Chuy’s (NASDAQ: CHUY) is a casual restaurant chain that serves Tex-Mex food in a happy, festive atmosphere. I’ve eaten in a Chuy’s and the food is excellent. And it doesn’t cost too much. If you avoid the alcohol, it would probably cost you about $10 to $15 per person to eat there. You’ll probably want to buy a drink or two, though, because it’s part of the experience. If our society reopens by Cinco de Mayo, Chuy’s will be packed.
Sometimes great restaurants don’t make great stock investments, however. While Chuy’s stock has been amazing over the last year, since its initial public offering (IPO) in 2012, the stock has underperformed the S&P 500. So why has it been so hot over the past year? Let’s take a look.