Chuy's Holdings: Stifel sees benefits from higher income consumers; upgrades

Chuy's Holdings

15/01/2021 10:31

** Stifel upgrades restaurant chain  CHUY.O  to "buy" from
"hold" while raising PT to $40 from $23
    ** Brokerage says co is likely to benefit from its higher
income consumers' pent-up demand later this year
    ** After few years of struggle with developing new unit,
co's commitment to backfill its existing markets should lead to
better new unit performance and higher rate of success - Stifel
    ** "We project Chuy's net unit expansion rate will climb
from nil in 2021 to 10% in 2023." - Stifel
    ** Brokerage also believes co has managed the
pandemic-related challenges well, which should result in "a
greater flow-through as sales recover and a higher post-pandemic
margin structure"
    ** Despite physical-distancing rules in place, Chuy's can
benefit from its regional exposure to states with a longer warm
season because of its patio seating arrangements - Stifel
    ** 5 of 9 brokerages rate stock "buy" or higher and 4
"hold"; their median PT is $30
    ** As of last close, shares up 14.6% this year

 (Reporting by Tapanjana Rudra)
 ((Tapanjana.Rudra@thomsonreuters.com;))