Piper Jaffray Raised Price Target on Zoe's Kitchen (ZOES) Following Q1 Results

Piper Jaffray maintains an Overweight rating and $40.00 price target on Zoe's Kitchen (NYSE: ZOES) following Q1 results and guidance update. Comps for 1Q came in at +7.7% vs. the street estimate of +5.9%. ZOES Guided FY15 total revenues to $218.2 mil.-$223.2 mil. (vs. $215.0 mil.-$220.0 mil. prior).

Analyst Nicole Regan commented, "Zoe's reported 1Q15 results that were better-than-expected vs. Street expectations and also increased revenue and margin guidance for the year. Comps for 1Q came in at +7.7% vs. the street estimate of +5.9% and driven by traffic of 3.7%, mix of 2.8%, and price of 1.2%. While trends to date in 2Q15 were not quantified we believe the underlying strength from 1Q has continued. We are updating our estimates to reflect 1Q15 results and the company's updated guidance for the year. Our price target remains at $40 based on 20x our FY16E (unchanged vs. prior) EBITDA of the core business and $18/share in new unit pipeline value. We reiterate our Overweight rating."

For an analyst ratings summary and ratings history on Zoe's Kitchen click here. For more ratings news on Zoe's Kitchen click here.

Shares of Zoe's Kitchen closed at $33.78 yesterday.

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