William Blair Maintains Outperform on Zoe’s Kitchen As Third Quarter Was Modestly Above Expectations

William Blair analyst Sharon Zackfia maintained an Outperform rating on Zoe’s Kitchen (NYSE:ZOES), following the company’s third quarter results. No price target was provided.

Zackfia commented, “While Zoës is priced at a premium at roughly 32 times our 2015 EBITDA estimate, we continue to view the valuation as acceptable, given our expectation that Zoës will be one of the fastest-growing publicly traded restaurant concepts with the long-term potential to grow the unit base roughly 13-fold. As a result, we expect the rapid cadence of earnings growth to more than offset any potential downward gravitation in valuation metrics over time.”

According to TipRanks.com, which measures analysts’ and bloggers’ success rate based on how their calls perform, analyst Sharon Zackfia has a total average return of 19.1% and a 77.8% success rate. Zackfia has a 16.8% average return when recommending ZOES, and is ranked #295 out of 3377 analysts.

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