Zoe's Kitchen Inc. swung to a net loss in the third quarter ended Oct. 5 on special items, but raised its guidance for same-store sales and unit growth for the rest of the year, the company reported Wednesday.
The Plano, Texas-based fast-casual Mediterranean concept reported a net loss of $2.3 million, or 12 cents a share, compared with a profit of $448,000, or 2 cents a share, in the same period last year. The net loss included a $3.1 million provision for income taxes, $300,000 for executive transition costs, and $400,000 of non-cash casualty loss related to Hurricane Joaquin in early October.
Revenue in the quarter increased 29.4 percent, to $56.4 million, from $43.6 million in the prior-year period.
Same-store sales increased 4.5 percent, consisting of a 4.6-percent increase in product mix and a 0.3-percent increase in price, partially offset by a 0.4-percent decrease in traffic.
Kevin Miles, Zoe’s president and CEO, said in a statement: “We opened 10 new company-owned restaurants during the third quarter, bringing our year-to-date openings to 29 new company-owned restaurants.”
The company has opened four additional restaurants in the current fourth quarter, bringing the total, with three franchised units, to 165 locations in 17 states.
Zoe’s said it was increasing its guidance for the rest of the year, raising its forecast for same-store sales growth to between 5.5 percent and 6 percent, an increase from the prior outlook of 5 percent to 6 percent.
The company said its 33 new restaurants opened this fiscal year was at the top of its earlier guidance of 31 to 33 new units.
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