Chuy's Holdings' Growth Troubles in 3 Charts
From 2011 through 2016, Tex-Mex chain Chuy's Holdings (NASDAQ: CHUY) was a steady growth machine, increasing both its revenue and its restaurant base at compound annual growth rates of more than 20%. But then the so-called "restaurant recession" -- caused by declining customer traffic and what many believe is an oversupply of restaurant choices -- helped send chains like Logan's Roadhouse and holding company Ignite Restaurant Group into bankruptcy.
The trend of fewer people dining out started to weigh on Chuy's results in late 2016 as well. And now, after three consecutive quarters of negative comparable restaurant sales growth, investors have largely abandoned the stock, with shares trading near their all-time lows. How do Chuy's recent results and forward guidance look in the context of its long-term track record? Let's just say it's not a pretty picture.
Source: Fool.com