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Zoe's Kitchen shares tank after company's quarterly miss, outlook cut

Shares of Zoe's Kitchen Inc. ZOES, -2.89% plunged 20% overdue Thursday after the fast-casual eating place chain posted a larger-than-expected first-quarter loss, neglected quarterly sales expectancies, and reduce its outlook for 2018. Zoe's Kitchen said it lost $three.6 million, or 19 cents a percentage, within the quarter, as opposed to profits of $19,000, breaking even on a per-share foundation, within the year-ago duration. Revenue rose 13% to $102.1 million, the corporate said. Analysts polled through FactSet had expected a loss of one penny in step with percentage on sales of $104.7 million for the quarter. Zoe's blamed its 2.three% same-restaurant sales decrease on weather and calendar shifts as well as much less dine-in traffic. The analysts surveyed through FactSet had expected a 0.5% build up in same-restaurant sales. Zoe's additionally downgraded its outlook for 2018, announcing it expects income between $345 million and $352 million, down from previous expectancies of income between $358 million to $368 million, and same-restaurant sales down 2% to four%, as opposed to expectancies of same-restaurant sales flat to 2% higher for the 12 months. Shares of Zoe's Kitchen ended the common trading day down 2.nine%. "While we are encouraged by results coming from investments in digital, delivery, and menu innovation, it is imperative that we take aggressive actions to re-focus our efforts on building sales and improving financial performance," Chief Executive Kevin Miles said. "To do so, we will slow our future new unit growth and conduct a thorough review of under-performing restaurants. Additionally, we are taking steps to reduce our G&A infrastructure and will re-allocate resources towards marketing and technology initiatives to drive sales," he said in a statement.