Upside to $68 per share versus downside to $25 per share over the next three years.
Standing Out From the Crowd
After coming down hard on NDLS, CHUY, PBPB, DFRG and SHAK over the past year, it’s probably apparent that we have a strong bias against “high growth” restaurant companies that have recently come public. Rest assured this bias has not detracted from our research process. In fact, this prior work in the small cap restaurant field has allowed us to identify a company that we believe is distinctly different from the rest – which, if you’re familiar with our work, can only be construed as a good thing.
We like ZOES on the long side for many reasons, including its:
- Superior brand positioning
- Management philosophy and execution
- Unit opening geographic profile
- Early-stage average unit volumes and returns
There is little competition in the Mediterranean category which directly appeals to the health conscious millennial crowd and has the potential to become America’s next big cuisine. Due in large part to a best-in-class management team and operating philosophy, we believe ZOES will be able to grow with minimal roadblocks.
Please join us for 30 minutes on Wednesday as we walk through the intricacies of our call in a detailed Black Book.
