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Zoe's Kitchen buys three franchise units, announces Q3

In addition to acquiring three units in Louisiana, Zoe's Q3 comps will range between 5.7 percent and 5.9 percent.

November 11, 2014

Zoe's Kitchen Inc. announced the completion of the acquisition of three Zoës Kitchen restaurants, two restaurants under development and area development rights in Louisiana from a franchisee for approximately $8.0 million in cash. The transaction closed on Nov. 10.

"The acquisition of our Louisiana franchised restaurants and area development rights ideally complement our ongoing growth strategy. Our franchise partners have done an outstanding job of building the Zoës Kitchen brand in Louisiana during the last six years and we look forward to continuing to grow our presence in the state," said President and CEO Kevin Miles in a company press release.

The company expects the two restaurants under development to open by the end of its first fiscal quarter 2015. The acquisition is expected to cause an operations loss of $0.3M in Q4, but positive income impacts of approximately $0.8M are anticipated in 2015.

Zoe's Kitchen is also estimating comparable restaurant sales growth will range between 5.7 percent and 5.9 percent for Q3, and between 6.2 percent and 6.3 percent YTD. The company thinks it is on track to close out the year with comps of 6.0 percent to 6.3 percent.

The company also opened four stores during Q3, bringing its total number of units to 126 YTD.