Zoe’s Kitchen (NYSE: ZOES) is one of 44 publicly-traded companies in the “Restaurants & Bars” industry, but how does it compare to its rivals? We will compare Zoe’s Kitchen to similar businesses based on the strength of its valuation, profitability, dividends, risk, earnings, analyst recommendations and institutional ownership.

Analyst Recommendations

This is a breakdown of current ratings and target prices for Zoe’s Kitchen and its rivals, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Zoe’s Kitchen 1 6 3 0 2.20
Zoe’s Kitchen Competitors 272 1555 2148 73 2.50

Zoe’s Kitchen currently has a consensus price target of $17.55, suggesting a potential upside of 36.68%. As a group, “Restaurants & Bars” companies have a potential upside of 10.51%. Given Zoe’s Kitchen’s higher possible upside, equities research analysts clearly believe Zoe’s Kitchen is more favorable than its rivals.

Volatility and Risk

Zoe’s Kitchen has a beta of 0.34, indicating that its share price is 66% less volatile than the S&P 500. Comparatively, Zoe’s Kitchen’s rivals have a beta of 0.67, indicating that their average share price is 33% less volatile than the S&P 500.

Profitability

This table compares Zoe’s Kitchen and its rivals’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Zoe’s Kitchen -0.07% -0.27% -0.16%
Zoe’s Kitchen Competitors 1.77% 12.50% 1.76%

Valuation & Earnings

This table compares Zoe’s Kitchen and its rivals top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue EBITDA Price/Earnings Ratio
Zoe’s Kitchen $294.14 million $22.57 million -642.00
Zoe’s Kitchen Competitors $2.04 billion $349.24 million -4.43

Zoe’s Kitchen’s rivals have higher revenue and earnings than Zoe’s Kitchen. Zoe’s Kitchen is trading at a lower price-to-earnings ratio than its rivals, indicating that it is currently more affordable than other companies in its industry.

Institutional and Insider Ownership

69.0% of shares of all “Restaurants & Bars” companies are owned by institutional investors. 3.0% of Zoe’s Kitchen shares are owned by company insiders. Comparatively, 20.6% of shares of all “Restaurants & Bars” companies are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Summary

Zoe’s Kitchen rivals beat Zoe’s Kitchen on 11 of the 12 factors compared.

Zoe’s Kitchen Company Profile

Zoe’s Kitchen, Inc. develops and operates fast-casual restaurants serving a menu of fresh, wholesome, Mediterranean-inspired dishes delivered with Southern hospitality. The Company’s menu offers meals made from scratch using produce, proteins and other ingredients, including its appetizers, soups, salads and kabobs. Its food, including both hot and cold items, is suited for catering to a range of business and social occasions. It caters to a range of dietary needs by offering vegetarian, vegan, gluten-free and its calorie conscious, Simply 500 menu selections. Its party packs serve groups of approximately 10 and are each filled with their own combination of fresh fruits, veggies, proteins and grains. The Company serves dishes for various occasions, such as Guilt-Free Girls Night, Game Day Goodies, Shower Sensations and Kids’ Party Pack. As of December 26, 2016, it had operated 201 Company-owned restaurants and three franchise restaurants in 20 states across the United States.

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