DF - Today's Research Reports on Stocks to Watch:Zoe's Kitchen and Dean Foods
NEW YORK, NY / ACCESSWIRE / August 20, 2018 / Zoe's Kitchen had postponed its earnings for this past Friday but instead revealed it would be taken private. Shares soared over 30% on the news. Dean Foods Company wasn't as lucky in the trading session, seeing losses of nearly 5% on a downgrade from Goldman Sachs.
RDI Initiates Coverage on:
Zoe's Kitchen, Inc.
https://rdinvesting.com/news/?ticker=ZOES
Dean Foods Company
https://rdinvesting.com/news/?ticker=DF
Zoe's Kitchen, Inc. shares closed up 33.26% on Friday with nearly 12.9 million shares traded. The company, which had pushed back its second-quarter earnings report, revealed last week that it is being taken private. The restaurant chain had been scheduled to report on August 16th but the next day announced it had entered into a definitive agreement to be acquired by the privately-held Cava Group. Zoe's and its 261 locations across 20 states will combine with Cava's 66 Mediterranean-themed "chef-casual" restaurants. The offer at $12.75 a share in cash values the chain at about $300 million. CEO Kevin Miles stated, "Zoës Board of Directors and Management are pleased to announce today's transaction. Our mission was to deliver the highest value obtainable for our shareholders and pursuant to the transaction announced today our shareholders will be receiving a substantial premium to the Company's unaffected stock price. I am proud of the significant work the team has executed over recent years to grow the Zoës Kitchen footprint, build brand affinity and secure a leadership position in the Mediterranean and better-for-you category. These efforts made it an attractive candidate for a transaction of this kind. I'd like to thank each and every team member who will continue to make Zoës a differentiated dining experience every day."
Access RDI's Zoe's Kitchen, Inc. Research Report at:
https://rdinvesting.com/news/?ticker=ZOES
Dean Foods Company shares were down almost 5% at the close on Friday on trading volume nearly three times higher than usual. Goldman Sachs analyst Ken Goldman cut his rating to underweight on shares from neutral, and lowered his price target to $6. The analyst had many reasons for his downgrade which included concerns over higher costs, eroding demand and competition for the company's milk business. Earlier this month the company reported second quarter earnings that beat expectations but also lowered its guidance for the third quarter. The company reported adjusted EPS of 16 cents on revenue of $1.95 billion. Analysts were expecting EPS of 15 cents on revenue of $1.91 billion. The company cut its 2018 adjusted EPS guidance range to 32 cents to 52 cents from 55 cents to 80 cents. During the earnings call, CEO Ralph P. Scozzafava said, "For the quarter, we delivered $35 million of adjusted operating income and $0.16 of adjusted earnings per diluted share, both down versus prior year, driven primarily by lower volume. Our overall volume came in line with our expectations, although with some timing differences on the transition of certain businesses now impacting our forward outlook. In Q2, our supply chain teams delivered significant productivity through our OPEX 2020 program, with a 4.8% improvement in OE, helping to drive conversion costs below year-ago levels for the second quarter in a row. We haven't seen reductions in our conversion cost per gallon in nearly 5 years prior to now."
Access RDI's Dean Foods Company Research Report at:
https://rdinvesting.com/news/?ticker=DF
Our Actionable Research on Zoe's Kitchen, Inc. (NYSE: ZOES) and Dean Foods Company (NYSE: DF) can be downloaded free of charge at Research Driven Investing.
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SOURCE: RDInvesting.com