Jefferies Remains Sidelined on Zoe's Kitchen, Inc. (ZOES) Following 2Q
- Top 10 News for 10/17 - 10/21: Merger Rumors Abound; CEOs Depart; Tesla Kicks Autopilot Up A Notch
- Wall Street ends little changed; Microsoft hits record
- AT&T (T) in Advanced Talks to Acquire Time Warner (TWX) - DJ
- Rockwell Automation (ROK) Said to Attract Takeover Interest from Schneider Electric - Source
- British American Tobacco Offers to Acquire Remaining Shares of Reynolds American (RAI) for $56.50/Share
Get instant alerts when news breaks on your stocks. Claim your 2-week free trial to StreetInsider Premium here.
Jefferies reiterated a Hold rating and $33.00 price target on Zoe's Kitchen (NYSE: ZOES) following the company's 2Q earnings report. The company's EPS and EBITDA upside came from 160 bps reduction in COGs with deflation, led by chicken.
Analyst Andy Barish commented, "EPS in line with Street and above our low-end estimate, but sss in line with us at +4% and below Street of +5%. Slower industry traffic appears to be impacting sss and 2H sss guidance is an implied 2-4%, with 3% price in place, which means flat-to-negative traffic. Even very strong positioned brands like ZOES facing competition with fast-casual unit proliferation. We tweak ests, maintain $33 PT, Hold rating and stock expected to react negatively to slowing sss."
Shares of Zoe's Kitchen closed at $37.25 yesterday.
Serious News for Serious Traders! Try StreetInsider.com Premium Free!
You May Also Be Interested In
- Jefferies Cuts Price Target on Reliance Steel (RS) Following 3Q EPS Miss and Guidance
- RBC Capital Raises Price Target on Benchmark Electronics (BHE) Following In-Line 3Q
- Wedbush Reiterates Outperform on Pool Corp. (POOL) Following 3Q Report
Create E-mail Alert Related CategoriesAnalyst Comments, Analyst EPS View
Related EntitiesJefferies & Co, Earnings
Sign up for StreetInsider Free!
Receive full access to all new and archived articles, unlimited portfolio tracking, e-mail alerts, custom newswires and RSS feeds - and more!