Investing.com -- Shares in Zoes Kitchen (NYSE:ZOES) surged more than 4% in after-hours trading after the Plano, Texas-based, Mediterranean-inspired casual restaurant reported strong earnings for the first quarter on Thursday.
The opening of 12 new company-owned restaurants, as well as a 7.7% spike in comparative restaurant sales helped Zoës Kitchen boost revenues by 36% on the quarter to $63 million.
"Our first quarter results reflect sustained operating momentum driven by the appeal of our lifestyle brand and commitment to operational excellence," Zoës Kitchen CEO Kevin Miles said in a statement. "Zoës is a differentiated concept offering wholesome, freshly prepared Mediterranean dishes with Southern hospitality, appealing to guests across the country and inspiring them to Live Mediterranean."
Zoës also increased adjusted EBITDA by more than 76% to $6.8 million on the quarter, as net income increased by 0.7 million or 0.04 earnings per diluted share. By comparison, Zoës reported a loss of $10 million or 0.76 per diluted share in earnings last year during the same quarter.
Zoës has recently expanded its menu of preservative free choices with the addition of entrees with more lean proteins that are predominantly additive free. The company has also lowered ingredient costs with new pricing agreements for feta cheese, olive oil and other produce. By year's end, Zoës expects to open "31 to 33 new restaurants," as part of its plan to operate 1,600 restaurants in the U.S. on a long-term basis.
Shares in Zoës gained 1.31 or 4.03% in after-hours trading.