NEW YORK (TheStreet) -- Zoe's Kitchen (ZOES) stock is gaining 21.29% to $35.55 on heavy trading volume Friday afternoon following the company's better than expected financial results for the fiscal 2015 fourth quarter.

After yesterday's market close, the Plano, TX-based Mediterranean food chain reported a loss of 3 cents per share for the three months ended December 28, while Wall Street was expecting a loss of 6 cents per share.

Revenue increased 31.7% year-over-year to $52.69 million for the latest quarter, beating estimates of $50.66 million.

Comparable restaurant sales were up 7.7%, driven by a 4.8% increase in product mix, a 2.8% rise in transactions and a 0.4% hike in prices.

Zoe's Kitchen opened five company-owned locations during the quarter and opened an additional eight restaurants since the end of the fourth quarter, bringing its total count to 171. The company plans to open 34 to 36 restaurants during the 2016 fiscal year.

So far today, 1.37 million shares of Zoe's Kitchen have exchanged hands, compared with its average daily volume of 405,248 shares.

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Separately, Zoe's Kitchen has a "sell" rating and a letter grade of D at TheStreet Ratings because of the company's unimpressive growth in net income, poor profit margins and generally disappointing historical performance in the stock itself.

You can view the full analysis from the report here: ZOES

TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this articles's author. 

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