On Friday, Baird, a financial services firm, adjusted its price target for Chuy's Holdings (NASDAQ:CHUY), a Tex-Mex restaurant chain, to $32.00, down from the previous target of $33.00. The firm maintained its Neutral rating on the company's stock.
The adjustment came after Chuy's Holdings reported its first-quarter results, which showed a mix of outcomes. The company experienced better-than-expected margin performance, which provided some reassurance given the negative traffic trends observed. However, this was countered by a revenue shortfall for the quarter.
Despite the mixed results, Chuy's Holdings has decided to maintain its earnings per share (EPS) guidance for the year 2024. This decision is based on the expectation that the company will see much improved comparable store sales (comps) in the second half of 2024.
Baird's stance on Chuy's Holdings reflects a wait-and-see approach. While acknowledging the positive long-term growth prospects for Chuy's, the firm is exercising caution due to the near-term uncertainties surrounding comps and traffic trends. The financial services firm's analyst noted that the current outlook for the company includes expectations for a stronger performance in the latter half of the year.
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