Zoe's Kitchen Inc (NYSE:ZOES)
Zoe’s Kitchen, Inc. ZOES, a chain restaurant company yesterday reported their first quarter 2016 financial results. Zoe’s reported first quarter earnings of $0.06 per share which beat analyst expectations of $0.04 per share. Zoe’s reported first quarter revenues increased 27.6% year over year to $80.41 million which beat analyst expectations of $78.89 million.
Zoe’s Kitchen, Inc. CEO’s Comments
“I am proud of the results our team delivered in the first quarter. We remain focused on key growth strategies which have amplified our position as a leader in Mediterranean cuisine. Our menu additions have been well received by our guests, giving them new reasons to Live Mediterranean. Our successful openings in the first quarter, including our new Denver and Kansas City markets, bolster my confidence that guests in all geographies desire the quality and convenience Zoës Kitchen offers. We are on pace to deliver on our 2016 development objective of 34 to 36 new locations,” said Kevin Miles, President and CEO of Zoës Kitchen.
Miles added, “By incorporating our first quarter performance in our full year outlook, we are raising our 2016 revenue expectations, and we look forward to our continued success.” Business Wire
ZOES Technical Analysis
ZOES opened trading yesterday at $36.53 which was up from the previous days trading of $36.03. ZOES closed trading yesterday at $36.92 and spike up after market to $38.76, equivalent to a 5% increase from the closing price. Taking a look at the daily chart we can see that the last time ZOES traded above this price level was on May 10th when it traded at $39.70. Taking a closer look at the daily chart we can see that ZOES has been on an overall upward trend dating back to February 10th when it traded at its 52 week low price of $23.17. ZOES has a float of 17.15 million shares and traded over 3 times the normal daily trading volume on Tuesday. For trading purposes, I would like to see ZOES open trading on Wednesday above $38.00 and if it does I would be looking to take a long position at the bell. My stop loss would be $0.30 from my entry position fearing anything more than that and the stock would start to fill in the gap up.
Company Profile
Zoe’s Kitchen, Inc., incorporated on October 24, 2007, is a fast-casual restaurant concept serving a distinct menu of Mediterranean-inspired dishes delivered with Southern hospitality. The Company has approximately 170 restaurants across over 20 states, including approximately three franchised locations. The Company’s menu offers meals made from scratch using produce, proteins and other ingredients that are predominantly preservative and additive-free, including its appetizers, soups, salads and kabobs. The Company’s menu offers fresh fruits, vegetables and herbs, grains, olive oil and lean proteins.
The Company’s menu ranges from its hummus varieties, made fresh daily and served with warm pita bread, to its salads and kabobs. The Company offers its customers various items, such as its chicken, steak and salmon kabobs, and chicken and spinach roll-ups (tortillas stuffed with feta cheese, grilled chicken, sundried tomatoes and spinach), each of which is served with a choice of a side item, such as braised rosemary white beans, rice pilaf, pasta salad, roasted vegetables or seasonal fruit. Its Mediterranean Quinoa Salad has quinoa combined with broccoli, tomatoes, onions and feta cheese. The Company caters to a range of dietary needs by offering vegetarian, vegan, gluten-free and its calorie conscious Simply 500 menu selections. The Company’s catering and home meal replacement alternatives include its Zoes Fresh Take grab-and-go coolers and its Mediterranean Family Meals options. The Company also serves beer and wine in its restaurants.