During the second quarter, three new Chuy’s restaurants were opened - Opry Mills, Tennessee; Bowling Green, Kentucky; and Norman, Oklahoma. Chuy’s has opened six new restaurants year to date, including two new restaurants opened to date during the third quarter of 2012.
The Company currently anticipates that its fiscal year 2012 pro forma diluted net income per share will be $0.54 to $0.56. This compares to pro forma diluted net income per share of $0.38 in 2011. The Company’s 2012 guidance includes an estimated $0.02 to $0.03 per share positive impact due to the fourth quarter of 2012 containing 14 weeks versus 13 weeks in fiscal 2011. Pro forma net income guidance for fiscal year 2012 is based, in part, on the following annual assumptions:
- Total comparable restaurant sales growth for the last half of 2012 of between 1.0% to 1.5% on a 52 week basis bringing the total for the year to approximately 1.5% to 2.0%;
- Restaurant pre-opening expenses of approximately $3.6 million;
- Pro forma general and administrative expense of approximately $9.5 million;
- An effective tax rate of approximately 29% to 31%;
- The opening of 8 new restaurants;
- Net capital expenditures (net of tenant improvement allowances) of $16.7 to $18.8 million; and
- Annual weighted average pro forma diluted shares outstanding of 16.6 million to 16.7 million.
The following definitions apply to these terms as used in this release:Comparable restaurant sales reflect changes in sales for the comparable group of restaurants over a specified period of time. We consider a restaurant to be comparable in the first full quarter following the 18th month of operations. Changes in comparable sales reflect changes in customer count trends as well as changes in average check. Our comparable restaurant base consisted of 21 restaurants during the quarter ended June 24, 2012, and 15 restaurants during the second quarter ended June 26, 2011. Average check is calculated by dividing revenue by total entrees sold for a given time period. Average check reflects menu price influences as well as changes in menu mix. Restaurant-level EBITDA, a non-GAAP measure, represents net income plus the sum of general and administrative expenses, the advisory agreement termination fee, the settlement with our former director, restaurant pre-opening costs, depreciation and amortization, interest and taxes. Conference Call The Company will host a conference call to discuss financial results for the second quarter of 2012 today at 5:00 Eastern Standard Time. Steve Hislop, President and Chief Executive Officer, and Jon Howie, Chief Financial Officer will host the call.