Jefferies Raises Price Target on Zoe's Kitchen (ZOES) to $35 Following 1Q Report
Jefferies reiterated a Hold rating on Zoe's Kitchen (NYSE: ZOES), and raised the price target to $35.00 (from $30.00), following the company's 1Q earnings report. Total revenue grew 28% y/y led by stronger than expected SSS of +8.1%, which was well above the consensus expectations of 4.8%.
Analyst Andy Barish commented, "Solid upside 1Q with adj. EBITDA better than Jefco/Cons. as SSS accelerated to +8.1%, despite a tough year ago compare while RLM of 22.0% (Jefco/Cons. 20.7%/21%) benefited from sales leverage and lower than expected poultry costs, which offset labor headwinds. '16 guide incorporates better 1Q but sounds as if recent trends have been more "back to guided levels" with catering laps and wet Gulf Coast weather. Maintain Hold and raise PT to $35 (from $30)."
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Shares of Zoe's Kitchen closed at $36.92 yesterday.