UPDATE: Jefferies Downgrades Chuy's Holdings As New Unit Model Is Adjusted

In a report published Wednesday, Jefferies analyst Andy Barish downgraded the rating on

from Buy to Hold, and lowered the price target from $33.00 to $26.00. In the report, Jefferies noted, “SSS beat but EPS soft on food & labor pains. Commodity headwinds will persist, but the real issue is whether CHUY can work outside its core TX market at lower AUVs without business “tweaks”. New unit productivity in the Class of '13 continues to drag (especially labor), and $4.2mm AUV target economics have been reset lower. '14 EPS will be flat y/y and with '15 EPS below-trend as well (we est $0.78, +14%), we are downgrading to a Hold rating. PT $26 (fr $33).” Chuy's Holdings closed on Tuesday at $30.17.