David Stahl
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Lowered Expectations May Have Set Up Kona Grill For A Q3 Surprise

Wedbush thinks that Kona Grill Inc  is well-placed to deliver better-than-estimated numbers, citing lower expectations currently. The firm is confident that the company could report profit next year since the unit growth is restricted, which is termed as sensible.

There does not appear to be big changes between the firm's and the Street analysts' estimates for the third quarter. Currently, expectations are for a loss of $0.15 a share on $45.0 million revenue for the third quarter.

The brokerage believes the company is doing well to restrict unit growth from 8 percent to 3–4 percent in 2017. This is expected to enhance the profitability of new stores as the firm pointed out that 33 percent of Kona Grill's total sales is below 18-months old.

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