Cosi (COSI) Announces 3.1% Increase in Comps for June
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Cosi, Inc. (Nasdaq: COSI) today reported that system-wide comparable restaurant sales for the 2010 second quarter as measured for restaurants in operation for more than 15 months recorded an aggregate 3.1% increase compared to the second quarter of 2009.
"We are encouraged by the positive trend in system-wide comparable sales we experienced in the second quarter given the continued challenging consumer environment," said James Hyatt, Cosi's President and Chief Executive Officer. "Our Company-owned restaurants finished the quarter strong, achieving a 5.5% increase in comparable sales in the month of June. We believe we are benefiting from our expanded marketing efforts to broaden our consumer reach and drive traffic in multiple dayparts."
Cosi's total revenues for the 2010 second quarter decreased 6.4% to $29,617,000 from $31,637,000 in the 2009 second quarter. Company-owned net restaurant sales declined 7.8% in the quarter to $28,589,000, compared to $31,015,000 in the previous year's quarter due primarily to the sale of thirteen Company-owned restaurants to a franchisee during the second quarter of 2010. Franchise fees and royalty revenues for the quarter contributed $1,028,000 compared to $621,000 in the 2009 second quarter. The increase over last year's second quarter was due primarily to the recognition of fees resulting from a franchisee termination during the second quarter of 2010 as well as the royalties from the thirteen restaurants acquired by a franchisee from the Company during the second quarter of 2010.
Cosi noted that the Company-owned comparable restaurant sales increase for the 2010 second quarter was comprised of a 3.1% increase in traffic and a 0.2% increase in average check.
Company-owned comparable sales are based on sales from restaurants that have been operating as Cosi more than 15 months. Franchise-operated comparable sales are based on sales, as reported by franchisees, from restaurants that have been operating as Cosi more than 15 months.
Franchise-operated and system-wide comparable restaurant sales percentages are non-GAAP measures, which should not be considered in isolation or as a substitute for other measures of performance prepared in accordance with GAAP and may not be comparable to system-wide sales as defined or used by other companies. Cosi does not record franchise-operated sales as revenues. However, Cosi's royalty revenues are calculated based on a percentage of franchise-operated restaurant sales. Management believes franchise-operated and system-wide comparable sales information is useful in assessing consumer acceptance of the Company's brand, facilitates an understanding of financial performance and overall sales trends, helps the Company understand the effectiveness of marketing initiatives, the cost of which our franchisees contribute to based on a percentage of their sales, and provides information that is relevant for comparison within the industry.
"We are encouraged by the positive trend in system-wide comparable sales we experienced in the second quarter given the continued challenging consumer environment," said James Hyatt, Cosi's President and Chief Executive Officer. "Our Company-owned restaurants finished the quarter strong, achieving a 5.5% increase in comparable sales in the month of June. We believe we are benefiting from our expanded marketing efforts to broaden our consumer reach and drive traffic in multiple dayparts."
Cosi's total revenues for the 2010 second quarter decreased 6.4% to $29,617,000 from $31,637,000 in the 2009 second quarter. Company-owned net restaurant sales declined 7.8% in the quarter to $28,589,000, compared to $31,015,000 in the previous year's quarter due primarily to the sale of thirteen Company-owned restaurants to a franchisee during the second quarter of 2010. Franchise fees and royalty revenues for the quarter contributed $1,028,000 compared to $621,000 in the 2009 second quarter. The increase over last year's second quarter was due primarily to the recognition of fees resulting from a franchisee termination during the second quarter of 2010 as well as the royalties from the thirteen restaurants acquired by a franchisee from the Company during the second quarter of 2010.
Cosi noted that the Company-owned comparable restaurant sales increase for the 2010 second quarter was comprised of a 3.1% increase in traffic and a 0.2% increase in average check.
Company-owned comparable sales are based on sales from restaurants that have been operating as Cosi more than 15 months. Franchise-operated comparable sales are based on sales, as reported by franchisees, from restaurants that have been operating as Cosi more than 15 months.
Franchise-operated and system-wide comparable restaurant sales percentages are non-GAAP measures, which should not be considered in isolation or as a substitute for other measures of performance prepared in accordance with GAAP and may not be comparable to system-wide sales as defined or used by other companies. Cosi does not record franchise-operated sales as revenues. However, Cosi's royalty revenues are calculated based on a percentage of franchise-operated restaurant sales. Management believes franchise-operated and system-wide comparable sales information is useful in assessing consumer acceptance of the Company's brand, facilitates an understanding of financial performance and overall sales trends, helps the Company understand the effectiveness of marketing initiatives, the cost of which our franchisees contribute to based on a percentage of their sales, and provides information that is relevant for comparison within the industry.
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