This Day On The Street
Continue to site right-arrow
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
TheStreet Open House

Cosi, Inc.'s CEO Discusses Q2 2012 Results - Earnings Call Transcript.

In order to supplement the work that we're doing, we've contracted Chef Charlie Baggs, a local Chicago culinary consultant and his team to help us with future menu innovations. As we've communicated on our last call, we've completed a 15% menu reduction. It is always a risk to make changes but often more of a risk to have a menu that you can't deliver well. These changes are setting us up to be stronger operationally for the long term and most importantly to increase guest satisfaction and guest count. We also introduced new menu boards that are cleaner, less cluttered, more contemporary and much easier to read.

Our second initiative was to further improve the guest experience with throughput initiatives and operations simplifications. We've completed several of the initiatives from optimizing our kitchen equipment for improved quality and reduced cooking time to upgrading our POS configurations to simplify and shorten the order entry process. Early results indicated an immediate improvement of 10 to 15 seconds per guests.

Now for the balance of the year, we're testing pagers to alert guests when their food is ready and we are in the process of completing the conversion of 10 more of our restaurants to the pay first model. This is what takes away the major confusion of how to use Cosi. All of these actions combined are improving the ambiance in our restaurants, further increasing our speed of service and reducing labor costs.

Our third initiative is controlling costs and it's also progressing. Our improved performance is coming from managing cost of goods in a difficult commodity environment, restaurant labor productivity with our guest satisfaction on the rise and continued reductions in G&A. And we have taken a modest price increase of 1% for the year.

For the results of these initiatives, in the second quarter Cosi achieved a profit and was cash flow positive. Yes, that's correct. Cosi achieved a profitable quarter after six months with this new leadership team. The Company earned $77,000 which is our first step in getting the core profitable and establishing a solid foundation for future growth in the business.

Read the rest of this transcript for free on seekingalpha.com

3 of 3

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Try it NOW
Only $9.95
Try it NOW
14-Days Free
Try it NOW

Check Out Our Best Services for Investors

Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
Try it NOW
Try it NOW
Try it NOW
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
SYM TRADE IT LAST %CHG

Markets

DOW 17,976.31 +263.65 1.49%
S&P 500 2,086.24 +25.22 1.22%
NASDAQ 4,947.4410 +56.2220 1.15%

Partners Compare Online Brokers

Free Reports

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs