Reported improved sales in updated Chicago store, which is the sole future of Cosi. Store update cost only $40,000 and increased sales and customer throughput. Once good results from this store are implemented throughout the network, we should see positive income. Company is making progress towards break even and position itself for organic growth.
Carin mentioned several continued initiatives to improve customer throughput even further. Also, 2 new stores are coming up. Carin appears to be working on all the right things.
Ignore the rabid haters in this board who are looking to buy your stock for a discount. This is a long term investment not intended for quarter to quarter predators.
Sebastian don't let yourself get fooled. The Street is giving a big thumbs down to the tune of over 15% this AM to COSI. Not surprising that folks are bailing on COSI. COSI is the poster child for what Bad Managers and Incompetent BOD's can do to a good product. Do yourself a favor and find a company that not only has potential but competent management. You won't find it at COSI, I'm sorry to say.
Sebastian, it would have been great for them to have had a solid confrence call but I'm reminded of an old saying "show me, don't tell me". They had another loss....missed profit expectations....and missed revenue expectations. Hence the downward pressure on the stock. Even if they find a new concept that works (can it really be a good thing for a company this old to still be trying to find itself?), will they have the time, and capital, to spread it across the store base. And, will their franchisees pony up their own money to revamp their stores? I hope it works but the odds are against it.
With all do respect im not sure you know whats going on here.
Problem 1 Cosi is going to be delisted at the end of May, less then 3 months . They exhausted all options except the reverse split and after this call it looks like a done deal unless some extra ordinary positive news breaks.
Problem 2 .. $40,000 k on the concept store is still work in progress. Carin could not answer the question asked on just how successfull the results have been in regards to numbers besides im happy. The concept is still being worked on and not a done deal. Remodeling the entire base as of now will cost 5mil with the exception of non company owned you can deduct a mil and a half i guess . Cosi has 15 mil in cash left
Problem 3 Nothing said on the call or done so far would leave me to believe they will be profitable in 2013. In fact mentioned Q1 didnt start well. They burned 1mil in cash Q4 which will increase with additional personal on board now and remodel deployment.
I would seriously call in the question if Cosi has enough cash to sustain continued losses , still unproven store remodels , for more then the next 6 to 8 Qs.