Please note that we are adding Zoe's Kitchen to Investing Ideas today. We will provide an additional update in this weekend's edition of Investing Ideas.
According to Hedgeye CEO Keith McCullough:
If you have patience in this profession, it's almost uncanny how the things you think you "missed not owning enough of" have a way of mean reverting (correcting).
Last week ZOES announced that CFO Jason Morgan has resigned to pursue other business opportunities. Mr. Morgan has been at ZOES for eight years, this decision reflects his personal career choice and in the coming days and week it will be clear where he is going. Importantly, transition to a new CFO will likely not have a material lasting impact on the company's prospects.
On the contrary, Mr. Morgan is a very talented restaurant executive and is leaving the company in a very strong position with a deep bench of seasoned financial executives. Over the coming months James Besch, current Controller will lead ZOES’ financial team as the company begins a formal search for a new CFO.
OUR LONG TERM VIEW IS UNCHANGED - We view ZOES as one of the best small cap growth names. The company is set-up for long-term success for the following reasons:
- Superior brand positioning
- Management philosophy and execution
- Unit opening geographic profile
- Early-stage average unit volumes and returns
Howard Penney remains The long-term Bull. Buy red,