COSI 3Q 2010 Same Store Sales Rise
phx.corporate-ir.net
Cosi, Inc. (NASDAQ: COSI), the premium convenience restaurant company, today reported that system-wide comparable restaurant sales for the 2010 third quarter as measured for restaurants in operation for more than 15 months recorded an aggregate 5.2% increase compared to the third quarter of 2009. The breakdown in comparable sales between Company-owned and franchise-operated restaurants are as follows:
For the 13 weeks ended September 27, 2010
Company-owned ---- 6.6%
Franchise-operated ---- 2.9%
Total System --- 5.2%
"We are pleased with the continued positive trend in system-wide comparable sales we experienced in the third quarter especially given the continued challenging consumer spending environment," said James Hyatt, Cosi's President and Chief Executive Officer. "September marked our seventh consecutive month of system-wide positive comparable sales growth. We believe we continue to benefit from our expanded marketing efforts to broaden our consumer reach and drive traffic in multiple dayparts."
Company-owned net restaurant sales were $26,341,000 for the third quarter compared to $29,528,000 for the 2009 third quarter with the resulting $3,187,000 decline related 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 $775,000 compared to $505,000 in the 2009 third quarter. The increase over last year's third quarter was due primarily to royalties from the thirteen restaurants acquired by a franchisee from the Company during the second quarter of 2010. Cosi's total revenues for the 2010 third quarter decreased by $2,917,000 to $27,116,000 from $30,033,000 in the 2009 third quarter largely as a result of the sale of the thirteen company-owned restaurants to a franchisee.
Cosi noted that the Company-owned comparable restaurant sales increase for the 2010 third quarter was comprised of a 3.7% increase in traffic and a 2.9% increase in average check.
Company-owned comparable sales are based on sales from restaurants that have been operating as Cosi for more than 15 months. Franchise-operated comparable sales are based on sales, as reported by franchisees, from restaurants that have been operating as Cosi for 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. |
