Zoe's Kitchen Partners Yext For Digital Knowledge Management

Zoe's Kitchen, Inc. (NYSE:ZOES) has partnered with Yext, Inc. (NYSE:YEXT) — a pioneer in digital knowledge management — to manage and update its restaurant information in real time across the web.

This partnership thus allows the company to provide guests with details about its brand in intelligent services like Google (NASDAQ:GOOGL), Apple (NASDAQ:AAPL), Facebook (NASDAQ:FB), Bing, Yahoo (NASDAQ:AABA) as well as several maps, apps, search engines, GPS systems and social networks in the Yext PowerListings Network.

Rationale Behind

As consumers increasingly locate and engage with restaurants through intelligent digital services, the food service industry is changing swiftly.

Given the plethora of information, consumers now make more decisions on the go. In fact, per Google, 60% of millennials wait to seek out a restaurant until within an hour of going.

This AI-first digital landscape thus makes comprehensive digital approach essential to attract and retain customers and restaurant chains, which control search results with structured data, attain a vital advantage. Zoe’s Kitchen aims to gain competitive edge via investing in digital knowledge management as well.

Meanwhile, this fast casual restaurant that specializes in Mediterranean cuisine continues to expand its footprint across the country and targets 400 locations by 2020, given increasing demand for its food.

However, such expansion brings new challenges for the company in terms of connecting with guests on all the digital platforms and in new markets. Zoe’s Kitchen hence aims to leverage from this recently announced partnership with Yext and effectively expand as well as support its growth via a powerful and reliable brand experience across the web.

Bottom Line

In order to keep up with the digital wave in the U.S. restaurant space, many restaurants are adopting advanced technology to provide greater consumer satisfaction.

Zoe’s Kitchen too makes extensive investments in technology to boost in-store operational capabilities and, in turn, provide a superior guest experience. The company’s recently re-platformed website and scheduled launch of its mobile app and loyalty programs by the end of fiscal third quarter is likely to further add to its digital capabilities.

Meanwhile, shares of Zoe’s Kitchen have gained 15.8% in the last month, outperforming 0.2% growth of the industry it belongs to.

Going forward, we expect this Zacks Rank #3 (Hold) company’s partnership with Yext to increase foot traffic, given enhanced convenience and in turn, boost comps and overall performance.

Stocks to Consider

Better-ranked stocks in this sector include Papa John's International, Inc. (NASDAQ:PZZA) and Del Taco Restaurants, Inc. (NASDAQ:TACO) holding a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

In the trailing four quarters, Papa John's and Del Taco pulled off an average positive earnings surprise of 5.10% and 3.61%, respectively.

One Simple Trading Idea

Since 1988, the Zacks system has more than doubled the S&P 500 with an average gain of +25% per year. With compounding, rebalancing, and exclusive of fees, it can turn thousands into millions of dollars.

This proven stock-picking system is grounded on a single big idea that can be fortune shaping and life changing. You can apply it to your portfolio starting today.

Learn more >>