Financial Data and Key Metrics Changes - Revenues for Q3 2022 increased by 4.7% to $106.7 million compared to $101.9 million in Q3 2021, primarily due to an additional 21 operating weeks from new restaurants [17] - Comparable restaurant sales increased by 2.6% year-over-year, driven by a 6.2% increase in average check, offset by a 3.6% decrease in average weekly customers [18] - Net income for Q3 2022 was $5 million or $0.27 per diluted share, down from $6 million or $0.30 per diluted share in the same period last year [24] Business Line Data and Key Metrics Changes - Off-premise sales accounted for approximately 26% of total revenue, consistent with Q3 2021 [17] - The company implemented a 3.5% price increase during the quarter, maintaining a strong value proposition [7] - Restaurant-level operating margin improved to 17.5%, representing a 300 basis point improvement over 2019 [7] Market Data and Key Metrics Changes - The company experienced commodity inflation of approximately 21% during Q3, with expectations for a decline to the high teens in Q4 [19][21] - Labor costs as a percentage of revenue increased to 30.4%, primarily due to a 10% hourly labor rate inflation [21] Company Strategy and Development Direction - The company plans to open two new restaurants in Q4 2022, totaling three new openings for fiscal 2022, with a forecast of six to nine new restaurants for fiscal 2023 [14][27] - A new $50 million share repurchase program was announced, reflecting the company's strong financial position and commitment to long-term shareholder value [16][26] Management's Comments on Operating Environment and Future Outlook - Management noted that staffing improvements have positively impacted sales momentum, with continued positive trends into Q4 [6][31] - The company is cautious about inflationary pressures for 2023, with expectations for labor and commodity inflation remaining elevated [33][79] Other Important Information - The company has made progress in hiring and staffing, with a focus on retention and improved team member experience [8][58] - Digital marketing efforts have been ramped up, including partnerships with social media platforms and promotional campaigns [12] Q&A Session Summary Question: Recent sales trends and key drivers - Management noted that sales improved from flat in July to 3.5% in August and 3.9% in September, driven by staffing improvements and social media engagement [30][31] Question: Inflation outlook for 2023 - Management indicated that achieving previous margin targets may be challenging due to ongoing inflation, with estimates of 5-6% labor inflation and 8-9% commodity inflation [33] Question: Development plans for 2023 - Management expressed confidence in opening six to nine new units, focusing on established markets with proven demand [36][38] Question: Effectiveness of digital marketing - Management stated that digital marketing efforts are aimed at increasing brand awareness, with results still being evaluated [45] Question: Catering and off-premise sales trends - Catering sales have increased to 2.6% of total sales, with off-premise sales remaining stable at around 26% [70][76]

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 __________________________________ FORM 10-Q __________________________________ ☑ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended September 25, 2022 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 Commission File No. 001-35603 __________________________________ CHUY'S HOLDINGS, INC. (Exact name of regist ...

ChuyÂ's Holdings, Inc. (NASDAQ:CHUY) Q2 2022 Earnings Conference Call August 4, 2022 5:00 PM ET Company Participants Jon Howie – Vice President and Chief Financial Officer Steve Hislop – President and Chief Executive Officer Conference Call Participants Mary Hodes – Baird Chris O'Cull – Stifel Brian Vaccaro – Raymond James Andrew Strelzik – BMO Capital Markets Nick Setyan – Wedbush Securities Andy Barish – Jefferies Todd Brooks – The Benchmark Company Operator Good day, everyone, and welcome to the ChuyÂ's ...

Part I—Financial Information [Financial Statements](index=4&type=section&id=Item%201.%20Financial%20Statements) The financial statements for the period ended June 26, 2022, reflect a slight decrease in total assets and stockholders' equity, with revenue growth offset by declining net income and operating cash flow due to rising costs and share repurchases [Unaudited Condensed Consolidated Balance Sheets](index=4&type=section&id=Unaudited%20Condensed%20Consolidated%20Balance%20Sheets) As of June 26, 2022, total assets decreased slightly to $488.6 million, driven by reduced cash, while stockholders' equity declined to $255.8 million due to share repurchases Condensed Consolidated Balance Sheet Data (in thousands) | Account | June 26, 2022 (in thousands) | December 26, 2021 (in thousands) | | :--- | :--- | :--- | | **Assets** | | | | Cash and cash equivalents | $96,258 | $106,621 | | Total current assets | $107,007 | $114,464 | | Property and equipment, net | $180,467 | $179,369 | | Total assets | $488,616 | $495,324 | | **Liabilities & Equity** | | | | Total current liabilities | $43,232 | $42,372 | | Total liabilities | $232,866 | $232,530 | | Total stockholders' equity | $255,750 | $262,794 | | Total liabilities and stockholders' equity | $488,616 | $495,324 | [Unaudited Condensed Consolidated Income Statements](index=5&type=section&id=Unaudited%20Condensed%20Consolidated%20Income%20Statements) For the thirteen and twenty-six weeks ended June 26, 2022, revenue increased, but net income declined significantly due to rising cost of sales, labor, and operating expenses Income Statement Highlights (in thousands) | Metric | Thirteen Weeks Ended June 26, 2022 (in thousands) | Thirteen Weeks Ended June 27, 2021 (in thousands) | Twenty-Six Weeks Ended June 26, 2022 (in thousands) | Twenty-Six Weeks Ended June 27, 2021 (in thousands) | | :--- | :--- | :--- | :--- | :--- | | Revenue | $110,946 | $108,153 | $211,432 | $195,863 | | Income from operations | $8,591 | $13,857 | $14,674 | $19,817 | | Net income | $7,871 | $11,530 | $13,389 | $18,184 | Net Income Per Share (Diluted) | Period | 2022 (per share) | 2021 (per share) | | :--- | :--- | :--- | | Thirteen Weeks Ended | $0.41 | $0.57 | | Twenty-Six Weeks Ended | $0.70 | $0.90 | [Unaudited Condensed Consolidated Statements of Stockholders' Equity](index=7&type=section&id=Unaudited%20Condensed%20Consolidated%20Statements%20of%20Stockholders%27%20Equity) Stockholders' equity decreased to $255.8 million as of June 26, 2022, primarily due to **$21.1 million** in common stock repurchases offsetting **$13.4 million** in net income - For the twenty-six weeks ended June 26, 2022, key changes to stockholders' equity included net income of **$13.4 million** and common stock repurchases of approximately **$21.1 million**[14](index=14&type=chunk) [Unaudited Condensed Consolidated Statements of Cash Flows](index=9&type=section&id=Unaudited%20Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) For the first twenty-six weeks of 2022, operating cash flow decreased to $22.3 million, investing cash outflow increased, and financing activities used $22.5 million, resulting in a $10.4 million net decrease in cash Summary of Cash Flows (in thousands) | Activity | Twenty-Six Weeks Ended June 26, 2022 (in thousands) | Twenty-Six Weeks Ended June 27, 2021 (in thousands) | | :--- | :--- | :--- | | Net cash provided by operating activities | $22,267 | $32,082 | | Net cash used in investing activities | ($10,142) | ($6,582) | | Net cash (used in) provided by financing activities | ($22,488) | $1,230 | | **Net (decrease) increase in cash** | **($10,363)** | **$26,730** | [Notes to Unaudited Condensed Consolidated Financial Statements](index=10&type=section&id=Notes%20to%20Unaudited%20Condensed%20Consolidated%20Financial%20Statements) Notes detail operations, a **$50.0 million** share repurchase program with **$20.6 million** remaining, a **$35.0 million** undrawn credit facility, and an ongoing IRS audit with a potential **$0.5-$2.5 million** tax liability - As of June 26, 2022, the Company operated **97 restaurants** across **17 states**[21](index=21&type=chunk) - The company has a **$50.0 million** share repurchase program, effective until December 31, 2023, with **$20.6 million** remaining available for repurchases as of June 26, 2022[30](index=30&type=chunk) - The company has a secured **$35.0 million** revolving credit facility maturing in July 2024, with no borrowings under this facility as of June 26, 2022[28](index=28&type=chunk) - The IRS is auditing the company's 2016 tax return regarding tenant allowances, with a potential tax liability of **$0.5 million to $2.5 million**, though the company believes its position will be sustained[38](index=38&type=chunk) [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=17&type=section&id=Item%202.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Q2 2022 revenue grew **2.6%** due to new restaurants and **1.7%** comparable sales, but profitability declined **31.7%** from **24%** commodity and **11%** labor inflation, despite strong liquidity and **$21.1 million** in share repurchases [Performance Indicators](index=17&type=section&id=Performance%20Indicators) As of Q2 2022, the company operated **97 restaurants**, with comparable restaurant sales increasing **1.7%** for the thirteen weeks ended June 26, 2022, driven by a higher average check Key Operating Data | Metric | Thirteen Weeks Ended June 26, 2022 | Thirteen Weeks Ended June 27, 2021 | Twenty-Six Weeks Ended June 26, 2022 | Twenty-Six Weeks Ended June 27, 2021 | | :--- | :--- | :--- | :--- | :--- | | Total open restaurants | 97 | 95 | 97 | 95 | | Change in comparable restaurant sales | 1.7% | 60.0% | 6.1% | 23.6% | | Average check | $18.15 | $17.53 | $17.94 | $17.36 | [Results of Operations](index=18&type=section&id=Results%20of%20Operations) Q2 2022 revenue grew **2.6%** to **$110.9 million**, but net income fell **31.7%** to **$7.9 million** due to significant cost inflation, with similar trends observed for the first half of 2022 - In Q2 2022, comparable restaurant sales increased **1.7%**, driven by a **3.4%** increase in average check, offset by a **1.7%** decrease in average weekly customers[52](index=52&type=chunk) - Significant cost pressures in Q2 2022 included approximately **24%** commodity inflation and **11%** hourly labor rate inflation at comparable restaurants[52](index=52&type=chunk) - For the first half of 2022, comparable restaurant sales increased **6.1%**, driven by a **2.7%** increase in average weekly customers and a **3.4%** increase in average check[55](index=55&type=chunk) [Liquidity and Capital Resources](index=22&type=section&id=Liquidity%20and%20Capital%20Resources) As of June 26, 2022, the company maintained strong liquidity with **$96.3 million** in cash and no debt, utilizing its **$35.0 million** credit facility and repurchasing **$21.1 million** in shares - As of June 26, 2022, the Company had **$96.3 million** in cash and cash equivalents, no debt, and **$35.0 million** of availability under its revolving credit facility[58](index=58&type=chunk) - The company repurchased **776,812 shares** for approximately **$21.1 million** during the twenty-six weeks ended June 26, 2022[58](index=58&type=chunk) [Quantitative and Qualitative Disclosures about Market Risk](index=24&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20about%20Market%20Risk) No material changes to market risk disclosures were reported since the last Annual Report on Form 10-K - There have been no material changes to the company's market risk disclosures since the last Annual Report[67](index=67&type=chunk) [Controls and Procedures](index=24&type=section&id=Item%204.%20Controls%20and%20Procedures) Management concluded disclosure controls and procedures were effective as of June 26, 2022, with no material changes to internal control over financial reporting during the quarter - The principal executive officer and principal financial officer concluded that the company's disclosure controls and procedures were effective as of the end of the period[68](index=68&type=chunk) - There were no material changes in internal control over financial reporting during the quarter ended June 26, 2022[69](index=69&type=chunk) Part II – Other Information [Legal Proceedings](index=26&type=section&id=Item%201.%20Legal%20Proceedings) No legal proceedings were reported during the period - None[72](index=72&type=chunk) [Risk Factors](index=26&type=section&id=Item%201A.%20Risk%20Factors) No material changes to risk factors were reported from those previously disclosed in the Annual Report - No material changes from the risk factors disclosed in the Annual Report[73](index=73&type=chunk) [Unregistered Sales of Equity Securities and Use of Proceeds](index=26&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) During the thirteen weeks ended June 26, 2022, the company repurchased **58,700 shares** for **$22.71** per share, with **$20.6 million** remaining in the **$50.0 million** program Share Repurchases (Thirteen Weeks Ended June 26, 2022) | Period | Total Shares Purchased | Average Price Paid Per Share | | :--- | :--- | :--- | | May 23, 2022 - June 26, 2022 | 58,700 | $22.71 | | **Total** | **58,700** | **$22.71** | - The share repurchase program, which expires on December 31, 2023, had approximately **$20.6 million** remaining available for future purchases as of June 26, 2022[73](index=73&type=chunk) [Defaults Upon Senior Securities](index=26&type=section&id=Item%203.%20Defaults%20Upon%20Senior%20Securities) No defaults upon senior securities were reported - None[73](index=73&type=chunk) [Mine Safety Disclosures](index=26&type=section&id=Item%204.%20Mine%20Safety%20Disclosures) Not applicable - None[73](index=73&type=chunk) [Other Information](index=26&type=section&id=Item%205.%20Other%20Information) No other information was reported - None[73](index=73&type=chunk) [Exhibits](index=26&type=section&id=Item%206.%20Exhibits) Exhibits filed include CEO and CFO certifications under Sarbanes-Oxley Act and Inline XBRL data files

ChuyÂ's Holdings, Inc. (NASDAQ:CHUY) Q1 2022 Earnings Conference Call May 5, 2022 5:00 PM ET Company Participants Steve Hislop - President and Chief Executive Officer Jon Howie - Vice President and Chief Financial Officer Conference Call Participants Mary Hodes - Baird Daniel Gold - BMO Capital Markets Paul Hao - Wedbush Securities Todd Brooks - The Benchmark Company Operator Good day, everyone, and welcome to the ChuyÂ's Holdings Inc.Â's First Quarter 2022 Earnings Conference Call. TodayÂ's call is being r ...

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 __________________________________ FORM 10-Q __________________________________ ☑ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended March 27, 2022 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 Commission File No. 001-35603 __________________________________ CHUY'S HOLDINGS, INC. (Exact name of registrant ...

PART I [Business](index=6&type=section&id=Item%201.%20Business) Chuy's Holdings operates 96 Tex-Mex restaurants across 17 states, focusing on authentic cuisine, unique atmosphere, and value - Company Overview (as of Dec 26, 2021) | Metric | Value | | :--- | :--- | | Number of Restaurants | 96 | | States of Operation | 17 | | Average Annual Unit Volume (Comparable) | $4.2 million | | Average Check | $17.30 | | Alcoholic Beverage Sales % of Total | ~16% | - The company's brand motto is "If you've seen one Chuy's, you've seen one Chuy's!", reflecting a strategy of unique, eclectic decor for each location to create an "unchained" look and feel[12](index=12&type=chunk)[15](index=15&type=chunk) - In response to the COVID-19 pandemic, the company developed a new operating model to handle increased off-premise business, right-sized its labor model, and maximized profitability at reduced sales volumes As of year-end 2021, all restaurants were operating without capacity restrictions[12](index=12&type=chunk)[14](index=14&type=chunk) - The company plans to open **five to eight new restaurants** in existing markets during 2022[18](index=18&type=chunk) [Our Business Strengths and Strategies](index=7&type=section&id=Item%201.%20Business-Our%20Business%20Strengths%20and%20Strategies) This section details the company's core competitive advantages and strategic initiatives for growth and operational efficiency - Core business strengths include: - **Authentic Cuisine**: Use of fresh, made-from-scratch ingredients and recipes from founders' families - **Value Proposition**: Generous portions with an average check of **$17.30**, appealing to a broad demographic - **Unique Atmosphere**: Eclectic, irreverent decor with signature elements like hand-carved wooden fish and vintage hubcaps - **Strong Company Culture**: Emphasis on fun, community involvement, and employee training, leading to favorable turnover rates - **Flexible Business Model**: High average unit volumes (**$4.2 million** for comparable stores) and a flexible real estate strategy using both conversions and new builds[15](index=15&type=chunk)[17](index=17&type=chunk) - Key business strategies are: - **New Restaurant Development**: Focus on expanding in major markets and backfilling existing ones - **Comparable Sales Growth**: Drive traffic by consistently providing high-quality food, service, and value - **Infrastructure Leverage**: Utilize existing corporate infrastructure to support growth efficiently, expecting G&A costs to grow slower than revenue[18](index=18&type=chunk) [Real Estate and Site Selection](index=8&type=section&id=Item%201.%20Business-Real%20Estate%20and%20Site%20Selection) This section describes the company's approach to restaurant location, property leasing, and investment in new sites - As of year-end 2021, the company leased **106 locations** (**91 free-standing**, **15 end-cap/in-line**) and owned **two properties** Leases are typically long-term (**10-15 years initial**) with extension options[19](index=19&type=chunk) - The site selection process targets high-traffic locations with a strong concentration of the core demographic (**ages 21-44**, median income **>$60,000**) The company uses a flexible model, pursuing both conversions of existing sites and ground-up prototypes[22](index=22&type=chunk) - For 2022, the estimated cash investment for a new restaurant is **$3.0 million to $4.0 million** The process from site identification to opening takes approximately **14 to 18 months**[23](index=23&type=chunk) [Operations and Marketing](index=9&type=section&id=Item%201.%20Business-Operations%20and%20Marketing) This section covers the company's supply chain, marketing strategies, and expansion of off-premise dining options - The company relies on a primary national distributor, **Performance Food Group (PFG)**, for most supplies, with specialized suppliers for items like chicken and Hatch green chiles[26](index=26&type=chunk)[28](index=28&type=chunk) - Marketing strategy combines national digital initiatives (paid search, social media, influencers) with local store marketing focused on community relationships and charity events[30](index=30&type=chunk)[31](index=31&type=chunk)[32](index=32&type=chunk) - Off-premise initiatives have been expanded through online ordering platforms and partnerships with third-party delivery services, with **DoorDash** as the preferred national partner[33](index=33&type=chunk)[34](index=34&type=chunk) [Human Capital Management](index=12&type=section&id=Item%201.%20Business-Human%20Capital%20Management) This section details the company's employee base, turnover rates, and investment in training and culture - As of December 26, 2021, the company had approximately **6,700 employees**, none of whom are unionized[42](index=42&type=chunk) - The company reports favorable employee turnover rates, which it attributes to its strong culture and investment in training As of year-end 2021, annual turnover was approximately **25% for store managers** and **94% for hourly employees**[42](index=42&type=chunk) - Significant resources are devoted to employee training, including multi-month programs for managers and "Culture Clubs" that impart the company's history and values[42](index=42&type=chunk) [Risk Factors](index=13&type=section&id=Item%201A.%20Risk%20Factors) The company faces significant risks across operations, labor, regulatory compliance, financial stability, and market factors - The **COVID-19 pandemic** is cited as a primary risk, having previously harmed the business through closures and restrictions, and potentially continuing to do so through new variants, supply chain disruptions, and changes in consumer behavior[47](index=47&type=chunk) - A significant geographic concentration risk exists, with approximately **41% of restaurants** located in **Texas**, making the company susceptible to economic, weather, and other trends in that state[59](index=59&type=chunk) - The company is exposed to risks from changes in **food availability and costs**, particularly for volatile commodities like **produce, beef, chicken, and cheese**, and **does not currently use financial instruments to hedge this risk**[63](index=63&type=chunk)[65](index=65&type=chunk) - **Labor shortages** and **rising labor costs**, driven by **minimum wage increases** and a competitive hiring market, are identified as significant risks that could harm business operations and growth[78](index=78&type=chunk)[79](index=79&type=chunk) [Properties](index=29&type=section&id=Item%202.%20Properties) Chuy's operates 96 restaurants across 17 states, primarily leasing locations under long-term agreements, with a significant concentration in Texas - Restaurant Locations by State (Top 5) | State | Number of Restaurants | | :--- | :--- | | Texas | 39 | | Florida | 8 | | Tennessee | 7 | | Ohio | 6 | | Virginia | 6 | - The company generally leases all land, parking, and buildings for its restaurants Most leases include a base rent plus a contingent rent based on a percentage of gross sales above a certain threshold[104](index=104&type=chunk) [Legal Proceedings](index=29&type=section&id=Item%203.%20Legal%20Proceedings) The company is involved in routine legal actions, which management believes will not materially impact its financial position or results - Information regarding legal proceedings is referenced in **Note 13** to the Consolidated Financial Statements[105](index=105&type=chunk) PART II [Market for Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities](index=30&type=section&id=Item%205.%20Market%20for%20Registrant%27s%20Common%20Equity%2C%20Related%20Stockholder%20Matters%20and%20Issuer%20Purchases%20of%20Equity%20Securities) Chuy's common stock trades on Nasdaq, with the company prioritizing earnings retention for growth and share repurchases over cash dividends - The company **does not currently pay dividends** and expects to retain future earnings for business operations, growth, and share repurchases[109](index=109&type=chunk) - Share Repurchase Activity (Q4 2021) | Period | Total Shares Purchased | Average Price Paid | | :--- | :--- | :--- | | Sep 27 - Oct 24, 2021 | — | $— | | Oct 25 - Nov 21, 2021 | 134,751 | $32.64 | | Nov 22 - Dec 26, 2021 | 130,181 | $30.75 | | **Total Q4 2021** | **264,932** | **$31.71** | - On November 4, 2021, the board approved a new share repurchase program authorizing up to **$50.0 million** in repurchases, effective October 28, 2021, and expiring **December 31, 2023** As of December 26, 2021, **$41.6 million** remained available under this program[110](index=110&type=chunk) [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=32&type=section&id=Item%207.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses the company's strong 2021 recovery, marked by significant revenue and net income growth and robust liquidity - Key Performance Indicators | Metric | FY 2021 | FY 2020 | FY 2019 | | :--- | :--- | :--- | :--- | | Total Restaurants (EOP) | 96 | 92 | 100 | | Comparable Restaurants (EOP) | 92 | 86 | 88 | | Average Unit Volumes (thousands) | $4,197 | $3,477 | $4,318 | | Change in Comparable Sales | 22.1% | (22.1)% | 2.6% | | Average Check | $17.30 | $16.93 | $15.74 | - The company's growth strategy focuses on opening **5 to 8 new restaurants** in fiscal 2022, primarily by developing additional locations in existing major markets and backfilling smaller ones to build brand awareness[118](index=118&type=chunk)[120](index=120&type=chunk) - As of December 26, 2021, the company had a strong financial position with **$106.6 million in cash and cash equivalents**, **no debt**, and **$35.0 million of availability** under its revolving credit facility[140](index=140&type=chunk) [Results of Operations](index=35&type=section&id=Item%207.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations-Results%20of%20Operations) This section details the company's financial performance, including revenue, cost of sales, labor costs, and net income for the fiscal year - Consolidated Statement of Operations Highlights (FY 2021 vs. FY 2020) | Metric (in thousands) | FY 2021 | FY 2020 | Change | % Change | | :--- | :--- | :--- | :--- | :--- | | Revenue | $396,467 | $320,952 | $75,515 | 23.5% | | Cost of Sales (% of Revenue) | 24.3% | 24.6% | - | - | | Labor Costs (% of Revenue) | 28.7% | 30.6% | - | - | | Income (Loss) from Operations | $34,402 | $(8,544) | $42,946 | * | | Net Income (Loss) | $30,176 | $(3,294) | $33,470 | * | - The **23.5% revenue increase** in 2021 was driven by growth in customer traffic as indoor dining capacity restrictions were relaxed Comparable restaurant sales increased **22.1%** due to a **19.4% increase in weekly customers** and a **2.7% increase in average check**[129](index=129&type=chunk) - Labor costs as a percentage of revenue decreased from **30.6% in 2020 to 28.7% in 2021**, primarily due to sales leverage on management labor, despite hourly labor rate inflation of approximately **4.6%**[129](index=129&type=chunk)[131](index=131&type=chunk) - Impairment, closed restaurant and other costs decreased significantly to **$10.2 million** in 2021 from **$26.8 million** in 2020 The 2021 costs included a **$2.4 million loss on lease terminations** and a **$2.7 million non-cash impairment charge**[131](index=131&type=chunk) [Liquidity and Capital Resources](index=38&type=section&id=Item%207.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations-Liquidity%20and%20Capital%20Resources) This section analyzes the company's cash flow, capital expenditures, and credit facility, highlighting its financial flexibility - Cash Flow Summary (in thousands) | Cash Flow Activity | FY 2021 | FY 2020 | FY 2019 | | :--- | :--- | :--- | :--- | | Net cash provided by operating activities | $49,780 | $42,714 | $43,431 | | Net cash used in investing activities | $(16,413) | $(12,149) | $(33,274) | | Net cash (used in) provided by financing activities | $(13,563) | $46,178 | $(8,282) | - For 2022, the company estimates capital expenditures between **$25.0 million and $40.0 million**, which includes opening **5 to 8 new restaurants** and **$8.0 million for maintenance and remodels**[142](index=142&type=chunk) - In July 2021, the company entered into a new secured **$35.0 million revolving credit facility** maturing in **July 2024** As of year-end 2021, there were **no borrowings** under this facility[144](index=144&type=chunk)[146](index=146&type=chunk) [Quantitative and Qualitative Disclosures About Market Risk](index=43&type=section&id=Item%207A.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) The company's primary market risks are unhedged interest rate fluctuations on its credit facility and commodity price volatility for key food products - The principal interest rate exposure relates to the variable-rate Revolving Credit Facility As of December 26, 2021, there were **no borrowings outstanding**[156](index=156&type=chunk) - The company is exposed to market price fluctuations in food products, particularly produce, chicken, beef, and cheese It **does not currently use financial instruments to hedge this commodity price risk**[157](index=157&type=chunk) [Financial Statements and Supplementary Data](index=43&type=section&id=Item%208.%20Financial%20Statements%20and%20Supplementary%20Data) This section presents the company's audited consolidated financial statements, including balance sheets, income statements, and cash flows - The independent registered public accounting firm, **RSM US LLP**, issued an **unqualified opinion** on the consolidated financial statements and on the effectiveness of the company's internal control over financial reporting[190](index=190&type=chunk)[191](index=191&type=chunk) [Consolidated Balance Sheets](index=52&type=section&id=Item%208.%20Financial%20Statements%20and%20Supplementary%20Data-Consolidated%20Balance%20Sheets) This section provides a snapshot of the company's assets, liabilities, and equity at specific fiscal year-ends - Consolidated Balance Sheet Highlights (in thousands) | Account | Dec 26, 2021 | Dec 27, 2020 | | :--- | :--- | :--- | | **Assets** | | | | Cash and cash equivalents | $106,621 | $86,817 | | Total current assets | $114,464 | $94,561 | | Property and equipment, net | $179,369 | $185,105 | | Total assets | $495,324 | $493,675 | | **Liabilities & Equity** | | | | Total current liabilities | $42,372 | $43,318 | | Operating lease liabilities, non-current | $188,735 | $207,601 | | Total liabilities | $232,530 | $251,817 | | Total stockholders' equity | $262,794 | $241,858 | [Consolidated Statements of Income](index=53&type=section&id=Item%208.%20Financial%20Statements%20and%20Supplementary%20Data-Consolidated%20Statements%20of%20Income) This section details the company's revenues, expenses, and net income (loss) over the reported fiscal periods - Consolidated Income Statement Summary (in thousands) | Metric | FY 2021 | FY 2020 | FY 2019 | | :--- | :--- | :--- | :--- | | Revenue | $396,467 | $320,952 | $426,357 | | Income (loss) from operations | $34,402 | $(8,544) | $3,436 | | Net income (loss) | $30,176 | $(3,294) | $6,215 | | Diluted EPS | $1.50 | $(0.18) | $0.37 | [Notes to Consolidated Financial Statements](index=56&type=section&id=Item%208.%20Financial%20Statements%20and%20Supplementary%20Data-Notes%20to%20Consolidated%20Financial%20Statements) This section provides detailed explanations and additional information supporting the consolidated financial statements - In Q2 2020, the company issued **3,041,256 shares of common stock** in an At-The-Market (ATM) offering, receiving net proceeds of **$48.2 million**, which was used to repay debt and for general corporate purposes[240](index=240&type=chunk) - Impairment, Closed Restaurant and Other Costs (in thousands) | Cost Category | FY 2021 | FY 2020 | FY 2019 | | :--- | :--- | :--- | :--- | | Total impairment charge | $2,689 | $20,850 | $12,692 | | Closed restaurant costs | $5,092 | $5,099 | $1,487 | | Loss on lease termination | $2,401 | $— | $— | | COVID-19 related charges | $— | $845 | $— | | **Total** | **$10,182** | **$26,794** | **$14,179** | - The IRS audited the company's 2016 tax return and proposed an adjustment related to tenant allowances The company disagrees with the IRS's position and estimates a potential tax liability of **$0.5 million to $2.5 million** if the position were upheld, but has not recognized a liability as it believes its position is more likely than not to be sustained[257](index=257&type=chunk) [Controls and Procedures](index=43&type=section&id=Item%209A.%20Controls%20and%20Procedures) Management and the independent auditor concluded that the company's disclosure and internal controls were effective - The CEO and CFO concluded that the company's disclosure controls and procedures were **effective** as of the end of the fiscal year (December 26, 2021)[158](index=158&type=chunk) - Management concluded that the company's internal control over financial reporting was **effective** as of December 26, 2021 The independent registered public accounting firm, **RSM US LLP**, also issued an attestation report concurring with management's assessment[160](index=160&type=chunk)[165](index=165&type=chunk) PART III [Directors, Executive Officers, Corporate Governance, Executive Compensation, Security Ownership, and Certain Relationships](index=46&type=section&id=Items%2010-14) Information for directors, executive officers, corporate governance, compensation, and security ownership will be provided in a future amendment - Information for Items 10, 11, 12, 13, and 14 is not included in this report and will be provided in a **future amendment**[170](index=170&type=chunk) PART IV [Exhibits and Financial Statement Schedules](index=46&type=section&id=Item%2015.%20Exhibits%20and%20Financial%20Statement%20Schedules) This section provides an index of all exhibits filed with the Form 10-K, including corporate governance documents and material contracts - This section provides an index of all exhibits filed with or incorporated by reference into the Form 10-K, including corporate governance documents, material contracts, and certifications[172](index=172&type=chunk)[175](index=175&type=chunk)

Financial Data and Key Metrics Changes - Revenues for Q4 2021 increased by 25.4% to $98.7 million compared to $78.7 million in Q4 2020, driven by growth in customer traffic and new restaurant openings [16] - Net income for Q4 2021 rose by 236.3% to $6 million or $0.30 per diluted share, compared to $1.8 million or $0.09 per diluted share in the same period last year [20] - Adjusted net income for Q4 2021 increased by 104.2% to $7.9 million or $0.40 per diluted share compared to $3.9 million or $0.19 per diluted share in Q4 2020 [20] Business Line Data and Key Metrics Changes - Comparable restaurant sales increased by 20.8% in Q4 2021 compared to the previous year, with a 19% increase in average weekly customers and a 1.8% increase in average check [16] - Off-premise sales accounted for approximately 28% of total revenue in Q4 2021, down from 33% in 2020 [16][21] Market Data and Key Metrics Changes - Comparable restaurant sales decreased by 0.7% compared to 2019, primarily impacted by the timing of Christmas [7][16] - The company experienced a loss of over $1 million in closed door days due to weather during Q1 2022, complicating sales tracking [26] Company Strategy and Development Direction - The company plans to open between five to eight new restaurants in 2022, with most openings expected in the latter half of the year due to labor shortages and supply chain issues [15][22] - Marketing initiatives are being ramped back to 2019 levels, focusing on digital media and influencer programs to reach a broader audience [14] Management Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's recovery trajectory, emphasizing the importance of cost management and operational efficiencies [24] - The company anticipates commodity inflation in the mid to high teens for Q1 2022, with expectations for better pricing in the latter half of the year [17][33] Other Important Information - The company ended Q4 2021 with $106.6 million in cash and cash equivalents, no debt, and $35 million available from its credit facility [21] - General and administrative expenses increased slightly to $6.1 million in Q4 2021, but as a percentage of revenue, it decreased by 140 basis points to 6.2% [19] Q&A Session Summary Question: Update on comps or average weekly sales tracking in Q1 - Management noted that the situation is unclear due to the impact of Omicron and weather-related closures, resulting in over $1 million in lost sales [26] Question: Development and construction costs - Construction costs have increased by 25% to 26%, affecting expected returns on new openings [28] Question: Trajectory of G&A ratio in 2022 and 2023 - Management aims to limit G&A growth to about 80% of store growth as the company resumes expansion [30] Question: Inflation outlook and pricing strategy - Management expects elevated inflation in the first quarter but anticipates better pricing in the latter half of the year [32][33] Question: Staffing levels and their impact on sales - Staffing levels are currently around 85%, with management working to improve this as Omicron conditions improve [35] Question: Guest service and satisfaction amid staffing challenges - Management indicated that while staffing levels affect service speed, guest satisfaction scores remain high [38] Question: Sequential improvement in average check - The increase in average check was attributed to a better mix of dine-in sales compared to previous quarters [41]

Financial Data and Key Metrics Changes - Revenues for Q3 2021 increased 24.3% to $101.9 million compared to $82 million in the same quarter last year, primarily due to growth in customer traffic and new restaurant openings [14][21] - Net income for Q3 2021 increased 112.3% to $6 million or $0.30 per diluted share compared to $2.8 million or $0.14 per diluted share in the same period last year [21] - Adjusted net income for Q3 2021 increased 48.8% to $9.1 million or $0.45 per diluted share compared to $6.1 million or $0.31 per diluted share in the same period last year [22] Business Line Data and Key Metrics Changes - Comparable restaurant sales increased 20.5% during Q3 2021 versus last year, but declined 2.4% compared to 2019 due to the Delta variant impact [15][6] - Off-premise sales accounted for approximately 26% of total revenue in Q3 2021, down from 33% in 2020 and up from 12% in 2019 [14] Market Data and Key Metrics Changes - Labor availability remains a significant challenge, with staffing levels at 80% to 85% system-wide during Q3 2021, impacting the ability to fully capitalize on sales recovery [7][6] - October comparable sales increased 0.8% compared to 2019, marking the first time since the pandemic that sales exceeded pre-COVID levels [6] Company Strategy and Development Direction - The company plans to open between six to eight new restaurants in 2022, focusing on smaller prototypes to improve operating efficiency [13] - The three key pillars of the company's strategy during the pandemic are safety, convenience, and value, which continue to resonate well with guests [9][12] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the underlying business recovery despite ongoing challenges from the pandemic and labor shortages [26] - The company anticipates commodity inflation of 7% to 9% for Q4 2021 and hourly labor inflation of 10% to 11% [16][17] Other Important Information - The company had $105.1 million in cash and cash equivalents, no debt, and $35 million available from a new credit facility as of the end of Q3 2021 [23] - The company repurchased approximately 197,000 shares of common stock for a total of $6.1 million during Q3 2021 [24] Q&A Session Summary Question: What kind of pricing are you thinking of in Q4 and into 2022 to offset inflation? - Management indicated that Q3 pricing was around 3.2% and they are considering a price increase of around 2% to 2.25% in February 2022 [29][30] Question: How much are local restrictions and staffing challenges limiting sales recovery? - Management acknowledged that staffing levels at 80% to 85% have limited their ability to fully serve customers, impacting sales recovery [36][38] Question: What is the outlook on food cost inflation beyond Q4? - Management mentioned they are locked in on certain commodities and are considering locking in a percentage of next year's needs while allowing some to float [41][42] Question: How should we think about margin next year? - Management expects labor costs to return to the low to mid-30% range, with potential offsets from sales leverage and operating costs [45][46] Question: What are the plans for unit development and catering? - Management plans to focus on opening new locations in core markets and ramping up catering services, aiming to return to pre-pandemic levels [51][52]

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 __________________________________ FORM 10-Q __________________________________ ☑ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended September 26, 2021 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 Commission File No. 001-35603 __________________________________ CHUY'S HOLDINGS, INC. (Exact name of regist ...