News

Cosi still trying to turn around sales

June 8, 2016

Cosi today reported that estimated system-wide comparable restaurant sales are down, a path the company has been on for the past several periods.

For the 2016 Period 5, as measured for restaurants in operation for more than 15 consecutive months, the company recorded an aggregate decrease of 0.7 percent as compared to the 2015 Period 5. While sales dropped 3.8 percent at company-owned stores, they were up 6.1 percent at franchised locations, according to a company press release. 

Despite the losses, RJ Dourney, Cosi's president and CEO, said he is encouraged by the company’s sustained growth rate in its franchise system, both domestically and internationally.

"Similarly, I am encouraged by the fact that our largest corporate markets continue to outperform the company's average sales growth by a significant margin," he said.  

Although the company units underperformed, Dourney said the chain's  upcoming new menu, the digital media campaign launched over the past 30 days and key strategic initiatives will correct the shortfall.  

"Current sales trends indicate that the digital media campaign is working and is gaining traction. As a result, we expect to expand the campaign across the system during June," he said. "Overall, we continue to be on-track with our four strategic priorities for the year.

"First, we are on track with our cash projections for the quarter and turning EBITDA positive in the third quarter. Second, we are on track to scale our initiatives to drive traffic. Third, we continue to make progress on the franchise growth pipeline. Finally, we continue to improve the strength of our people and culture."