Chuy’s(US:CHUY)2022-02-18 02:25Financial 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]