NEW YORK (TheStreet) -- Shares of Zoe's Kitchen (ZOES) were tumbling 19.33% to $30.05 on heavy trading volume late Tuesday morning after the company posted weaker-than-anticipated revenue for the 2016 second quarter.
After yesterday's market close, the Plano, TX-based fast-casual restaurant company said revenue rose 27% to $66.3 million year-over-year. The figure fell short of analysts' estimates of $67.3 million.
Adjusted earnings of 6 cents per share met Wall Street's expectations.
Same-store sales rose 4% during the quarter, driven by a 3.1% price increase. Same-store sales grew 8.1% in the first quarter.
For the full-year, Zoe's projects sales in the range of $277 million to $280 million, down from its prior view of $277 million to $281 million. Analysts are looking for revenue of $280 million for 2016.
The company expects same-store sales to rise between 4% and 5% for the full year.
More than 4.9 million of the company's shares traded so far today, higher than its 30-day average of about 289,000 shares.
Separately, 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.
TheStreet Ratings rated this stock as a "hold" with a ratings score of C-.
The company's strengths can be seen in multiple areas, such as its robust revenue growth, impressive record of earnings per share growth and compelling growth in net income. However, as a counter to these strengths, we also find weaknesses including a generally disappointing performance in the stock itself and poor profit margins.
You can view the full analysis from the report here: ZOES