News

Cosi reports Q2 net loss

August 14, 2011

Cosi Inc. has reported a net loss for the second quarter ended June 27, of $634,000, compared with a net loss of $1.3 million for the 2010 second quarter. The decrease in net loss for the quarter was based on a gain of $5.1 million related to the sale of 13 company-owned restaurants in Washington, D.C., to a franchisee.

Same-store sales increased 0.5 percent for company-owned restaurants during the second quarter. Comps decreased 1.3 percent for franchise-operated restaurants. System-wide, same-store sales decreased 0.2 percent.

Cosi's total revenues for the 2011 second quarter decreased to $26.8 million, down from $29.6 million in the 2010 second quarter. Franchise fees and royalty revenues for the quarter contributed $784,000 to the company's earnings, compared to $1 million in the 2010 second quarter. The decrease from last year's second quarter was due primarily to a franchise fee recognized in the second quarter of 2010 resulting from a cancelled area development agreement.

Cosi reported that as of June 27, it had cash and cash equivalents of $8,300,000 and virtually no debt other than lease obligations.

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