Zoe's Kitchen Q2 restaurant sales $66.2 millionStaff Writer | August 23, 2016
Zoe's Kitchen reported financial results for the second quarter ended July 11, 2016. Restaurant sales were $66.2 million, an increase of 21.7% from Q2 2015.
Good food Total revenue increased 21.7%
Comparable restaurant sales increased 4.0% during the twelve weeks ended July 11, 2016, consisting of a 0.9% increase in transactions and product mix, combined with a 3.1% increase in price.
The comparable restaurant base includes those restaurants open for 18 full periods or longer and included 134 restaurants as of July 11, 2016.
Restaurant contribution increased 23.7% to $14.3 million in the twelve weeks ended July 11, 2016 from $11.6 million in the twelve weeks ended July 13, 2015.
As a percentage of restaurant sales, restaurant contribution margin increased 40 basis points to 21.7% as Zoe's Kitchen continued to benefit from lower commodity prices, which were partially offset by an increase in labor and store operating expenses.
The increase in labor was driven primarily by hourly wage rate inflation and higher employee benefits costs. The increase in store operating expenses was driven by the dilutive effect on margins from our newest restaurants, which, on average, initially operate at less than system-wide average sales volumes.
Net income for the twelve weeks ended July 11, 2016 was $1.2 million, or $0.06 per diluted share, compared to a net income of $0.1 million, or $0.01 per diluted share, for the twelve weeks ended July 13, 2015.
Net income for the twelve weeks ended July 13, 2015 included $0.5 million of executive transition costs.
Adjusted net income was $1.2 million, or $0.06 per diluted share, for the twelve weeks ended July 11, 2016, compared to adjusted net income of $1.0 million or $0.05 per diluted share, for the twelve weeks ended July 13, 2015. ■