Zoe's Kitchen, Inc. (NYSE: ZOES) reported Q1 EPS of $0.01, in-line with the analyst estimate of $0.01. Revenue for the quarter came in at $90.6 million versus the consensus estimate of $92.55 million.

• Total revenue increased 12.6% to $90.6 million.
• Comparable restaurant sales decreased 3.3%.
• 10 new Company-owned restaurants opened.
• Income from operations decreased 39.6% to $1.7 million.
• Restaurant contribution* increased 1.8% to $18.0 million, or 19.9% of restaurant sales.
• Net income was $19.0 thousand, or $0.00 per basic and diluted share, compared to net income of $1.4 million, or $0.07 per basic and diluted share.
• Adjusted EBITDA* decreased 2.7% to $8.1 million.
• Adjusted net income* was $0.2 million, or $0.01 per diluted share, compared to adjusted net income of $1.1 million, or $0.06 per diluted share.

Kevin Miles, President and Chief Executive Officer of Zoës Kitchen, commented, “Our first quarter was largely in line with our expectations, reflecting the challenging traffic trends that prevailed across the industry, as well as the cycling of our 8.1% comp from 2016. With similar traffic trends continuing into the second quarter, we have revised our full year outlook. While we are dissatisfied with our comp result in the first quarter, we continued to grow share in our largest markets and are confident in the overall health of our brand.\"

Mr. Miles concluded, “As we look to the balance of the year, we are on track to implement several major initiatives to build sales and traffic, and to reinforce our core strategies. Later this summer, we will introduce new entrées, sandwiches and appetizers that feature bold new flavor profiles, proteins, sauces and ingredients designed to extend our leadership in the Mediterranean space. We are also on track to better meet our guests demand for convenience with the planned re-launch of our web, loyalty and mobile platforms and to build upon our delivery and catering capabilities. We believe these initiatives will drive revenue and continue to grow our brand across all the markets we serve.

GUIDANCE:

Zoe's Kitchen, Inc. sees FY2017 revenue of $314-322 million, versus the consensus of $324.1 million.

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