Cosi loses $969,000 in Q2
August 11, 2009
by Eric Schroeder
DEERFIELD, ILL. — Cosi Inc. sustained a loss of $969,000 in the second quarter ended June 29, which compared with a loss of $1,729,000 in the same period a year ago.
Total revenues fell 14% to $31,636,000, which compared with $36,723,000 during the previous year. Cosi said company-owned restaurant sales fell 14% to $31,015,000 from $36,207,000, reflecting a decline in company-owned comparable sales as well as the impact of closing five locations since the end of the second quarter of fiscal 2008.
"The impact of the recession on consumer and business spending has created a difficult environment for Cosi, especially in our catering business given our high density of locations in major metropolitan business areas," said James Hyatt, president and chief executive officer. "We remain intensely focused on working collaboratively with our franchise partners to drive sales and improve operating margins, while remaining diligent about controlling administrative costs."
Cosi noted that recently launched steak gorgonzola sandwiches, steak salads and a lobster salad sandwich and melt offerings have been well received by guests.
In the six months ended June 29, Cosi sustained a loss of $4,295,000, which compared with a loss of $4,757,000 in the same period a year earlier. Sales were $60,302,000, down 14% from $69,914,000.