Cosi Same Store Sales Rise by 3.1%; Shares Surge (COSI)
Shares of Cosi Inc. (NASDAQ: COSI) rocketed higher in the after-hours after the company said that its Q2 same-store/restaurant-sales increased by 3.1%; the company also reported that Q2 revenues came in at $29.6 million. While revenues did post a decline year-over-year, this was primarily due to the recognition of fees resulting from a franchisee termination during the second quarter of 2010, as well as the royalties from the thirteen restaurants acquired by a franchisee from the company.
Cosi management also reported that average check prices rose by 0.2%.
"We are encouraged by the positive trend in system-wide comparable sales we experienced in the second quarter given the continued challenging consumer environment," said James Hyatt, Cosi's President and Chief Executive Officer.
He also added, "Our Company-owned restaurants finished the quarter strong, achieving a 5.5% increase in comparable sales in the month of June. We believe we are benefiting from our expanded marketing efforts to broaden our consumer reach and drive traffic in multiple day-parts."
Cosi has been attempting to turn its business around for the past two years and it appears that the company is delivering real results. This is a strong story; traders should consider buying the stock right here and now.
Shares of Cosi Inc. were higher by 10.00% in the after-hours, trading at $0.77.
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