is up 23% since reporting. It currently trades at $17.55.

Is now the time to buy First Watch? Access our full analysis of the earnings results here, it’s free.

Weakest Q1: Bloomin' Brands (NASDAQ:BLMN)

Owner of the iconic Australian-themed Outback Steakhouse, Bloomin’ Brands (NASDAQ:BLMN) is a leading American restaurant company that owns and operates a portfolio of popular restaurant brands.

Bloomin' Brands reported revenues of $1.12 billion, down 2.9% year on year, in line with analysts’ expectations. It was a weak quarter for the company with underwhelming earnings guidance for the next quarter and a miss of analysts’ earnings estimates.

Bloomin' Brands had the slowest revenue growth in the group. The stock is flat since the results and currently trades at $18.23.

Read our full analysis of Bloomin' Brands’s results here.

BJ's (NASDAQ:BJRI)

Founded in 1978 in California, BJ’s Restaurants (NASDAQ:BJRI) is a chain of restaurants whose menu features classic American dishes, often with a twist.

BJ's reported revenues of $349.9 million, flat year on year, in line with analysts’ expectations. Revenue aside, it was a solid quarter for the company with an impressive beat of analysts’ earnings estimates.

The stock is down 12.2% since reporting and currently trades at $32.68.

Read our full, actionable report on BJ's here, it’s free.

Cracker Barrel (NASDAQ:CBRL)

Known for its country-themed food and merchandise, Cracker Barrel (NASDAQ:CBRL) is a beloved American restaurant and retail chain that celebrates the warmth and charm of Southern hospitality.

Cracker Barrel reported revenues of $817.1 million, down 1.9% year on year, in line with analysts’ expectations. More broadly, it was a very strong quarter for the company with an impressive beat of analysts’ gross margin estimates and a solid beat of analysts’ earnings estimates.

The stock is down 9.9% since reporting and currently trades at $40.83.

Read our full, actionable report on Cracker Barrel here, it’s free.

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