ZOES - the next CMG?

[mrmarket]

The healthy Mexican fast food experience took off with CMG...what do you think about the same thing Mediterranean style? I like it!

[tiedyed1]

The healthy Mexican fast food experience took off with CMG...what do you think about the same thing Mediterranean style? I like it!

Could be a good expansion play, but it seems like the menu I pulled up was a combination of healthy common recipes on Pita Bread.
They have a Humus but nothing with Tahini and no Falafel!

More than liking the menu, Management will make or break the success of this one growing profitably.

[mrmarket]

reviews on Yelp have been very good and I think the IPO will fund expansion. Lots of growth potential.

[tiedyed1]

Digging deeper I do like the growth. Has more than 125 locations in 15 states and Zoe's said it's on track to open 29 to 30 restaurants this year and has signed leases for 11 more in 2015.

(There were 16 locations of Chipolte in 1998, and by 2005 there were more than 500. Today over 1600.)

I am not one for trusting Yelp reviews (and know that Yelp manipulates reviews based on advertisers) but I do like the Tripadvisor reviews.

As far as Management, Glassdoor reviews are sketchy and while you need to read between the lines it does reflect there is room for improvement on the local store level.

http://www.glassdoor.com/Reviews/Zoe-s-Kitchen-Reviews-E296231.htm

From a corporate perspective and stock growth though, yes, this one may have strong legs.

Road trip to Marlton, NJ may be in order. (Plus they are opening up a location in Cherry Hill; but nothing in North Jersey, yet!)

Also, did your 1:00 pm post have a Mr. market effect on the stock price? Look at today's chart after 1:00 pm. LOL

[mrmarket]

if they go to 1500 stores, this stock will easily be a 5 bagger

[mrmarket]

Wow....check the title of his article....then check the date. who came up with this idea first????????????????????????

Is This Company The Next Chipotle?

Nov 19 2014

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My co-worker, the legendary Bill Palifka, came up to me today and had some advice for what I should write about next: Zoe’s Kitchen, a Texas-based “fast-causal” restaurant chain that serves kabobs, pitas and other Mediterranean food (full menu here).
“I’d invest in that company,” Bill said, who raved about the food and how he felt like he was getting good food, served quickly, as opposed to the traditional fast food fare. He said he wouldn’t feel guilty taking his son to dinner there, which he said he would if he took him to McDonald’s.
Investors agree. Zoe’s went public earlier this year and raised $87.5 million on its opening day. That’s an impressive figure, considering that’s 25 times the company’s adjusted earnings in the past year, and more than two times their gross annual revenue.
Why?
So why are investors so bullish on Zoe’s? Because they look no further than the company it most-closely resembles, Chipotle (just substitute Mediterranean food for Mexican), which has seen its stocks improve nearly 12-fold since it went public in 2006.
Zoe’s, which has 131 locations in mostly urban locations primarily throughout the south, doesn’t do the same sort of business Chipotle does, even on a per-store basis. The Motley Fool reports that the average Zoe’s does $1.04 million in sales per store annually, as opposed to the $2.07 million Chipotle stores average.
Still, what investors are betting on is not just Zoe’s or Chipotle, but a changing market that’s reflecting the sentiments Bill described. And that is people are moving away from the low-quality food that has marked two generations of fast food, and more towards healthier options with higher-quality ingredients – even if it cost more.
The Market
How big is the market just described? Well, the runaway success of Chipotle alone proves that there is clearly a market for higher-quality fast food, even if it is more expensive.
But it isn’t just Chopotle that’s proving it, as the burger market is moving more towards companies that offer higher-quality burgers, despite their higher cost. Specifically, Five Guys and Shake Shack – two burger joints that fit that description perfectly – are taking market share away from the big guys, i.e. McDonald’s and Burger King.
Look at the numbers. The burger market has contracted by 0.8 percent in America, as more and more people are avoiding unhealthy foods. However, sales at “better burger” restaurants like Five Guys and Shake Shack are growing at a rate of 16 percent annually, leaving less for traditional staples like a Wendy’s.
To compete, many of these traditional fast food companies are offering healthier options and trying to promote the quality of their ingredients. McDonald’s, for example, even hired the two guys from Mythbusters to disprove all the rumors about their food and have run an advertising campaign lauding the quality of their beef.
McDonald’s can try, but fifty years of preconceived notions about microwavable patties and disgruntled workers are hard to break. Meanwhile, new companies with different images serving higher-quality foods are quickly picking up market share.
The Takeaway
So is Zoe’s the next Chipotle? Maybe, maybe not; it is coming to come down to how well they execute and – our favorite point – if they hire the right people.
But if Zoe’s stumbles, there is just too big of an opportunity here for other companies to fill the large and growing desire for high-quality food, served quickly. And, while it might not happen tomorrow, the big boys like Burger King and McDonald’s could be in for some real trouble, sooner than you might think.
About VoiceGlance
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[Phoenix7]

IBD Write up Yesterday should give ZOES a POP today ! Look Here http://news.investors.com/111914-727...lled&ven=yahoo

My Market Trend Signal Program gives ZOES a "0" Strength rating and rates it a "HOLD"

Earnings LOOK GREAT Look below chart http://finviz.com/quote.ashx?t=zoes&ty=c&ta=1&p=d

I will wait to my MTS issues a BUY signal!

[jiesen]

yes, $$MM, people are lazy, and YOU ARE HUUUUUUUUUUUUUUUUUUUGGGGGEEEEEE!!!!!

[tiedyed1]

Just bought some ZOES at $32.68 this morning and will hold long term to watch the expansion.

(It will be slow which is fine as long as they keep the excellent reviews I am reading on Tripadvisor.)

[tiedyed1]

This may help the ZOES momentum : http://www.sciencerecorder.com/news/...tudy-suggests/

[tiedyed1]

ZOES up 5% today on decent volume.

May be a bit premature to make the Top 5, but it was also nice to see the latest Academy Awards Data Dump.

[tiedyed1]

I put this into its (Cramer/CNBC) perspective, but was surprised to see ZOES hit Cramer's radar on CNBC with impressive comments tonight!