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Had it; dropped it. Too volatile for me.
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Chipotle is cheaper and better than Chuy's for both consumers and investors. With that competition, Chuy won't grow into its current valuation.
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Over 75% of the IPO proceeds went to owners that are cashing out of this company. This offering is not about a legitimate company but about hustling ignorant investors.
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Great food, Great price, Always crowded. Need I say more.
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Zombie IPO with negative book value and negative free cash flow: http://www.fool.com/investing/general/2012/08/14/attack-of-the-zombie-ipo.aspx?source=itxsitmot0000001&lidx=3
Where do you think your money is going?
Recs
Being from Texas I have been to many locations of this restraunt, and this restraunt chain packs customers in every night. Add to that they are expanding across the southern US, and have had consistant and growing revenues and net income.Outperform
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Austin original, my favorite restaurant, buy what you love
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I've been eating at Chuy's for a long time now. Their brand of high quality tex mex has appeal far beyond Texas, and they should be able to triple their restaurant count without too much trouble. The IPO paid off a lot of debt, which will free up a fair bit of cash for future expansion.
Despite my optimism, there are three cautions here:
1) A private equity firm holds more than 50% of the stock but is locked out from selling for the first 180 days. Will they cash out after that?
2) Rising ingredient costs may put the squeeze on profitability, slowing expansion.
3) They've taken on a fair bit of debt in the past (which they paid off with IPO cash). Will they fund expansion from growth going forward, or lever up?
All that said, I'm optimistic about the business.
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