Cosi Same Store Sales Rise by 3.1%; Shares Surge (COSI)

Shares of Cosi Inc. 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.