News

Cosi Inc.'s net loss widens

November 14, 2011

Cosi, Inc. has reported a net loss for the third quarter ended September 26, 2011, of $1.49 million, compared with a net loss of $1 million for the 2010 third quarter.

Cosi's total revenues for the 2011 third quarter were $25 million, a drop from $27 million reported for the same period last year. Since Q3 2010, the company closed six locations, which contributed to a company-owned net restaurant sales loss of $1.8 million for total net sales of $24.46 million, down from $26.3 million in Q3 2010. Cosi also experienced a 3 percent decline in same-store sales for both company-owned and franchise restaurants during the quarter.

Franchise fees and royalty revenues for the quarter contributed $868,000, compared to $782,000 in the 2010 third quarter. The increase over last year's third quarter was due primarily to a franchise fee recognized in the third quarter of 2011 resulting from a cancelled area development agreement.

"Although third quarter results did not meet our expectations, we are encouraged by the improving sales trends we have seen as we've headed into the fourth quarter. Our focus continues to be on driving sales and traffic across all dayparts, improving speed of service and guest satisfaction in every restaurant and remaining committed to controlling restaurant and administrative costs," said Mark Demilio, Cosi's interim CEO and chairman of the Board.

Cosi reported that as of September 26, 2011, it had cash and cash equivalents of $8.1 million and virtually no debt other than lease obligations.

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