We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Zoe's Kitchen (ZOES) Q4 Loss Wider Than Expected, Shares Fall
Read MoreHide Full Article
Zoe’s Kitchen, Inc. posted wider-than-expected loss in fourth-quarter fiscal 2017. The company’s shares fell 8.9% in after-hours trading on Feb 22. Moreover, the stock has declined 28% in a year’s time compared with the 10.5% fall of the industry it belongs to.
Adjusted loss of 12 cents in the quarter was wider than the Zacks Consensus Estimate of a loss of 13 cents. The figure was also wider than the year-ago figure of a loss of 7 cents, thanks to increased investments in sales-boosting initiatives. Moreover, Zoe's Kitchen has been facing the brunt of a challenging restaurant environment in the United States.
Revenues of $71.4 million lagged the consensus mark of $72 million by 0.8% but improved 15.2% year over year backed by restaurant openings. In fact, Zoe’s Kitchen opened 5 company-owned restaurants in the quarter and expects to open another 25 in 2018.
Factors Behind the Numbers
Comparable restaurant sales inched up 0.3%, comprising a 1.6% decline in transactions and product mix and offset by a 1.9% rise in price.
Consequently, the figure compared unfavorably with the year-ago quarter’s comps growth of 0.7%. However, it compared favorably with the prior-quarter’s comps decline of 0.5%.
Restaurant contribution margin fell 60 basis points (bps) year over year to 16% as increased labor and operating expenses offset the improvement in cost of goods.
Zoe's Kitchen, Inc. Price, Consensus and EPS Surprise
As of Dec 25, 2017, cash and cash equivalents amounted to $2.3 million compared with $5.5 million as of Dec 26, 2017.
Total debt at the end of Dec 25, 2017, amounted to $45.8 million, up from $29.9 million in the prior-year period.
2017 Highlights
Total revenues increased 13.8% to $314.1 million. Comparable restaurant sales decreased 2%, consisting of a 3.5% fall in transactions and product mix. This was offset by a 1.5% increase in price.
Adjusted net loss was 10 cents per share for the year against adjusted earnings of 8 cents per share a year ago.
FY18 Outlook
For fiscal 2018, the company expects total revenues between $358 million and $368.0 million.
Meanwhile, management projects comps in the range of flat to 2%.
Further, the company predicts restaurant contribution margin in the band of 17.3-18.4%.
Chipotle Mexican Grill (CMG - Free Report) posted mixed fourth-quarter 2017 results, with adjusted earnings of $1.34 per share surpassing the consensus estimate of $1.32 by 1.5%. The bottom line also grew 143.6% year over year on lower costs and higher revenues.
McDonald's (MCD - Free Report) reported fourth-quarter 2017 adjusted earnings per share of $1.71, beating the consensus mark of $1.59 by 7.5%. The bottom line also improved 19% from the year-ago quarter (16% in constant currencies). The upside reflects strong operating performance and G&A savings.
Dunkin' Brands fourth-quarter 2017 adjusted earnings of 64 cents per share topped the Zacks Consensus Estimate of 63 cents. However, earnings remained flat year over year as a decline in adjusted net income was offset by a fall in shares outstanding.
Zacks Top 10 Stocks for 2018
In addition to the stocks discussed above, would you like to know about our 10 finest buy-and-hold tickers for the entirety of 2018?
Last year's 2017 Zacks Top 10 Stocks portfolio produced double-digit winners, including FMC Corp. and VMware which racked up stellar gains of +67.9% and +61%. Now a brand-new portfolio has been handpicked from over 4,000 companies covered by the Zacks Rank. Don’t miss your chance to get in on these long-term buys.
Image: Bigstock
Zoe's Kitchen (ZOES) Q4 Loss Wider Than Expected, Shares Fall
Zoe’s Kitchen, Inc. posted wider-than-expected loss in fourth-quarter fiscal 2017. The company’s shares fell 8.9% in after-hours trading on Feb 22. Moreover, the stock has declined 28% in a year’s time compared with the 10.5% fall of the industry it belongs to.
Adjusted loss of 12 cents in the quarter was wider than the Zacks Consensus Estimate of a loss of 13 cents. The figure was also wider than the year-ago figure of a loss of 7 cents, thanks to increased investments in sales-boosting initiatives. Moreover, Zoe's Kitchen has been facing the brunt of a challenging restaurant environment in the United States.
Revenues of $71.4 million lagged the consensus mark of $72 million by 0.8% but improved 15.2% year over year backed by restaurant openings. In fact, Zoe’s Kitchen opened 5 company-owned restaurants in the quarter and expects to open another 25 in 2018.
Factors Behind the Numbers
Comparable restaurant sales inched up 0.3%, comprising a 1.6% decline in transactions and product mix and offset by a 1.9% rise in price.
Consequently, the figure compared unfavorably with the year-ago quarter’s comps growth of 0.7%. However, it compared favorably with the prior-quarter’s comps decline of 0.5%.
Restaurant contribution margin fell 60 basis points (bps) year over year to 16% as increased labor and operating expenses offset the improvement in cost of goods.
Zoe's Kitchen, Inc. Price, Consensus and EPS Surprise
Zoe's Kitchen, Inc. Price, Consensus and EPS Surprise | Zoe's Kitchen, Inc. Quote
Balance Sheet
As of Dec 25, 2017, cash and cash equivalents amounted to $2.3 million compared with $5.5 million as of Dec 26, 2017.
Total debt at the end of Dec 25, 2017, amounted to $45.8 million, up from $29.9 million in the prior-year period.
2017 Highlights
Total revenues increased 13.8% to $314.1 million. Comparable restaurant sales decreased 2%, consisting of a 3.5% fall in transactions and product mix. This was offset by a 1.5% increase in price.
Adjusted net loss was 10 cents per share for the year against adjusted earnings of 8 cents per share a year ago.
FY18 Outlook
For fiscal 2018, the company expects total revenues between $358 million and $368.0 million.
Meanwhile, management projects comps in the range of flat to 2%.
Further, the company predicts restaurant contribution margin in the band of 17.3-18.4%.
Zacks Rank & Peer Releases
Zoe’s Kitchen has a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Chipotle Mexican Grill (CMG - Free Report) posted mixed fourth-quarter 2017 results, with adjusted earnings of $1.34 per share surpassing the consensus estimate of $1.32 by 1.5%. The bottom line also grew 143.6% year over year on lower costs and higher revenues.
McDonald's (MCD - Free Report) reported fourth-quarter 2017 adjusted earnings per share of $1.71, beating the consensus mark of $1.59 by 7.5%. The bottom line also improved 19% from the year-ago quarter (16% in constant currencies). The upside reflects strong operating performance and G&A savings.
Dunkin' Brands fourth-quarter 2017 adjusted earnings of 64 cents per share topped the Zacks Consensus Estimate of 63 cents. However, earnings remained flat year over year as a decline in adjusted net income was offset by a fall in shares outstanding.
Zacks Top 10 Stocks for 2018
In addition to the stocks discussed above, would you like to know about our 10 finest buy-and-hold tickers for the entirety of 2018?
Last year's 2017 Zacks Top 10 Stocks portfolio produced double-digit winners, including FMC Corp. and VMware which racked up stellar gains of +67.9% and +61%. Now a brand-new portfolio has been handpicked from over 4,000 companies covered by the Zacks Rank. Don’t miss your chance to get in on these long-term buys.
Access Zacks Top 10 Stocks for 2018 today >>