Cosi, Inc. posted its seventh consecutive quarterly loss in the first quarter, but beat analysts’ estimates by a penny. Still, the loss underlined ongoing concerns about the company’s lack of profitability.
The Deerfield-based fast casual restaurant chain posted a loss of $1.1 million, or 2 cents per diluted share, up 47 percent from a loss of $2.1 million, or 4 cents per diluted share, in the same period a year ago. Total revenues increased 4 percent, or $964,000, to $24.7 million, while company-owned net restaurant sales also increased by 4 percent, or $916,000, to $23.9 million.
The results come in advance of the company’s decision to issue $15 million worth of stock at 65 cents per share later this month. Shares of Cosi ended trading Thursday down 5 cents, or 6 percent, at 78 cents.
Update 5:00pm CST: Analysts met enthusiastic expansionary goals from Cosi management on Thursday’s conference call with a mixture of confused, terse responses, some irritated that the company’s $15 million capital-raise later this month will dilute the the company’s stock price and dampen investor confidence. Analysts seemed unimpressed by Cosi’s goal of being EBITDA profitable in fiscal year 2012. Cosi has never reported annual profits in its nine-year existence.