Declines in same-store sales this year will keep Così Inc. from generating the positive cash flow it had expected by the third quarter, the company said on Thursday.
As a result, CEO R.J. Dourney said in a statement, Così will focus on building sales and cutting costs, and he hinted at a sale of assets.
“While we believe restaurant sales will improve in the third quarter as a result of existing and new operational and marketing initiatives, we do not expect to reach the range required to turn cash flow positive in the third quarter,” Dourney said.
“As a result, we are focused on increasing the depth and scale of our sales-building efforts, implementing further cost reduction initiatives, continue exploring the sale of assets, and pursue initiatives to strengthen the balance sheet.”
Still, the Boston-based fast-casual chain narrowed its net loss in the quarter ended June 27. The company recorded a net loss of $3.1 million, or 7 cents per share, an improvement from the $3.9 million (8 cents) net loss in the quarter a year ago.
The Boston-based fast-casual concept has never generated a profit in its history as a public company, but under Dourney had planned to generate positive cash flow this year.
Yet same-store sales fell 4.5 percent in the quarter ended June 27, the company said. Revenue, meanwhile, decreased to $22.8 million from $24.4 million in the same period a year before.
“While we appreciate that we are operating in a challenging external environment, we are relentlessly focused on increasing guest satisfaction, driving trial and increasing guest frequency, and ultimately improving the disappointing sales in the quarter,” Dourney said.
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