Cosi loss tops $20 million in fiscal 2007

by Eric Schroeder
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DEERFIELD, ILL. — Cosi Inc. sustained a loss of $20,783,500 in the year ended Dec. 31, which compared with a loss of $12,327,600 in fiscal 2006. The loss in 2007 included more than $4 million in losses from impairment provisions, closed store costs and lease termination costs and benefits, partially offset by one-time gains. Total revenue, meanwhile, increased 9% to $134,556,300, which compared with $123,698,500 during the previous year.

During 2007, Cosi opened 28 new restaurants, helping restaurant sales climb to $132,414,000 from $122,849,300 in 2006.

"While the current macroeconomic situation has created a difficult environment in this industry on both the consumer and commodity cost fronts, we are pleased that Cosi is showing resilient traction with our guests, improving operating discipline in our restaurants and making good progress in corporate expense control," said James Hyatt, president and chief executive officer. "Importantly, our franchise partners continue to demonstrate their enthusiasm for Cosi’s concept with initial and follow-on openings, despite the current challenges in the consumer and financing environment."

At the end of 2007, the company had 141 locations with 107 company-owned and 34 franchised, and 10 locations closed during the year.

For the fourth quarter ended Dec. 31, the company sustained a loss of $6,175,500, which compared with a loss of $4,795,000 in the same period a year ago. Revenues rose 8% to $33,149,400, which compared with $30,709,700 during the same period of the previous year.

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