For a company that has NEVER generated a profit in many years of operation, it certainly generates enthusiasitc fans. The roadside is littered with concepts that had "good food". The challenge is that their store level economics are bad....so having more sites won't solve that issue. Recently, the P&L is getting better in that the income from operations appears to at least cover G&A. That won't produce a net income (due to Depreciation) but at least it helps the cash burn rate. Not saying this can't turn around but it will be very tough. Their relative small base of stores does not provide them with the ability to do any media that would jump start new products. Looking forward to their call later this week.
Me thinks Wall Street actually is in the wings ready to fire if only they can get a hold on a serious move by Cosi. Small steps forward by Cosi must improve. This Thursday will explain much. I think guidance will convince many of an expanding Cosi.
Ok.. We all know the food is good! Its not the problem.. Its COSI's execution, allways has been and heres why
1. The underlying strategy is not clear. Menu reductions then additions, store concept changing again
2. The plan is overly optimistic. New store concepts and bowls is answer ??
3. No one is accountable for results. 300mil in negative earnings and several CEOs, and same board
4. The plan has not been actively deployed. Is there even a "plan" besides the same one since Hyatt
5. The plan is static .. Nuff said above