Chuy's Holdings, Inc. (NASDAQ:CHUY) Q1 2020 Earnings Conference Call - Final Transcript

May 21, 2020 • 05:00 pm ET

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Chuy's Holdings, Inc. (NASDAQ:CHUY) Q1 2020 Earnings Conference Call - Final Transcript

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Presentation
Operator
Operator

Good day everyone, and welcome to the Chuy's Holdings First Quarter 2020 Earnings Conference Call. Today's call is being recorded. At this time, all participants have been placed in a listen-only mode and the lines will be open for your questions following the presentation.

On today's call, we have Steve Hislop, President and Chief Executive Officer; and Jon Howie, Vice President and Chief Financial Officer of Chuy's Holdings, Incorporated.

At this time, I'll turn the conference over to Mr. Howie. Please go ahead, sir.

Executive
Jon Howie

Thank you, operator, and good afternoon. By now, everyone should have access to our first quarter 2020 earnings release. If not, it can be found on our website at www.chuys.com in the Investor section.

Before we begin our review of formal remarks, I need to remind everyone that part of our discussions today will include forward-looking statements. These forward-looking statements are not guaranteeing future performance and therefore you should not put undue reliance on them. These statements are also subject to numerous risks and uncertainties that could cause actual results to differ materially from what we expect. We refer all of you to our recent SEC filings for a more detailed discussion of the risks that could impact our future operating results and financial condition.

With that out of the way, I'd like to turn the call over to Steve.

Executive
Steve Hislop

Thank you, John. Good afternoon everyone and thank you for joining us on the call today. While we will briefly touch on our quarterly results, our main focus today will be the impact of COVID-19 on our business and the actions that we've taken and will be taken in response.

Beginning with the first quarter results, we had a solid start to 2020 as we continue to build upon the success of our key initiatives, including those surrounding targeted marketing, investments in technology and off-premise sales. The positive sales trajectory was evident in the 3.3% increase in our comparable restaurant sales for the first 10 weeks of the first quarter. However, as you would imagine, we experienced a material slowdown during the last three weeks of March as our company, along with the rest of the country has been impacted by the COVID-19 [Phonetic] pandemic. Since then we have taken several steps to ensure that we can weather the short-term crisis and emerge as a stronger company in the long run.

As many of you know, to comply with both state and local mandates, our team members work tirelessly to transition 92 of our restaurants to an efficient off-premise model. During the stay at home order we have offered our guests a focused menu featuring a number of long-term favorites as well as a convenient family meal and beverage kits, delivered safely to our guests through enhanced takeout and curbside pickup procedures. We have also provided delivery services through our national delivery partner, DoorDash as well as other local delivery services in some markets. I'm pleased to say that our team's hard work has paid off as