News

Cosi revenue increases while net loss narrows

April 1, 2012

Cosi Inc. has reported a net loss for the fourth quarter ended Jan. 2, 2012, of $2.27 million, or $0.04 per basic and diluted common share, compared with a net loss of $2.78 million, or $0.05 per basic and diluted common share, in the fourth quarter of 2010.

Cosi's total revenues for the 2011 fourth quarter increased 3.3 percent to $26 million, up from $25 million in the 2010 fourth quarter. The 2011 fourth quarter included one extra week of revenue compared to the 2010 fourth quarter.

System-wide same-store sales recorded a 2.6 percent increase for the quarter, driven by a 0.9 percent increase at company-owned locations and a 5.3 percent increase at franchise locations.

For the fiscal year ended Jan. 2, 2012, Cosi reported a net loss of $6.5 million, or $0.13 per basic and diluted common share, compared with fiscal 2010, when Cosi's net loss was $3.1 million. The results for fiscal 2010 included a one-time gain of $5 million related to the sale of 13 company-owned restaurants in Washington, D.C., to a franchisee. Excluding the one-time gain, the net loss for fiscal 2011 improved by $1.7 million as compared to fiscal 2010.

Cosi's total revenues for fiscal 2011 decreased 6.9 percent to $102 million, down from $109 million in fiscal 2010.

Fiscal 2011 included one extra week of revenue compared to fiscal 2010.

System-wide comp sales for fiscal 2011 increased 0.2 percent, driven by a 0.3 percent rise in comps for company-owned locations and a flat-same-store sales based at franchised stores.

"These results for 2011 reflect a continued improvement in operating margins combined with an improving trend in system-wide comparable sales," said Carin Stutz, Cosi's president and CEO. "My confidence to capitalize on unlocking the long term potential of the Cosi brand is now stronger than ever as we now focus on driving sales and traffic while simplifying the guest experience, working to improve our operating margins and examining ways to further reduce administrative costs."

Cosi reported that as of Jan. 2, 2012, the company had cash and cash equivalents of $7.2 million and virtually no debt other than lease obligations.

Cosi ended fiscal 2011 with a total of 136 locations consisting of 80 company-owned locations and 56 franchised locations. During the 2011 fourth quarter, two franchise locations were closed, one in Illinois and one in Massachusetts.