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Cosi (COSI) reported quarterly earnings on November 14, which sent shares down 25% since that time. So the question is: is this a buying opportunity. After reviewing the call, I believe the answer is no.

The company reported negative 3.6% sales comps, broken out between negative 1.9% at franchise stores and negative 4.8% at company-owned stores. Company-owned restaurant comps were comprised of a 6.1% decrease in traffic partially offset by a 1.3% increase in average check. The average check sounds good at first, but management noted that this was a result of the introduction of the company's new bowl meals, which command a higher price but actually have lower margins.

On the margin side, the company...

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