Chuy's reports Q3 adjusted EPS 20c, consensus 29c
Reports Q3 revenue $101.2M , consensus $104.57M. On a calendar basis, comparable restaurant sales increased 0.5%. The company estimates that unfavorable weather conditions during Q3 more than offset the favorable impact from lapping Hurricanes Harvey and Irma last year by approximately 30 basis points. The company said, "Despite top-line improvement, we experienced a challenging third quarter as we continued to face industry-wide labor cost pressure and heavier rainfall than normal that resulted in the wettest September in history in most of our core Texas markets, which further muted our results by reducing our patio sales by over 18%. As we look towards the remainder of the year, we are encouraged that our new marketing efforts, that are being tested in November and December, will build added awareness and frequency and set us up well for successful execution during 2019. Weathering the current short-term challenge is a key priority for us, and as a result, we will focus on labor efficiency, technology initiatives and other margin enhancements that should help us build a foundation for long-term sales growth and profitability. With this operating focus, front and center, we will also be limiting our development during 2019 to five to seven restaurants."