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Takeaway: We recently added CHUY to our Best Ideas list as a short. We'll be hosting a call today @11AM EST to review our thesis and field questions.

Call Details:

  • Toll Free Number:
  • Direct Dial Number:
  • Conference Code: 974734#
  • Materials: CLICK HERE

*Short CHUY Call Today @11AM - 10 29 2014 7 50 07 AM

Our short thesis focuses on the following:

  • Disappointing new unit productivity
  • Cash burn necessitates the current new unit growth rate
  • Rampant support from the biased bulls (read: high expectations, aggressive estimates)
  • Significant insider selling
  • Strong sell-side sentiment and unjustified premium multiple
  • Significant food inflation (dairy, beef, avocados, produce)
  • Overly optimistic consensus food and labor cost assumptions in 2H14
  • A lack of leverage in the business model considering higher year-over-year G&A, D&A and pre-opening spend
  • Aggressive 2H14 and 2015 EPS estimates
  • Approximately 30-40% downside to the name

Howard Penney

Managing Director

Fred Masotta