Cosi Inc. (COSI, Financial) filed Quarterly Report for the period ended 2009-06-29.
Cos? is a national premium convenience restaurant chain that has developed featured foods built around a secret generations-old recipe for crackly crust flatbread. This artisan bread is freshly baked in front of customers throughout the day in open flame stone hearth ovens prominently located in each of the restaurants. Cos?\'s warm and urbane atmosphere is geared towards its sophisticated upscale urban and suburban guests. There are currently onr hundred eleven company-owned and ninety franchise restaurants in sixteen states and the District of Columbia. The Cos? vision is to become America\'s favorite premium convenience restaurant by providing customers authentic innovative savory food while remaining an affordable luxury. Cosi Inc. has a market cap of $20.07 million; its shares were traded at around $0.4935 with and P/S ratio of 0.15.
Restaurant net sales. Restaurant net sales decreased 14.3%, or approximately $5.2 million, during the second quarter of fiscal 2009 as compared to the second quarter of fiscal 2008. This was due primarily to the decrease of 12.7%, or approximately $4.4 million, in net sales in our comparable restaurant base and $1.2 million of net sales related to Company-owned restaurants closed during and subsequent to the second quarter of fiscal 2008, partially offset by $0.4 million of net sales at new restaurants not yet in their sixteenth month of operation as of June 29, 2009. For comparable restaurants, during the second quarter of fiscal 2009, our average guest check decreased 3.0% and our transaction count decreased 9.7% compared to the second quarter of fiscal 2008.
During the first six months of fiscal 2009, restaurant net sales decreased 13.9%, or approximately $9.5 million, as compared to the first six months of fiscal 2008. This was due primarily to the decrease of 12.1%, or approximately $8.0 million, in net sales in our comparable restaurant base and $2.1 million of net sales related to Company-owned restaurants closed during and subsequent to the second quarter of fiscal 2008, partially offset by $0.6 million of net sales at new restaurants not yet in their sixteenth month of operation as of June 29, 2009. For comparable restaurants, during the first six months of fiscal 2009, our average guest check decreased 2.5% and our transaction count decreased 11.4% compared to the first six months of fiscal 2008.
Franchise fees and royalties. Franchise fees and royalties increased by 20.3%, or approximately $0.1 million, to approximately $0.6 million in the second quarter of fiscal 2009, as compared to the second quarter of fiscal 2008, due primarily to a $0.1 million increase in franchise fees resulting from more store openings and the fees recognized from a canceled area development agreement.
During the first six months of fiscal 2009, franchise fees and royalties decreased by 6.8%, or approximately $0.09 million, as compared to the first six months of fiscal 2008, due primarily to a $0.1 million decrease in franchise fees resulting from fewer store openings partially offset by an increase in royalties.
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Cos? is a national premium convenience restaurant chain that has developed featured foods built around a secret generations-old recipe for crackly crust flatbread. This artisan bread is freshly baked in front of customers throughout the day in open flame stone hearth ovens prominently located in each of the restaurants. Cos?\'s warm and urbane atmosphere is geared towards its sophisticated upscale urban and suburban guests. There are currently onr hundred eleven company-owned and ninety franchise restaurants in sixteen states and the District of Columbia. The Cos? vision is to become America\'s favorite premium convenience restaurant by providing customers authentic innovative savory food while remaining an affordable luxury. Cosi Inc. has a market cap of $20.07 million; its shares were traded at around $0.4935 with and P/S ratio of 0.15.
Highlight of Business Operations:
We are currently eligible to offer franchises in 47 states and the District of Columbia. We offer franchises to area developers and individual franchise operators. The initial franchise fee, payable to us, for both an area developer and an individual franchise operator, is $40,000 for the first restaurant and $35,000 for each additional restaurant.Restaurant net sales. Restaurant net sales decreased 14.3%, or approximately $5.2 million, during the second quarter of fiscal 2009 as compared to the second quarter of fiscal 2008. This was due primarily to the decrease of 12.7%, or approximately $4.4 million, in net sales in our comparable restaurant base and $1.2 million of net sales related to Company-owned restaurants closed during and subsequent to the second quarter of fiscal 2008, partially offset by $0.4 million of net sales at new restaurants not yet in their sixteenth month of operation as of June 29, 2009. For comparable restaurants, during the second quarter of fiscal 2009, our average guest check decreased 3.0% and our transaction count decreased 9.7% compared to the second quarter of fiscal 2008.
During the first six months of fiscal 2009, restaurant net sales decreased 13.9%, or approximately $9.5 million, as compared to the first six months of fiscal 2008. This was due primarily to the decrease of 12.1%, or approximately $8.0 million, in net sales in our comparable restaurant base and $2.1 million of net sales related to Company-owned restaurants closed during and subsequent to the second quarter of fiscal 2008, partially offset by $0.6 million of net sales at new restaurants not yet in their sixteenth month of operation as of June 29, 2009. For comparable restaurants, during the first six months of fiscal 2009, our average guest check decreased 2.5% and our transaction count decreased 11.4% compared to the first six months of fiscal 2008.
Franchise fees and royalties. Franchise fees and royalties increased by 20.3%, or approximately $0.1 million, to approximately $0.6 million in the second quarter of fiscal 2009, as compared to the second quarter of fiscal 2008, due primarily to a $0.1 million increase in franchise fees resulting from more store openings and the fees recognized from a canceled area development agreement.
During the first six months of fiscal 2009, franchise fees and royalties decreased by 6.8%, or approximately $0.09 million, as compared to the first six months of fiscal 2008, due primarily to a $0.1 million decrease in franchise fees resulting from fewer store openings partially offset by an increase in royalties.
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