Can Zoe's Kitchen And Habit Restaurant Be The Next Chipotle?

The economy is showing signs of growth and one of the sectors getting directly benefited from it is restaurants. Although bigger names like McDonald's Corporation

are faltering, smaller names like Zoe's Kitchen Inc

and Habit Restaurants Inc

are showing strong momentum. Will Slabaugh, Stephens Inc. restaurant analyst, was recently on CNBC to discuss if Zoe's and Habit have the potential to become the next Chipotle Mexican Grill, Inc.

I think both of them actually have a very good opportunity to grow into a long-term success story," Slabaugh said. "Following up Chipotle in terms of being the next Chipotle is I think a very tough, sot of tough bar to set." Zoe's Kitchen He continued, "But in terms of Zoe's you have got 130 units right now. I think, you have got multiple, multiple years in front of you of growing those units at 20 percent plus." "They are really on trend in terms of healthier eating, higher quality food, better customer service, just an overall better experience and have great platform in terms of catering and [off-premises] sales. So, Zoe's I think is very well positioned." Habit Restaurants Slabaugh added, "As far as the Habit goes and they actually report tonight after the close. They are the one, in my opinion, can set up next to any QSR burger chain, they continue to take market share over the next, you name it, number of years. It's a higher quality product in my opinion, better service at a similar price point."