Zoe's Kitchen: Shorts Try Too Hard
Zoe's Kitchen surged after easily surpassing Q4 targets.
The Mediterranean-inspired concept remains a long-term growth story that attracts a lot of shorts for the wrong reasons.
My recommendation is to not chase the stock, which is already trading up at $36.
Despite consistently strong numbers and a reasonable valuation, Zoe's Kitchen (NYSE:ZOES)attracts a high number of shorts. The short theories including this latest one always claim margins are too low or the comp sales aren't high enough while ignoring the prime reason for any short falls.
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Disclosure: Long ZOES. Please read the disclaimer page for more details.