As reported earlier, Maxim analyst Stephen Anderson downgraded Zoe's Kitchen to Hold from Buy and lowered his price target to $12 from $20. The analyst cites the "sharp" decline in Q1 earnings and a reduction in FY18 guidance while the management acknowledges deeper than expected discounting and competitive off-premise sales while also reconsidering its growth strategy. Anderson adds that future profitability will be weighed down by the required upfront costs, and that it may take "several quarters to recoup improvement in comps. The analyst lowers his FY18 EPS view to (39c) from (3c) and FY19 view to (26c) from (14c).