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Cosi Inc. Message Board

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  • golfer18us golfer18us Jul 23, 2011 10:51 AM Flag

    2nd quarter is laughable

    Once again, this concept fortunately has no significant long term debt (other than the $52MM in lease liability)! Looking forward to the full Q2 report. If the cash burn is similar to past quarters, they've got about 2 years of cash left. Of course, they could continue to refranchise but that's not a long term solution. Store count continues to drop (down 5 sites quarter-over-quarter) and comp store declines on the increasingly important franchised stores. More importantly, customers are voting with their feet as traffic was down again. Living on price increases is a slippery slope.

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    • Just throwing in my two cents...June sales were disappointing considering April but the May slowdown continued.

      I think the guys who point to "an event" that we cant predict are spot on. Which is why if you want to own this is either a speculative hold or you buy on disappointment and capitulation. Why couldnt CMG buy these guys? It's something like this that I cant predict.

      Five Guys is good. But the costs of opening one of those cant be to great and I bet the leases are shorter term.

      Hyatt does own stock, he bought in the rights offering.

      I will probably add if we get low .80 or .70's. I stopped out half but I am going to hold the rest here.

      • 2 Replies to imd85
      • I'm not sure why any successful chain (such as CMG) would acquire Cosi. It's not like it's been a solid concept that's been growth constrained due to capital that a new owner could solve. Why would CMG need Cosi? I don't think they need their real estate and they haven't exhibited a desire to franchise (and Cosi has been doing so). By now, with all the money sloshing around PE firms, if someone hasn't made a pass at this yet, it's because this is a dud.

      • It might be tempting to gamble a little just before Aug 11th if we continue down till then and hope that Hyatt has something to say about serious growth plans. Big gamble but he did suggest last year he might have something to say after 2nd quarter. The risk I guess is that he says nothing at all and they report another million plus loss and it looks like they continue to not have any future other than dilution of stock or worse.

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