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Cosi, Inc., owner and operator of 88 fast casual restaurants in 11 states and the District of Columbia today reported that revenues for the fourth quarter ended January 3, 2005, were $28.5 million, compared to revenues of $25.1 million in the fourth quarter ended December 29, 2003. At the end of the 2004 fourth quarter, Cosi operated 92 restaurants, compared to 89 at the end of the 2003 fourth quarter. The 2004 fourth quarter included one extra week of sales versus the 2003 fourth quarter.
Cosi has achieved comparable restaurant sales growth for 13 consecutive quarters. Fourth quarter 2004 comparable restaurant sales growth consisted of a 4.3% increase in transaction count compared to the 2003 fourth quarter, and a 3.7% increase in the average check price as a result of a price increase taken in November, as well as favorable menu mix shifts.
For the 2004 fiscal year, Cosi’s revenues were $110.6 million, compared to $107.3 million in fiscal 2003. The Company’s 2004 revenues include 53 weeks of sales versus 2003 sales, which included 52 weeks. Comparable restaurant sales for the 2004 fiscal year, as measured for restaurants in operation for more than 15 months, increased approximately 5.9 percent over the 2003 fiscal year, exceeding Cosi’s guidance of 4 percent to 5 percent. Comparable restaurant sales growth in 2004 consisted of a 3.9 percent increase in transaction count and a 2.0 percent increase in the average check price compared to the 2003 fiscal year.
Cosi also stated that it has reached agreement with two additional area developers under its franchising program for 14 franchised locations, bringing the total number of franchise commitments to 24 as of fiscal year-end 2004. Cosi has now secured agreements with four area developers, and has franchise plans in place for New York, Kentucky, Ohio, Wisconsin, and Florida. As Cosi has stated previously, the Company intends to add approximately 11 Company-owned restaurants and approximately 10 franchised restaurants in 2005. With respect to further development of restaurants within Federated locations, Cosi intends to evaluate the brand and financial performance of the trial restaurants together with Federated during the current quarter and make a determination and announcement concerning plans for 2005 and beyond.
Kevin Armstrong, Cosi’s president and CEO, stated, “We are pleased that throughout 2004, the Cosi brand continued to gain strength in our markets…Under our three-part growth strategy—consisting of company-owned restaurants, franchised restaurants, and partnership restaurants, such as those we have already opened—we expect to grow Cosi significantly this year and in the future.”
Cosi restaurants are all-day cafes that feature signature bread and coffee products including Cosi bagels, sandwiches, salads, soups, and appetizers, Warm n’ Cosi Melts, pizzas, s’mores, and other desserts. Its beverage menu features a full-line of coffee beverages, teas, Arctic smoothies, mochas and lattes, and its signature coffee cocktails.