BOSTON, July 06, 2016 (GLOBE NEWSWIRE) -- Così, Inc. (NASDAQ:COSI), the fast casual restaurant company, today reported that estimated system-wide comparable restaurant sales for the 2016 Period 6 and 2016 Quarter 2, as measured for restaurants in operation for more than 15 consecutive months as Company-owned or franchised, recorded an aggregate decrease of 4.5% and 1.6% respectively, as compared to the same periods in 2015.
The breakdown in estimated comparable restaurant sales between Company-owned and franchised restaurants for the 2016 Period 6 and 2016 Quarter 2 are as follows:
| 4 Weeks Ended | 13 Weeks Ended | ||||
| June 27, 2016 | June 27, 2016 | ||||
| 4 Weeks Ended | 13 Weeks Ended | ||||
| June 27, 2016 | June 27, 2016 | ||||
| Hearthstone | 1.9 | % | 2.1 | % | |
Business Update
“It is important to start with this; the magnitude of the second quarter’s comparative sales decline requires management to revise previously communicated guidance. The Company will not reach positive adjusted EBITDA in the 2016 third quarter. The future timing of positive adjusted EBITDA is tied directly to our ability to generate revenue growth,” stated RJ Dourney, President & CEO of Cosi.
“The comparative sales Cosi generated in P6 does not come close to meeting my expectations and is being addressed with intensity,” said Dourney. “Management has implemented a disciplined and multi-faceted plan to move Cosi to a strong revenue growth position. The key areas of focus are outlined below,” Dourney went on to say.
Dourney went on to address the strength of the organization’s foundation, “The management team continues to generate sustained improvements in unit level economics with the appropriate G&A deployment. The team continues to leverage the successful model of our Hearthstone restaurants with discipline and accountability. In addition, the profit-sharing plan launched at the beginning of the year continues to drive the motivation and relentlessness of our restaurant managers. Similarly, we see this sustained positive trajectory in our franchise system, where we continue to see positive results in both sales and profitability. Finally, our focus on our people and their development is fundamental to our perseverance and is an asset to the organization.”
2016 3rd Quarter Initiatives
With regards to the organization’s initiatives to address traffic and sales trends, Dourney shared, “We have launched, and continue to expand, specific initiatives to strengthen guest satisfaction, guest frequency, and trial.”
The Company expects to reverse the quarter’s sales trend through the following initiatives:
Guest satisfaction
Management has tested, and is deploying, a real-time guest satisfaction measurement tool. The results to date highlight the strong correlation between guest satisfaction and traffic increases, and provides clear and actionable information to leverage the strengths, and improve the opportunities, of the system.
Menu reduction
Now deployed in over 50% of the Company-owned units, this new menu provides faster service, makes it easier for the guest to experience Cosi, and improves employee efficiencies. The company expects to have fully implemented the system-wide roll-out by August 30th.
Digital campaign
Having now tested multiple digital campaigns with encouraging results, Cosi is expanding multi-faceted digital campaigns focused on both driving trial of new guests and increasing the frequency of our regulars.
“Each of these initiatives will support both our Company-owned and franchise units. Our commitment to our franchisees’ profitability and success is intense, and we are committed to their success. Building Cosi through franchising is our long-term strategy. Management will further expand on the quarter’s results during the upcoming second quarter earnings call on August 11th,” Dourney concluded.
About Così, Inc.
Così (http://www.getcosi.com) is an international fast casual restaurant company. At the heart of every Cosi® restaurant is an open-flame stone-hearth oven where the Così® signature flatbread is made from scratch throughout the day. The flatbread is made from a generations-old recipe and is part of many Così® favorites. Così® was founded on the idea that good-for-you food should be delicious. Menu items are made using fresh ingredients and distinctive sauces and spreads to create edgy flavors. The menu features made-to-order sandwiches, hand-tossed salads, bowls, breakfast wraps, melts, all natural soups, signature Squagels®, artisan flatbread pizzas, S`mores, snacks and desserts. Guests can also enjoy handcrafted beverages and a variety of coffee-based and specialty beverages.
Così® employees create a welcoming environment where guests are invited to relax and enjoy great food. In many cases, Così® is the cornerstone of the communities that they are in and take pride in supporting community organizations and local charities. There are currently 74 Company-owned and 30 franchise restaurants operating in fifteen states, the District of Columbia, Costa Rica and the United Arab Emirates.
