NEW YORK (TheStreet) -- Shares of Mediterranean diner chain Zoe's Kitchen (ZOES) are now trading at $32.15, up 115% from this spring's IPO price of $15. Zoe's recently reported third-quarter earnings results that topped analysts' estimates.
Revenue growth of almost 50% is sustainable, CEO Kevin Miles told TheStreet TV's Gregg Greenberg. Zoe's also saw comparable-store sales rise 5.9% from last year's results.
Miles also said that the company should be able to keep expenses in line going forward, though rising poultry prices squeezed margins in the most recent quarter. However, that wasn't a company-specific issue, as the higher prices hit many rivals as well.
Miles explained that the fast-casual dining space continues to take market share from the more traditional casual dining space. The company's customers also enjoy Zoe's wholesome, "better-for-you" items, he said. The healthy dining trend continues to gain momentum.
By the end of 2014, Zoe's Kitchen will have roughly 130 locations, most in the Southeast. By the end of 2015, there will be about 160 locations, Miles said.
Kansas City and Philadelphia will be two of the new markets the company plans to enter next year. Eventually, management would like to see its store count spread to lucrative markets like New York City and California, he concluded.
-- Written by Bret Kenwell