Comp sales at Zoes Kitchen rose 5.6 percent in the second quarter, the fast-casual company said Thursday, contributing to a 30 percent year-over-year growth in total revenue.
Despite its revenue increase—a $12.6 million jump, to $54.5 million—net income at the 158-unit Mediterranean concept fell 91 percent, to $0.1 million, Zoes Kitchen said, due in part to costs associated with the mid-June resignation of its chief financial officer, Jason Morgan.
“These strong results, which mark our 22nd consecutive quarter of positive comparable restaurant sales, reflect a continuation of our strong operating momentum and the emotional connection we’re fostering with our guests, inspiring them to Live Mediterranean,” Zoes Kitchen CEO Kevin Miles said in a statement.
Based on its Q2 results, the company raised its outlook for the rest of the fiscal year, anticipating restaurant sales between $220 million and $224 million, up from earlier estimates of between $218 million to $223 million. The company also increased its comp-sales expectations to the 5 percent to 6 percent range, up from 4 percent to 6 percent.
“We continue to be excited about the enormous opportunity to strengthen and grow our brand through investments in our people, our differentiated menu, and our operations, as well as through new unit development,” Miles noted.
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