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Zoe's Kitchen Shares Slip By 13% After Revenue Miss, Guidance Cut

Shares of Zoe's Kitchen Inc ZOES 1.09% traded down more than 13 percent in Monday’s after-hours session, following the announcement of the company’s Q2 results. While EPS of $0.06 were in line with the Street’s consensus, revenue of $66.3 million missed expectations by almost $1 million. Comps surged by 4 percent, as nine new company-owned restaurants were opened over the quarter.

The company trimmed its 2016 revenue outlook to a range of $277 million to $280 million, down from a previous guide of $277 million to $281 million. Analysts were modeling sales of $280.6 million. Comps growth guidance was also cut, from a previous forecast of 4.5 percent to 6 percent growth, to a current estimate of 4 percent to 5 percent growth.

Kevin Miles, President and CEO said, “[The] topline results and operational execution enabled us to deliver strong profit growth with a 20% increase in adjusted EBITDA. We believe the consistency of our results reflects the success of our long term strategic focus and we remain confident in our potential to operate over 1600 units in the US.”

“We continue to execute on our development plans, opening nine new Zoës Kitchen locations during the second quarter and have since added another five locations in the third quarter. With 25 new locations opened year-to-date, we are on track to open 35 to 36 restaurants in 2016. Our increased footprint and growing brand presence continue to establish Zoës Kitchen as the leader in Mediterranean,” Miles added.

Zoe's shares closed Monday's regular session up $0.40 or 1.09 percent to $37.25.

© 2016 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.