Zoe's Kitchen Beats On Earnings And Revenue, Comps Lag

Zoe’s Kitchen (ZOES - Snapshot Report), a chain of fast-casual Mediterranean restaurants, reported its second-quarter fiscal 2015 results after Wednesday’s closing bell. Since its IPO in April 2014, Zoe’s Kitchen has posted higher-than-expected earnings in three of the previous four quarters.

The restaurant industry as a whole has been hit with higher food costs this quarter, stemming from issues in the worldwide food supply and the recent drought in California. While these issues may hurt Zoe’s Kitchen, the company also has built-in cost saving initiatives like waste reduction and efficiency plans.

Coming into today, ZOES seen no earnings estimate revision activity in the last 60 days. The company currently has a Zacks Rank #3 (Hold), although we could see movement in the ranking following today’s report.

We’ve highlighted some of the key stats from this just-released earnings announcement below:

Earnings: ZOES reported a quarterly EPS of 5 cents, which beat out the Zacks Consensus Estimate of $0.04.

Revenue: Zoe’s Kitchen edged out our revenue consensus estimate of $54 million, reporting quarterly revenues of $54.5 million.

Key Stats to Note: Comparable restaurant sales increased 5.6%.

Stock Price: Shares of ZOES were up almost 3% today, but they’ve dropped in after-hours trading and are about -6% on the day. It seems that investors are reacting to the slightly disappointing comps.

Disclosure: Zacks.com contains statements and statistics that have ...

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