the cosi competition is MASSIVE..and every two-bit competitor is TWO STEPS ahead of cosi.. that's how sad it is. you have Panera, five guys, firehouse subs, in out burger, red robin, sonic , dominos, subway, chipotle, moes, smashburger, fudruckers, potbelly, bjs, kona grill, applebees, tgi's , macaroni grill, chilis, qdoba, saladworks, Wendy's , arbys, heck I could build a sub shack and get half of cosi's traffic
agreed....at the end of the last fiscal year, they had $52 million in remaining lease obligations and all the debt comes due in 2017 I believe. They'll burn probably half the cash they had on the books at the end of the March quarter. I don't see how they get through the next 12 months without filing.
might be more than $5 mill loss.. And from what I can tell the large lease commitments don't start to go down until 2017. Sales are not turning... The problems remain under hotshot RJ---service too slow, no drive thru, no consistency in food, massive competition around cosi locations.. heck there's only so many sandwich shops that can saturate a city or town. And with poor cosi service/experience, they won't return to this. Folks will even choose a pink slime burger over cosi. it's just that bad.
This applies to 1700 Market Location.
I ordered a Chicken Margherita Pizza on line to save time.
When I got back to my office, I opened the box, to find that they forgot the CHICKEN.
Very disappointed. Cold Pizza without the Chicken,
A slight step up from 7-11 food. Coffee that won't make you vom...at the very least, it's clean. This is for all Cosis...not just the one on walnut
Btw, this is the dumbest name for a sandwich shop I've ever heard.
restuarant scale 1-5? 1.
Cockroach scale 1-5? 5.
Used the bathroom and I look up and there is a bleepin' cockroach flipped over on its back ALIVE. I mean honestly? You passed health inspection with that thing? I blame the FDA, the senator, the government, Obama, and most importantly George bush. I bet if Romney was in office cockroaches wouldn't exist.
HAS RJ ADDRESSED THE COCKROACH ISSUE AFTER A YEAR?
Sentiment: Strong Sell
bankruptcy is coming soon unless more fools show up to buy stock offerings. It's obviously bad news that Lloyd miller is dumping shares. he knows the company is a massive train wreck. heck it's always been a joke company. The balance sheet shows $300,000,000 accumulated DEFICIT. I wonder how much of that deficit paid off executive homes and mercedes?
cosi is nothing more than an executive retirement sled.
selling will ramp up now.. anyone who is still holding rights shares will accelerate the dumping.. RJ has been a complete failure.. I told he was garbage a year ago... you morons didn't listen
I estimate. He has produced nothing except all-time high operating losses. Now that he has merged in his huge debts, there is little motivation for him to continue this charade. He will gleefully "resign" with exit bonus in hand... lol
Hey Meatball sub, lets do something you go short and I go long and in 3 Months we will post to see ho made money. Long at 1.71
Hey busted1964, here are some facts for you. Cosi didn't make a profit for yet another quarter, their business model continues to fail terribly, and they regularly raise capital only blow through it keeping the business on life-support, Their stores are old, service absolutely stinks and the food is over priced vs. the competition. Need more? How about their current CEO has no clue how to fix it. I wouldn't say he's stupid, 'cause the guy unloaded millions of his Hearthstone debt on to Cosi shareholders........with or without a meatball sub being on the menu.
Sentiment: Strong Sell
I do not mind your stupid posts. I use them for Laughter.
Cosi does not offer a meatball sub for your info.
Please get your facts straight.
The restaurant boom of 2010 thru 2014 has created a glut of food joints... it is HYPER COMPETITIVE out there.. and cosi is simply ill-equipped to deal with such stiff competition. Cosi does not have drive thrus, cosi employees are mostly lazy and incompetent. Most folks want to grab their sandwich and head out the door, they simply refuse to wait 15 minutes for a cosi meatball sub. Even though the quality of fast food is not good, customers will go there simply because of the speed.
Cosi cannot get rid of the leases and the labor/service and food is horrific. Even during the GREAT RESTAURANT BOOM of 2010 thru 2014, cosi struggled horribly ... how bad is that? It's amazing how the SEC does not shut this down and put executives in jail. A coffee and bread shop loses millions every year for over 12 years? really? This should have gone bankrupt 7 years ago. The whole concept and structure is corrupt /inept and just plain awful. and yet they have found suckers to invest $150 millions is this cripe.
I'm not a short. I actually made a few lucky bucks awhile back trading the volatility as a long investor and follow it out of curiosity. Just 'food' for thought for retail investors like me who want to get a return on our hard earned money. If it doubles or triples glad to see it. History is really questionable.
Cosi has been publicly traded for 12 years and not once has it turned a profit. "Well," I thought, "sometimes earnings can be misleading, and the company could be bringing in lots of free cash flow that, for some reason, isn't making onto the income statement."
But then I went ahead and checked the free cash flow -- the second tab -- and was astounded with what I found. As a public company, Cosi has burned through an amazing $144 million and has just about nothing to show for it. Even in 2010, the only year where I calculated the company as having positive free cash flow, it was the result of a $6.4 million cash influx from selling some of their locations.
You may ask how in the world can a company stay solvent with a business model like this. The answer: share dilution. What was once a company with 1.4 million shares outstanding is now an entity with over 18 million shares outstanding. That means your right to the company's (non-existent) cash flows has decreased by over 90% in the past 12 years.
NEW YORK--(BUSINESS WIRE)--April 1, 2003--The Board of Directors of New York-based restaurant company Cosi, Inc. (NASDAQ: COSI) announced today initiatives designed to improve the Company's financial performance, enhance liquidity and strengthen management.
Cosi announced that it intends to initiate a $12 million rights offering and has obtained a $3 million interim secured loan from First Republic Bank, guaranteed by several of the Company's major shareholders. Cosi also announced management changes including William D. Forrest's election as Chairman of the Company and the departure of COO Nick Marsh. Mr. Forrest replaces Eric Gleacher, Chairman and CEO of investment bank Gleacher Partners, who will remain a Director. Jay Wainwright will remain as interim CEO until a permanent CEO is hired. Commenting on the changes, Mr. Forrest said, "I'd like to recognize Jay and Nick for their accomplishment in creating what I believe is an enduring and distinctive brand. I look forward to their involvement as we transition the leadership of Cosi."
“We are making these changes as our business is gaining momentum, with comparable store sales increasing approximately 5% in the first quarter and approximately double that in March now that we have lapped last year's price decrease”
Cosi announced previously that it was closely monitoring the performance of its stores and pursuing a franchise and area developer program designed to maximize the market potential of the Cosi brand. Subsequently, the Board of Directors has concluded that the Company's financial performance would be strengthened by closing in an orderly fashion as many as 13 of the Company's restaurants, three of which have already been closed. "We are making these changes as our business is gaining momentum, with comparable store sales increasing approximately 5% in the first quarter and approximately double that in March now that we have lapped last year's price decrease," commented Mr. Forrest.
Cosi anticipates that
Highly unlikely given the sales trends and the poor margins they've had. They've consistently lost $4MM and, depending on what they do to manage working capital, that has translated into a bunch of cash being burned.
While I don't like saying this, I suspect this will be filing for Chapter 11 protection at the end of this year unless they have another injection of financing. They have $13MM in cash now and, at recent burn rates, that won't last much longer. Maybe his efforts to turn around sales will kick in but a lot of positive things would have to happen on the cost side for those incremental sales to turn this cash positive. Time will tell.
No wonder RJ couldn't wait to merge in his toxic company... even states that Hearthstone folks have priorit over every other stockholder..... This is end very badly very soon....
We will have to fulfill the debt obligations of the Hearthstone Entities and R.J. Dourney. Our failure to meet our debt service obligations could have a material adverse effect on our business, financial condition and results of operations.
As previously disclosed in our filings with the SEC, we incurred a substantial amount of indebtedness in connection with completing the Hearthstone Merger (the “ Hearthstone Indebtedness ”) and, as a result, the Hearthstone Merger increased our outstanding indebtedness. The aggregate of the Hearthstone Indebtedness outstanding as of April 1, 2015, upon completion of the Hearthstone Merger, was approximately $10.8 million, of which approximately $5.6 million was paid shortly following the closing the Hearthstone Merger. Our increased indebtedness following completion of the Hearthstone Merger could adversely affect our operations and liquidity. Our level of indebtedness could, among other things:
• make it more difficult for us to pay or refinance our debts as they become due during adverse economic and industry conditions because we may not have sufficient cash flows to make our scheduled debt payments;
• cause us to use a larger portion of our cash flow to fund interest and principal payments, reducing the availability of cash to fund our working capital, capital expenditures, research and development and other business activities;
• cause us to be less able to take advantage of significant business opportunities, such as acquisition opportunities, and to react to changes in market or industry conditions;
• cause us to be more vulnerable to general adverse economic and industry conditions;
• decrease our profitability and/or cash flow;
• cause us to be disadvantaged compared to our competitors with less leverage; and
• limit our ability to borrow additional monies in the future to fund our working capital, capital expenditures, research and development and other general corporate purposes.
In addition, the terms of the Hearthstone Indebtedness may restrict certain actions by us and our subsidiaries, including financial, affirmative and negative covenants, including limitations on our ability to incur indebtedness, create liens, and merge, amalgamate and consolidate with other companies.
A portion of the Hearthstone Indebtedness that we assumed will bear interest at variable rates that are linked to changing market interest rates. As a result, an increase in market interest rates would increase our interest exposure and our debt service obligations.
All of our debt obligations, and any indebtedness incurred in connection with the Hearthstone Merger, will have priority over our common stock with respect to payment in the event of a liquidation, dissolution or winding up of our company.
In any liquidation, dissolution or winding up of our company, our common stock would rank below all debt claims against us, including claims in connection with the indebtedness under the Senior Secured Promissory Note issued by the Company to Milfam II L.P. in April 2014 and the Senior Secured Promissory Notes issued by the Company to AB Opportunity Fund LLC and AB Value Partners, L. P. in May 2014, and the Hearthstone Indebtedness acquired in the Hearthstone Merger. As a result, holders of our common stock will not be entitled to receive any payment or other distribution of assets upon the liquidation or dissolution until after our obligations to our debt holders and holders of equity securities that rank senior to our common stock have been satisfied.
TABLE OF CONTENTS
The issuance of shares of our common stock in connection with the Hearthstone Merger resulted in the dilution of our equity.
Upon completion of the Hearthstone Merger on April 1, 2015, we issued 1,790,993 shares of common stock as consideration for the Hearthstone Merger, which diluted the equity interests of the holders of our common stock.
We may be subject to liabilities of the Hearthstone Entities that are unknown to us, which may have a material adverse effect on our profitability, financial condition and results of operations and which may result in a decline in the market value of our common stock.
We may be subject to liabilities of the Hearthstone Entities unknown us, which may have a material adverse effect on our business, financial condition and results of operations and the market value of our common stock after the consummation of the Hearthstone Merger.
Sentiment: Strong Sell