Cosi loss widens on higher costs
August 09, 2007
by Eric Schroeder
DEERFIELD, ILL. — Higher costs for dairy and dairy related products, produce and freight contributed to a loss of $7,400,600 at Cosi, Inc. in the second quarter ended July 2. This compared with a loss of $748,900 in the second quarter of fiscal 2006. The company said it incurred an impairment charge of $2,826,766 during the quarter related to five underperforming restaurants. Net revenues for the quarter totaled $35,850,200, up 12% from $31,968,900 in the second quarter of 2006. Company-owned restaurant sales rose 10%. During the second quarter, Cosi entered an agreement with Macy’s to close the remaining six locations operated inside Macy’s stores. The closings are expected to take place by the end of this month. In May, Cosi revised downward its guidance for the full year, but on Wednesday the company said it would no longer issue or update its annual earnings per share guidance.