News

Zoes Kitchen raises 2016 revenue expectations after successful Q1

June 1, 2016

Zoes Kitchen reported today that its revenue increased 27.6 percent to $80.4 million and that comparable restaurant sales increased 8.1 percent during Q1. Those successful numbers have resulted in the chain raising its 2016 revenue expectations to $277 million to $281 million from $275 million to $280 million, said CEO Kevin Miles.

"We remain focused on key growth strategies which have amplified our position as a leader in Mediterranean cuisine," he said. "Our successful openings in the first quarter, including our new Denver and Kansas City markets, bolster my confidence that guests in all geographies desire the quality and convenience Zoës Kitchen offers. We are on pace to deliver on our 2016 development objective of 34 to 36 new locations."

Other Q1 highlights included:

• Opened 11 company-owned restaurants.
• Restaurant contribution increased 29.4 percent to $17.7 million, or 22 percent of restaurant sales.
• Adjusted EBITDA increased 28.3 percent to $8.3 million.
• Net income was $1.4 million, or $0.07 per basic and diluted share, compared to net income of $0.7 million, or $0.04 per basic and diluted share.
• And adjusted net income was $1.1 million, or $0.06 per diluted share, compared to adjusted net income of $0.6 million or $0.03 per diluted share.

FY 2016 Outlook

• Comparable restaurant sales growth of 4.5 to 6.0 percent (previously 5 to 5.5 percent).
• 34 to 36 company-owned restaurant openings.
• Restaurant contribution margin between 20.5 and 21.0 percent (previously 20.3 and 20.8 percent).
• General and administrative expenses between 11.5 percent and 11.7 percent of total revenue, inclusive of $2.3 million of non-cash equity-based compensation expense (previously 11.6 and 11.8 percent).