Chuy’s Holdings, Inc. Announces Fourth Quarter and Fiscal Year 2018 Financial Results

Chuy’s Holdings, Inc. (NASDAQ:CHUY) today announced financial results
for the 13-week and 52-week periods ended December 30, 2018.

Highlights for the 13-week fourth quarter ended December 30,
2018, compared to the 14-week fourth quarter ended December 31, 2017
were as follows:

• Revenue increased to $96.8 million from $96.0 million in the fourth
  quarter of 2017. The extra operating week in fiscal 2017 accounted for
  approximately $7.3 million in revenue in that year.
• On a calendar basis, comparable restaurant sales increased 0.9%. The
  Company estimates that unfavorable weather conditions during the
  fourth quarter of 2018, partially offset by the timing of New Year's
  Eve, had a negative impact of approximately 40 basis points on our
  comparable sales.
• Net income was $3.4 million, or $0.20 per diluted share, compared to
  net income of $15.9 million, or $0.93 per diluted share, in the fourth
  quarter of 2017. Net income in the fourth quarter of 2017 included an
  $11.7 million favorable adjustment due to the revaluation of our net
  deferred tax liability as a result of The Tax Cuts and Jobs Act of
  2017 (the "Tax Act") as well as a gain on insurance settlements of
  $1.4 million ($1.0 million net of tax).
• Adjusted net income⁽¹⁾ was $1.8 million, or $0.11 per
  diluted share, compared to $3.2 million, or $0.19 per diluted share,
  in the same period in 2017. The Company estimates that the extra
  operating week during the fourth quarter of 2017 contributed $0.07 per
  diluted share to adjusted net income, which was partially offset by
  $0.01 per diluted share as a result of the temporary closure of one
  restaurant due to the damage from Hurricane Harvey during the fourth
  quarter of 2017.
• Restaurant-level operating profit⁽¹⁾ was $12.4 million
  compared to $15.2 million in the fourth quarter of 2017. The Company
  estimates that the fourth quarter of 2017 had a favorable impact from
  the extra operating week of approximately $2.0 million.
• Two new restaurants opened during the fourth quarter of 2018.

Highlights for the 52-week fiscal year ended December 30,
2018, compared to the 53-week fiscal year ended December 31, 2017 were
as follows:

• Revenue increased 7.7% to $398.2 million from $369.6 million in the
  2017 fiscal year. The extra operating week in fiscal 2017 accounted
  for approximately $7.3 million in revenue in that year.
• On a calendar basis, comparable restaurant sales increased 0.5%.
• Net income was $5.5 million, or $0.32 per diluted share, compared to
  $29.0 million, or $1.70 per diluted share, during the fiscal year
  2017. Net income in fiscal year 2018 included a $12.3 million ($9.4
  million net of tax) non-cash loss related to an impairment of assets
  at six restaurants. Net income in fiscal year 2017 included a
  favorable adjustment of $11.7 million due to the revaluation of our
  net deferred tax liability as a result of the Tax Act as well as a
  gain on insurance settlements of $1.4 million ($1.0 million net of
  tax).
• Adjusted net income⁽¹⁾ was $15.0 million, or $0.88 per
  diluted share, compared to $16.3 million, or $0.96 per diluted share,
  during the fiscal year 2017. The Company estimates that the extra
  operating week in fiscal year 2017 contributed $0.07 per diluted share
  to adjusted net income in that year, which was partially offset by
  $0.04 per diluted share as a result of the temporary closure of one
  restaurant due to the damage from Hurricane Harvey.
• Restaurant-level operating profit⁽¹⁾ was $60.5 million
  compared to $64.6 million during fiscal year 2017. The Company
  estimates that fiscal year 2017 had a favorable impact from the extra
  operating week of approximately $2.0 million.
• A total of nine new restaurants opened during 2018.

(1)		Adjusted net income and restaurant-level operating profit are non-GAAP measures. For reconciliations of adjusted net income and restaurant-level operating profit to the most directly comparable GAAP measure see the accompanying financial tables. For a discussion of why we consider them useful, see “Non-GAAP Measures” below.

Steve Hislop, President and Chief Executive Officer of Chuy’s Holdings,
Inc. commented, “While 2018 was a challenging year for the industry, it
was also a year of accomplishments, as we successfully laid down the
foundation to further our operational excellence and generate healthy
top line growth in the years to come. From the newly developed marketing
campaign aimed to drive awareness and frequency, to meaningful progress
in our online ordering system and catering program implementations, we
believe we have positioned our Company for a solid start in 2019."

Hislop added, “During 2018, we successfully grew our store base by 10%
with the addition of nine new Chuy’s restaurants. We believe we still
have a long runway of growth, and for 2019, we will focus on in-filling
our existing markets and plan to open between five and seven
restaurants. We have a lot of work ahead of us, but we are excited with
the prospect of growing the Chuy’s brand and further enhancing our
long-term shareholder value.”

Fourth Quarter 2018 Financial Results

Revenue increased to $96.8 million in the fourth quarter of 2018
compared to $96.0 million in the fourth quarter of 2017. The increase in
revenue was primarily driven by $9.2 million in incremental revenue from
an additional 141 operating weeks provided by new restaurants opened
during and subsequent to the fourth quarter of 2017 as well as an
increase in our fiscal comparable restaurant sales. These increases were
partially offset by a $7.3 million decrease in revenue as a result of
the loss of an extra operating week as compared to fiscal year 2017 and
a decrease in revenue from our non-comparable restaurants that are not
included in the incremental revenue discussed above. Revenue for these
non-comparable restaurants is historically lower as the restaurants
transition out of the 'honeymoon' period that follows a restaurant's
initial opening. The honeymoon period refers to the weeks following a
restaurant's initial opening, during which sales are typically higher
than normal.

Due to the inclusion of a 53rd week in fiscal year 2017, there is a
one-week calendar shift in the comparison of the fourth fiscal quarter
of 2018 to the fourth fiscal quarter of 2017. After adjusting for the
timing of the 53rd week, comparable restaurant sales, on a calendar
basis, increased 0.9% for the thirteen weeks ended December 30, 2018
compared to the thirteen weeks ended December 31, 2017. The increase in
comparable sales was primarily driven by a 2.2% increase in average
check, partially offset by a 1.3% decrease in average weekly customers.
The Company estimates that comparable restaurant sales and weekly
average customers were negatively affected by unfavorable weather
conditions, partially offset by timing of New Year's Eve of
approximately 40 basis points. The comparable restaurant base consisted
of 81 restaurants during the fourth quarter of 2018.

On a fiscal basis, which does not adjust for the one-week calendar shift
as previously noted, sales for the same restaurants in the comparable
restaurant base in the thirteen weeks ended December 30, 2018 increased
1.3% compared to the thirteen weeks ended December 24, 2017.

Total restaurant operating costs as a percentage of revenue increased to
87.2% in the fourth quarter of 2018 from 84.2% in the fourth quarter of
2017. This increase was primarily driven by an increase in overall
operating costs as well as an increase of approximately 90 basis points
as a result of operating deleverage caused by the loss of an extra
operating week in the fourth quarter of 2018 as compared to fiscal year
2017. The increase in operating costs was mainly attributed to higher
labor costs as a percentage of revenue due to new store labor
inefficiencies and hourly labor rate inflation; higher utility and
insurance costs; higher repair and maintenance costs; and an increase in
occupancy costs as a result of higher rental expense on certain newly
opened restaurants and increases in rent on extended lease terms at some
existing restaurants. These increases were partially offset by lower
training expense for our new managers.

Total general and administrative expenses increased to $5.2 million as
compared to $4.3 million in the same period in 2017. This increase was
primarily driven by higher management compensation in part due to
additional headcount to support our growth.

Income tax benefit was $2.0 million compared to $10.4 million in the
fourth quarter of 2017. The tax benefit in the fourth quarter of 2018
included a $1.6 million favorable tax impact relating to the non-cash
loss on an asset impairment recorded during the third quarter of 2018.
The tax benefit in the fourth quarter of 2017 included a deferred tax
liability revaluation adjustment of $11.7 million as a result of a
decrease in the federal statutory tax rate from 35% to 21% effective
January 1, 2018. Excluding the impact of these adjustments, our
effective tax rate was a benefit of 30.1% in the fourth quarter of 2018
compared to an expense 23.9% in the same period last year. The decrease
in our effective tax rate for the fourth quarter of 2018 is primarily
related to the decrease in the federal statutory tax rate and an
increase in employee tax credits in proportion to our taxable income.

During fiscal 2017, the Company recorded a non-recurring $1.4 million
($1.0 million, net of tax) gain on insurance settlements mainly related
to Hurricane Harvey.

As a result of the foregoing, net income in the fourth quarter of 2018
decreased to $3.4 million, or $0.20 per diluted share, compared to net
income of $15.9 million, or $0.93 per diluted share in the fourth
quarter of 2017.

Adjusted net income was $1.8 million, or $0.11 per diluted share, as
compared to $3.2 million, or $0.19 per diluted share, in the same period
in 2017. The Company estimates that the extra operating week during the
fourth quarter of 2017 contributed $0.07 per diluted share to adjusted
net income last year, which was partially offset by $0.01 per diluted
share as a result of the temporary closure of one restaurant due to the
damage from Hurricane Harvey during the fourth quarter of 2017. Please
see the reconciliation of adjusted net income to net income in the
accompanying financial tables.

Fiscal Year 2018 Financial Results

Revenue increased 7.7% to $398.2 million in fiscal year 2018 compared to
$369.6 million in fiscal year 2017. The increase in revenue was
primarily driven by $41.0 million in incremental revenue from an
additional 567 operating weeks provided by new restaurants opened during
and subsequent to fiscal year 2017 as well as an increase in our fiscal
year comparable sales. These increases were partially offset by a $7.3
million decrease in revenue as a result of the loss of an extra
operating week as compared to fiscal year 2017 and a decrease in revenue
from our non-comparable restaurants that are not included in the
incremental revenue discussed above. Revenue related to non-comparable
restaurants is historically lower as the restaurants transition out of
the 'honeymoon' period that follows a restaurant's initial opening. The
honeymoon period refers to the weeks following a restaurant's initial
opening, during which sales are typically higher than normal.

Due to the inclusion of a 53rd week in fiscal year 2017, there is a
one-week calendar shift in the comparison of the fiscal year 2018 to
fiscal year 2017. After adjusting for the timing of the 53rd week,
comparable restaurant sales, on a calendar basis, increased 0.5% for the
52-weeks ended December 30, 2018 compared to the 52-weeks ended December
31, 2017. The increase in comparable restaurant sales was primarily
driven by a 2.0% increase in average weekly check, partially offset by a
1.5% decrease in weekly average customers. The Company estimates the
unfavorable weather conditions during fiscal year 2018 more than offset
the favorable impact from lapping Hurricanes Harvey and Irma last year
by approximately 60 basis points.

On a fiscal basis, which does not adjust for the one-week calendar
shift, as previously noted, sales for the same restaurants in the
comparable restaurant base in the 52-weeks ended December 30, 2018
increased 0.2% compared to the 52-weeks ended December 24, 2017.

Total restaurant operating costs as a percentage of revenue increased to
84.7% in fiscal year 2018 from 82.4% in fiscal year 2017. This increase
was primarily driven by an increase in overall operating costs as well
as an increase of approximately 20 basis points as a result of operating
deleverage caused by the loss of an extra operating week as compared to
fiscal year 2017. The increase in operating costs was primarily driven
by higher labor costs as a percentage of revenue due to new store labor
inefficiencies and hourly labor rate inflation; higher insurance and
maintenance costs; higher credit card fees and delivery service charges
as well as an increase in occupancy costs as a result of higher rental
expense on certain newly opened restaurants and increases in rent on
extended lease terms at some existing restaurants. These increases were
partially offset by lower cost of sales mainly driven by lower pricing
on avocados, cheese and chicken; and lower training expense for our new
managers.

Total general and administrative expenses increased to $20.7 million as
compared to $18.7 million in the same period in 2017. This increase was
primarily driven by higher management compensation in part due to
additional headcount to support our growth as well as an increase in
legal and professional fees.

During fiscal year 2018, the Company incurred a non-cash loss of $12.3
million ($9.4 million, net of tax or $0.55 per diluted share) related to
an impairment of assets at six restaurants.

During fiscal year 2017, the Company recorded a non-recurring favorable
deferred tax liability revaluation adjustment of $11.7 million and a
$1.4 million ($1.0 million, net of tax) gain on insurance settlements
mainly related to Hurricane Harvey.

Income tax benefit was $2.4 million in fiscal year 2018 and $5.5 million
in fiscal year 2017. The tax benefit in fiscal year 2018 included a $2.9
million favorable tax impact relating to the non-cash loss on an asset
impairment recorded during the third quarter of 2018. The tax benefit in
fiscal year 2017 included a deferred tax liability revaluation
adjustment of $11.7 million recorded in the fourth quarter of 2017 as a
result of a decrease in the federal statutory tax rate from 35% to 21%
effective January 1, 2018. Excluding the impact of these adjustments,
our effective tax rate for fiscal year 2018 was 3.5% compared to 26.4%
in the same period last year. The decrease in our effective tax rate is
primarily related to the decrease in the federal statutory tax rate and
an increase in employee tax credits in proportion to our taxable income.

As a result of the foregoing, net income in fiscal 2018 was $5.5
million, or $0.32 per diluted share, compared to net income of $29.0
million, or $1.70 per diluted share in fiscal 2017.

Adjusted net income was $15.0 million, or $0.88 per diluted share,
compared to $16.3 million, or $0.96 per diluted share, in the same
period in 2017. The Company estimates that the extra operating week in
fiscal year 2017 contributed $0.07 per diluted share to adjusted net
income last year, which was partially offset by $0.04 per diluted share
as a result of the temporary closure of one restaurant due to the damage
from Hurricane Harvey. Please see the reconciliation of adjusted net
income to net income in the accompanying financial tables.

Development Update

During the fourth quarter, two new restaurants were opened, one in
Overland Park, Kansas and one in Houston, Texas. We opened nine new
restaurants during 2018, bringing the total restaurant count to 100 as
of December 30, 2018.

For 2019, the Company expects to open between five and seven new Chuy’s
locations. Subsequent to the end of the fourth quarter, the Company
closed two restaurants; one in Atlanta, Georgia, and one in Miami,
Florida.

Share Repurchase Program

During the fourth quarter of 2018, the Company repurchased approximately
95,000 shares for a total cost of $2.0 million. For the full fiscal
year, the Company repurchased 160,000 shares for a total cost of $3.6
million. As of the end of the fiscal year, the Company had $26.4 million
remaining under the current $30.0 million repurchase authorization
through December 31, 2019.

2019 Outlook

The Company currently expects 2019 net income per diluted share of $0.91
to $0.95. This compares to adjusted net income per diluted share of
$0.88 for fiscal year 2018. The net income guidance for fiscal year 2019
is based, in part, on the following annual assumptions:

• Comparable restaurant sales growth of 1.5% to 2.5%;
• Restaurant pre-opening expenses of $2.1 million to $2.9 million;
• General and administrative expense of $23.3 million to $23.8 million;
• An effective tax rate of 6% to 8%;
• The opening of five to seven new restaurants;
• Annual weighted average diluted shares outstanding of 17.1 million to
  17.2 million shares; and
• Net capital expenditures (net of tenant improvement allowances) of
  $24.5 million to $30.7 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.

Average check is calculated by dividing revenue by total entrées
sold for a given time period. Average check reflects menu price
increases as well as changes in menu mix.

Average weekly customers is measured by the number of entrées
sold per week. Our management team uses this metric to measure changes
in customer traffic.

Total restaurant operating costs includes cost of sales, labor,
operating, occupancy and marketing costs.

Conference Call

The Company will host a conference call to discuss financial results for
the fourth quarter and fiscal year 2018 today at 5:00 p.m. Eastern Time.
Steve Hislop, President and Chief Executive Officer, and Jon Howie, Vice
President and Chief Financial Officer, will host the call.

The conference call can be accessed live over the phone by dialing
888-204-4368 or for international callers by dialing 323-794-2423. A
replay will be available after the call and can be accessed by dialing
844-512-2921 or for international callers by dialing 412-317-6671; the
passcode is 6176759. The replay will be available until Thursday, March
14, 2019.

The conference call will also be webcast live from the Company’s
corporate website at www.chuys.com
under the Investors section. An archive of the webcast will be available
on the Company's corporate website shortly after the call has concluded.

About Chuy’s

Founded in Austin, Texas in 1982, Chuy's owns and operates full-service
restaurants across 19 states serving a distinct menu of authentic, made
from scratch Tex-Mex inspired dishes. Chuy's highly flavorful and
freshly prepared fare is served in a fun, eclectic and irreverent
atmosphere, while each location offers a unique, "unchained" look and
feel, as expressed by the concept's motto "If you've seen one Chuy's,
you've seen one Chuy's!" For further information about Chuy's, including
the nearest location, visit the Chuy's website at www.chuys.com.

Forward-Looking Statements

Certain statements in this release that are not historical facts,
including, without limitation, those relating to our anticipated
financial performance and related assumptions, the anticipated results
from our marketing efforts, technology initiatives and catering program
implementation, our development plan and the number of restaurants we
will open next year are forward-looking statements within the meaning of
the Private Securities Litigation Reform Act of 1995 that involve risks
and uncertainties. Such statements are based upon the current beliefs
and expectations of the management of the Company. Actual results may
vary materially from those contained in forward-looking statements based
on a number of factors including, without limitation, the actual number
of restaurant openings, the sales at the Company’s restaurants, changes
in restaurant development or operating costs, such as food and labor,
the Company’s ability to leverage its existing management and
infrastructure, changes in restaurant pre-opening expense, general and
administrative expenses, capital expenditures, or our effective tax
rate, changes in the number of diluted shares outstanding, strength of
consumer spending, conditions beyond the Company’s control such as
timing of holidays, weather, natural disasters, acts of war or
terrorism, disease outbreaks, epidemics or pandemics impacting the
Company’s customers or food supplies, the timing and amount of
repurchases of our common stock, if any, changes to the Company’s
expected liquidity position, the possibility that the repurchase program
may be suspended or discontinued and other factors disclosed from time
to time in the Company’s filings with the U.S. Securities and Exchange
Commission. Investors should take such risks into account when making
investment decisions. Stockholders and other readers are cautioned not
to place undue reliance on these forward-looking statements, which speak
only as of the date on which they are made. The Company undertakes no
obligation to update any forward-looking statements, except as required
by law.

Non-GAAP Measures

We prepare our financial statements in accordance with GAAP. Within our
press release, we make reference to non-GAAP restaurant level operating
profit, restaurant-level operating margin and adjusted net income.
Restaurant-level operating profit represents income (loss) from
operations plus the sum of general and administrative expenses,
restaurant pre-opening costs, loss on asset impairment, gain on
insurance settlements and depreciation and amortization.
Restaurant-level operating profit is presented because: (i) we believe
it is a useful measure for investors to assess the operating performance
of our restaurants without the effect of non-cash depreciation and
amortization expenses; and (ii) we use restaurant-level operating profit
internally as a benchmark to evaluate our restaurant operating
performance and to compare our performance to that of our competitors.
Additionally, we present restaurant-level operating profit because it
excludes the impact of general and administrative expenses, which are
not incurred at the restaurant level, restaurant pre-opening costs as
well as gain on insurance settlements and loss on asset impairment.
Although we incur pre-opening costs on an ongoing basis as we continue
to open new restaurants, the pre-opening costs, gain on insurance
settlements and loss on asset impairment are not components of a
restaurant's ongoing operating expenses. The use of restaurant-level
operating profit thereby enables us and our investors to compare
operating performance between periods and to compare our operating
performance to the performance of our competitors. The measure is also
widely used within the restaurant industry to evaluate restaurant-level
productivity, efficiency and performance. The use of restaurant-level
operating profit as a performance measure permits a comparative
assessment of our operating performance relative to our performance
based on our GAAP results, while isolating the effects of some items
that vary from period to period without any correlation to core
operating performance or that vary widely among similar companies. We
present restaurant-level operating margin for the same reasons we
present restaurant-level operating profit.

Adjusted net income represents net income before loss on asset
impairment, gain on insurance settlements, income tax effect on
adjustments and deferred tax liability adjustment. We believe the use of
adjusted net income provides additional information to enable us and our
investors to facilitate year-over-year performance comparison and a
comparison to the performance of our peers.

Restaurant-level operating profit, restaurant-level operating margin and
adjusted net income exclude various expenses as discussed above that may
materially impact our consolidated results of operations. As a result,
these measures are not indicative of the Company’s consolidated results
of operations. We present these measures exclusively as supplements to,
and not substitutes for, net income or income from operations computed
in accordance with GAAP. As supplemental disclosures, restaurant-level
operating profit and adjusted net income should not be considered as
alternatives to net income or income from operations as an indicator of
our performance or as alternatives to any other measure determined in
accordance with GAAP.

Chuy’s Holdings, Inc. and Subsidiaries
Unaudited Condensed Consolidated Income Statements
(In thousands, except share and per share data)
		Quarter Ended														Year Ended
		December 30, 2018							December 31, 2017							December 30, 2018							December 31, 2017
Revenue		$	96,835			100.0	%		$	96,020			100.0	%		$	398,200			100.0	%		$	369,589			100.0	%
Costs and expenses:
Cost of sales		25,516				26.3			25,337				26.4			101,946				25.6			96,270				26.0
Labor		36,051				37.2			34,991				36.4			144,325				36.2			128,846				34.9
Operating		14,385				14.9			13,066				13.6			57,457				14.4			51,462				13.9
Occupancy		7,731				8.0			6,714				7.0			30,028				7.5			25,642				6.9
General and administrative		5,208				5.4			4,271				4.4			20,725				5.2			18,661				5.0
Marketing		744				0.8			713				0.8			3,929				1.0			2,756				0.7
Restaurant pre-opening		657				0.7			2,165				2.3			4,382				1.1			6,233				1.7
Impairment and closure costs		—				—			—				—			12,336				3.1			—				—
Gain on insurance settlements		—				—			(1,362		)		(1.4	)		—				—			(1,362		)		(0.3	)
Depreciation and amortization		5,100				5.2			4,610				4.8			19,804				5.1			17,560				4.8
Total costs and expenses		95,392				98.5			90,505				94.3			394,932				99.2			346,068				93.6
Income from operations		1,443				1.5			5,515				5.7			3,268				0.8			23,521				6.4
Interest expense, net		24				—			17				—			83				—			65				0.1
Income before income taxes		1,419				1.5			5,498				5.7			3,185				0.8			23,456				6.3
Income tax benefit		(1,991		)		(2.0	)		(10,384		)		(10.8	)		(2,354		)		(0.6	)		(5,500		)		(1.5	)
Net income		$	3,410			3.5	%		$	15,882			16.5	%		$	5,539			1.4	%		$	28,956			7.8	%
Net income per common share: Basic		$	0.20						$	0.94						$	0.33						$	1.71
Net income per common share: Diluted		$	0.20						$	0.93						$	0.32						$	1.70
Weighted-average shares outstanding: Basic		16,904,025							16,917,949							16,931,589							16,894,986
Weighted-average shares outstanding: Diluted		16,995,523							17,020,563							17,062,347							17,003,233

Reconciliation of GAAP net income and net income per share to adjusted results
(Unaudited, in thousands except share and per share data)
		Quarter Ended												Year Ended
		December 30, 2018						December 31, 2017						December 30, 2018						December 31, 2017
Net income as reported		$	3,410					$	15,882					$	5,539					$	28,956
Impairment and closure costs		—						—						12,336						—
Gain on insurance settlements		—						(1,362		)				—						(1,362		)
Income tax effect on adjustments		(1,564		)		(1)		360				(2)		(2,897		)		(1)		360				(2)
Deferred tax liability adjustment		—				(3)		(11,696		)		(3)		$	—			(3)		(11,696		)		(3)
Adjusted net income		$	1,846					$	3,184					$	14,978					$	16,258
Adjusted net income per common share: basic		$	0.11					$	0.19					$	0.88					$	0.96
Adjusted net income per common share: diluted		$	0.11					$	0.19					$	0.88					$	0.96
Weighted-average shares outstanding: basic		16,904,025						16,917,949						16,931,589						16,894,986
Weighted-average shares outstanding: diluted		16,995,523						17,020,563						17,062,347						17,003,233

(1)		Reflects the tax expense associated with the adjustment for the loss on asset impairment. The tax expense was calculated based on the change in the tax provision calculations after adjusting for the reconciling item.
(2)		Reflects the income tax effect associated with the adjustment on gain on insurance settlements based on the Company’s effective tax rate prior to the impact of the Tax Act.
(3)		Reflects the revaluation of our net deferred tax liability using the new lower tax rate pursuant to the Tax Act.

Reconciliation of GAAP income from operations to restaurant-level operating profit
(Unaudited, in thousands)
		Quarter Ended								Year Ended
		December 30, 2018				December 31, 2017				December 30, 2018				December 31, 2017
Income from operations as reported		$	1,443			$	5,515			$	3,268			$	23,521
General and administrative		5,208				4,271				20,725				18,661
Restaurant pre-opening expenses		657				2,165				4,382				6,233
Impairment and closure costs		—				—				12,336				—
Gain on insurance settlements		—				(1,362		)		—				(1,362		)
Depreciation and amortization		5,100				4,610				19,804				17,560
Restaurant-level operating profit		$	12,408			$	15,199			$	60,515			$	64,613
Restaurant-level operating margin (1)		12.8		%		15.8		%		15.2		%		17.5		%

(1)		Restaurant-level operating margin is calculated by dividing restaurant-level operating profit by revenue.

Chuy’s Holdings, Inc. and Subsidiaries
Unaudited Selected Balance Sheet Data
(In thousands)
											December 30, 2018				December 31, 2017
Cash and cash equivalents											$	8,199			$	8,785
Total assets											277,084				271,967
Long-term debt											—				—
Total stockholders’ equity											193,851				188,962

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