Cosi has really amazing food. The bread is to die for, the salads amazing, the sandwiches out of this world even their coffee is better than Starbucks. the thing is there's only 100 stores not too many know about Cosi but when they do look out. Its all about affordable good food. :)
agree....I highly doubt they will be able to drive traffic hence the incredible challenge they have just getting this thing to breakeven.
how do they increase traffic? it will be very difficult without money to advertise.
agreed....and even if the comps improve, their cost structure at the store level is terrible. Many people focus on G&A but when you look at their historical gross margin, it's really bad. Unless they can (1) raise prices, (2) increase traffic and (3) reduce store costs including COGS, this is a melting ice cube.
as bigshot4par notes, this would be negative rounding error for Yum. Can you imagine the execs sitting around talking about Cosi....a concept that has NEVER made a dime and is a complete disaster at this point. Not gonna happen. I always love reading how folks will post that some big restaurant company should buy Cosi. There is no logical reason any of those larger companies would buy Cosi when there are many other solid concepts to acquire.
You're funny in a naive cute way, Yum is all about major global brands like KFC with 13000+ stores. Same with Pizza Hut and Taco Bell. Yeah sure (sic) they're going to acquire the disaster Cosi with its whopping 100 stores that haven't made a profit in years. Be serious it's all about NOL. Nice try ND.
Why would someone the size of McD buy something as broken, and small, as Cosi? It would be rounding error to McD and not worth their time. McD doesn't need a new concept; they need to find ways to increase the same-store sales of their existing store base...that's what will drive their overall economics.
why would Chipotle want to buy Cosi? The Chipotle model is doing well on its own and they don't need another concept to add to the mix. Plus, I can't fathom why they'd pick Cosi even if they decided to add another concept to their offerings. There are plenty of other concepts out there that have more promise...and better economics...than Cosi.
great way to expand their McCafe by acquiring Cosi they will diversify into healthy fast casual, improve their image and as they mentioned during the conference call MCD could use their NOLS $5-10 easy
Sentiment: Strong Buy
COSI is the perfect acquisition target for MCD. MCD needs a new concept to boost organic growth, while COSI needs capital to jump start its expansion. I wouldn't be surprised to see COSI acquired within the next 6 months or so, probably at $5 a share or higher.
The question is whether or not they can stay afloat longer enough for RJ to dump his stores on Corp in the meantime
Sentiment: Strong Sell