News

Cosi Inc. reports positive comps growth in Q3 2010

October 20, 2010

Cosi Inc. has reported a systemwide same-store increase of 5.2 percent for the company's third quarter ended Sept. 27. The increase was partially driven by a 6.6 percent comps increase for company-owned locations and a 2.9 percent increase in franchise-owned same-store sales.

Other factors leading to the increase include a 3.7 percent rise in traffic and 2.9 percent increase in average guest check.

"We are pleased with the continued positive trend in system-wide comparable sales we experienced in the third quarter especially given the continued challenging consumer spending environment," said James Hyatt, Cosi's president and CEO. "September marked our seventh consecutive month of system-wide positive comparable sales growth. We believe we continue to benefit from our expanded marketing efforts to broaden our consumer reach and drive traffic in multiple dayparts."

Despite the increases in same-store sales, Cosi's revenue declined 9.7 percent to $27.1 million in the third quarter. According to the company's earnings statement, the decline was caused by the sale of 13 company-owned locations to a franchisee in the 2010 second quarter.

As a result of the sale, company-operated restaurant sales fell 10.8 percent to $26.3 million, while franchise fees and royalty revenues increased 53.5 percent to $0.8 million.

Cosi is slated to release its third quarter 2010 results on Nov. 11. Its prime competitors - Panera Bread Co. and Starbucks Corp. are expected to report on Oct. 27 and Nov. 4, respectively.

Cosi operates 143 restaurants, 84 are company-owned and 59 are franchised.