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...
Only subscribers can access this article, which is part of the PRO research library covering 3,573 different stocks.
Growing numbers of fund managers and other investment professionals subscribe to Seeking Alpha PRO for equity research that is unavailable elsewhere, so they can: