Best New Stocks of Q2 – #1, Zoe’s Kitchen (ZOES)
The quarter saw just one restaurant offering.
Apparently, that’s all we needed.
Zoe’s Kitchen (ZOES), which was founded in 1995, is a fast-casual restaurant with a Mediterranean theme (“zoë” means “life” in Greek). The menu mostly offers dishes that are made from scratch and that are preservative- and additive-free. Zoe’s average per-customer spend is $9.57.
The returns are unsurprising given the breakneck growth Zoe’s has experienced so far. In Q1 alone, revenues surged more than 47% to $46.3 million, comparable restaurant sales increased by 5.7%, and the company even managed to post $3.8 million in adjusted EBITDA.
Tom Taulli runs the InvestorPlace blog IPO Playbook. He is also the author of High-Profit IPO Strategies, All About Commodities and All About Short Selling. Follow him on Twitter at @ttaulli. As of this writing, he did not hold a position in any of the aforementioned securities.