Out Fox The $treet

After slightly weak guidance following the Q2 earnings report, Zoe's Kitchen (ZOES) has absolutely collapsed. The stock is now down from $38 to the $24 range providing a double bottom opportunity. The valuation is reasonable at $475 million with revenues heading towards $333 million next year.  Check out these other research posts: Zoe's Kitchen: Patience Rewards Investors With Dip Opportunity Opportunities In Restaurant Stocks Disclosure: Long ZOES. Please review the disclaimer page for more details. 

Forget the Fed and focus on the companies. both Zoe's Kitchen (ZOES) and Ambarella (AMBA) are on the radar for next week. Zoe's Kitchen has held up well despite the overall weakness in most restaurant stocks and Ambarella needs to show that the company has moved on past the weakness of previous top customer  GoPro (GPRO) . Disclosure: Long ZOES. Please review the disclaimer page for more details. 

Fiesta Restaurant Group produced disappointing Q1 results highlighted my weak guidance. The company is feeling the growing pains of aggressively pushing the Pollo Tropical concept into several new markets from a South Florida base. The stock now trades at an extremely low valuation multiple providing a gift opportunity. The  quarterly results  for  Fiesta Restaurant Group (NASDAQ: FRGI )  were slightly disappointing, but the stock reaction was extreme. The main restaurant concept is moving from clustered in prime South Florida markets to multiple new markets outside of Florida. The shift provides for lumpy results that the market is extrapolating too much as weakness.  Read the f ull article on Seeking Alpha.  Disclosure: Long FRGI, ZOES. Please read the disclaimer page more details.

Habit Restaurants trades toward the lows following market disappointment with comp sales guidance. The company remains a leader in the premium burger category primed for long-term store expansion. The stock is a bargain trading at a discount to other top restaurant chains. After the recent market rebound,  Habit Restaurants (NASDAQ: HABT )  offers one of the few stocks still trading close to the lows. The premium burger chain disappointed the market with discussions on the  earnings call  around promotional activity in the sector and higher labor costs. Read the full article at Seeking Alpha.  Disclosure: No positions mentioned. Please review the disclaimer page for more details.

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.  Read the full articl e on Seeking Alpha.  Disclosure: Long ZOES. Please read the disclaimer page for more details.

Zoe's Kitchen trades back to support near $30 as the stock attracts a lot of shorts and a lethal downgrade. The stock trades at a compelling valuation to the growth rate compared to a peer group. The investment thesis in Zoe's Kitchen is only enhanced by the lack of a compelling reason for the negative thesis on the stock. Suddenly the fast-growing concept of Zoe's Kitchen (NYSE: ZOES ) isn't seeing any love. Short interest is soaring and a negative analyst call sent the stock down to recent lows.          Read the full article on Seeking Alpha.  Disclosure: Long ZOES. Please review the disclaimer page for more details.  Update: Stock provided an incredible buying opportunity hitting a low of $25.86 on Friday. 

Zoe's Kitchen produced a strong Q1'15 earnings beat. The Mediterranean-themed concept remains attractively valued compared to other restaurant peers with similar growth rates. The stock remains too cheap to pass up, especially with a potential breakout above $35. Another solid quarter and Zoe's Kitchen (NYSE: ZOES ) still trades at a discount compared to other fast-casual stocks that are on fire. The Mediterranean-themed concept fails to grab the market's attention in a similar manner as a Shake Shak (NYSE: SHAK ) or a Habit Restaurant (NASDAQ: HABT ), despite similar growth projections. Read the full article at Seeking Alpha. Disclosure: Long ZOES. Please review the disclaimer page for more details. 

Guess this was missed from a few weeks back, but Cramer did an interesting analysis of Zoes Kitchen (ZOES) compared to Chipotle Mexican Grill (CMG) back when it went public. Agree with Cramer that Chipotle will never be matched, but if anybody has a chance of reaching half the size of Chipotle it would be Zoes that grew revenue 54% during Q2. Its worth watching for those interested in the concept. With roughly 130 stores, Zoes has a long runway to hit what is probably a floor of 1,600 units. Disclosure: Long ZOES. Please review the disclaimer page for more details. 

Summary The excitement over El Pollo Loco should point investors back to Zoe's Kitchen. Zoe's Kitchen has very favorable growth numbers. If any stock presents the ability to replicate the growth of Chipotle, it is Zoe's. The surprising success of El Pollo Loco Holdings (NASDAQ: LOCO ) following their IPO last week leaves me wondering why Zoe's Kitchen (NYSE: ZOES ) hasn't seen the same level of excitement. Read the full article at Seeking Alpha. Disclosure: Long ZOES. Please review the disclaimer page for more details. 

The newest entry into our high growth portfolio is the Zoes Kitchen (ZOES) . The recent IPO is a fast casual restaurant concept serving Mediterranean-inspired dishes. The restaurant is riding the fresh food craze with tons of growth remaining. The below chart from the recent presentation highlights how the concept is only getting started: At only roughly 3x sales, Zoes Kitchen is actually one of the best values in the market. Disclosure: Long ZOES. Please review the disclaimer page for more details.