Così (COSI) Sept. Comps Fell 3.6%; Q3 Comps Edged 0.3% Lower

Così (NASDAQ: COSI) reported that estimated system-wide comparable restaurant sales for the third quarter of 2015, as measured for restaurants in operation for more than 15 months, recorded an aggregate decline of -0.3% as compared to the third quarter of 2014.

The breakdown in estimated comparable restaurant sales between Company-owned and franchise-owned restaurants for the third quarter of 2015 is as follows:

*Does not include Hearthstone locations. Comparable locations are defined as restaurants in operation for more than 15 months as Company-owned locations.

Comparable restaurant sales for the third quarter of 2015 as compared to the third quarter of 2014 were distorted by certain non-recurring events, including:

• The impact to the 4 Weeks Ended September 28, 2015, resulting from the year over year shift of the Labor Day holiday, on comparable restaurant sales of Company-owned and franchise restaurants has been estimated to be -2.3% and -1.7%, respectively.
• Business interruptions resulting from the Pope’s visit on September 22–26, 2015 negatively impacted 30% of our Company-owned restaurants. The estimated impact to the 4 Weeks Ended September 28, 2015, and the 13 Weeks Ended September 28, 2015, on comparable restaurant sales of Company-owned locations has been estimated to be -0.9% and -0.3%, respectively.
• Termination of a Franchise Agreement resulted in the closure of two franchise locations in California prior to the end of the 2015 third quarter. The estimated impact to the 13 Weeks Ended September 28, 2015, on comparable restaurant sales of franchise locations has been estimated to be -0.7%. These restaurants have been excluded from the Period 9 2014 and 2015 comparable restaurants base.

“I continue to be encouraged by the progress we are seeing in restaurants where the Hearthstone Model has been fully implemented. While I am disappointed in the overall sales results this quarter, I am confident about the momentum I continue to see,” stated RJ Dourney, Cosi’s President and CEO. "We continue to receive positive feedback from our guests in these markets, and we are ready to invite our guests back while we continue to layer all the levers of our strategy throughout the rest of the system,” Dourney went on to say. Dourney then addressed the franchisee system, stating “One of our priorities is to ensure that our franchise restaurants uphold the integrity of our brand and are profitable. We are prepared to make tough calls when necessary, as we continue welcoming new franchise partners into the system. I am also excited at the continued growth of our existing franchise system and the opening of our new franchise restaurant in the DC area.”

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