Adam Levine-Weinberg

Cosi: Promising Turnaround Opportunity With Significant Upside

Restaurant operator Cosi (NASDAQ:COSI) is positioned in the fast-growing "fast casual" segment of the restaurant industry (~5-6% annual revenue growth, vs. 2% for full service restaurants). Competitors such as Panera Bread (NASDAQ:PNRA) and Chipotle (NYSE:CMG) have found great success here, but Cosi has been consistently unprofitable, as described in the company's most recent 10-K. The company expanded rapidly in the first decade of its existence, but the 2008 financial crisis and recession forced management to retrench. Despite Cosi's disappointing track record, I believe that the company's new management team is putting Cosi on the right path. Financial results are improving, and I expect Cosi to post its first annual profit in 2013. Moreover,...

Join Seeking Alpha PRO to read this archived article and 11,574 other archived articles
IDEA GENERATORXExclusive access to 10 PRO ideas every day
INVESTING IDEAS LIBRARYXExclusive access to PRO library of more than 15,000 ideas
SECTOR EXPERT NETWORKXExclusive access to all sector experts for direct consultation
PERFORMANCE TRACKINGXTrack performance of all PRO stock ideas
PROFESSIONAL TOOLSXProfessional Idea Filters to zero-in based on industry, market cap and more
"In just the first month of using PRO, I used it to generate two ideas which were actionable for me. As a result of these two positions, I have earned more than 20 times the annual subscription costs for PRO."Michael Yagemann, Greenbridge Capital
"I am pleasantly surprised with the scope of small and mid-cap coverage PRO offers. You can't find that any where else."Patrick Rice, Mainstay Capital Management
You may cancel at any time for any reason, and receive a prompt refund for membership on months paid and not used (max. 6 months). Details