Zoe’s Kitchen Inc. downgraded expectations for the year despite a solid showing for the second quarter ended July 11, the company said Monday.
Same-store sales for the quarter increased 4 percent, largely as a result of a 3.1-percent increase in price and 0.9-percent growth in transactions and product mix.
Net income was $1.2 million, or 6 cents per share, compared with $120,000, or 1 cent per share, a year ago, when the company was hit by $500,000 in executive transition costs. Adjusting for that impact, net income a year ago was $1 million, or 5 cents per share.
Revenue for the quarter increased more than 21 percent, to $66.3 million.
“We’re pleased to have delivered strong second-quarter financial results that included a 22-percent increase in total revenue and our 26th consecutive quarter of positive comparable-restaurant sales growth,” said Kevin Miles, Zoe’s Kitchen president and CEO.
However, the Plano, Texas-based company expects same-store sales growth for the year between 4 percent and 5 percent, a decrease from previous projections of 4.5 percent to 6 percent.
Revenue projections were also adjusted with the company expecting $277 million to $280 million, falling from $281 million on the higher end of that range.
Zoe’s Kitchen expects to open 35 to 36 restaurants before the end of the fiscal year, a slight increase from the 34 to 36 new units projected earlier.
The Mediterranean fast-casual chain ended the quarter with 191 locations in 20 states.
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