Zoës Kitchen Announces Third Quarter 2016 Results

Zoe's Kitchen, Inc. ("Zoës Kitchen" or the "Company") (NYSE:ZOES) today reported financial results for the twelve and forty weeks ended October 3, 2016.

Highlights for the twelve weeks ended October 3, 2016, as compared to the twelve weeks ended October 5, 2015:
  • Total revenue increased 19.4% to $67.3 million.
  • Comparable restaurant sales increased 2.4%.
  • Opened 11 new Company-owned restaurants.
  • Restaurant contribution increased 5.9% to $12.9 million, or 19.1% of restaurant sales.
  • Adjusted EBITDA* increased 7.9% to $6.6 million.
  • Net loss was $0.3 million, or $0.02 per basic and diluted share, compared to net loss of $2.3 million, or $0.12 per basic and diluted share. Net loss for the twelve weeks ended October 3, 2016 included a $1.5 million provision for income taxes. Net loss for the twelve weeks ended October 5, 2015 included a $3.1 million provision for income taxes, $0.3 million of executive transition costs and $0.4 million of casualty loss related to a hurricane.
  • Adjusted net income* was $0.7 million, or $0.04 per diluted share, compared to adjusted net income of $0.9 million or $0.05 per diluted share.

Highlights for the forty weeks ended October 3, 2016, as compared to the forty weeks ended October 5, 2015:
  • Total revenue increased 23.1% to $214.0 million.
  • Comparable restaurant sales increased 4.9%.
  • Opened 36 new Company-owned restaurants and reopened a restaurant in South Carolina damaged by a hurricane last year.
  • Restaurant contribution increased 20.0% to $44.9 million, or 21.0% of restaurant sales.
  • Adjusted EBITDA* increased 18.9% to $22.1 million.
  • Net income was $2.3 million, or $0.12 per basic share and diluted share, compared to net loss of $1.4 million, or $0.07 per basic and diluted share. Net income for the forty weeks ended October 3, 2016 included a $2.6 million provision for income taxes. Net loss for the forty weeks ended October 5, 2015 included a $4.2 million provision for income taxes, $0.9 million of executive transition costs and $0.4 million of casualty loss related to a hurricane.
  • Adjusted net income* was $3.0 million, or $0.16 per diluted share, compared to adjusted net income of $2.5 million or $0.13 per diluted share.

(*) EBITDA, adjusted EBITDA, and adjusted net income are non-GAAP measures. For reconciliations of EBITDA, adjusted EBITDA and adjusted net income to GAAP net income and why the Company considers them useful, see the reconciliation of non-GAAP measures accompanying this release.

Kevin Miles, President and CEO of Zoës Kitchen, stated, "We are pleased to report third quarter results that included our 27th consecutive quarter of positive same store sales growth, while successfully lapping a two-year stacked same store sales comparison over 10%. We opened 11 new Zoës Kitchen restaurants during the quarter, and now have more than 200 locations, doubling our store count in the last three years."

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