Deerfield, Illinois-based Cosi Inc. (COSI), a premium casual dining restaurant chain, recently reported its first quarter 2011 sales results. Total revenue, which comprises company-operated restaurant sales and franchise fees and royalties, decreased 14.1% year over year to $23.7 million in the quarter. 

This decline was credited to the sale of 13 company-owned restaurants to a franchisee in second quarter 2010. As a result, company-operated restaurant sales tumbled 15.0% to $23.0 million, however, franchise fees and royalty revenues improved 34.4% to $0.7 million.

However, system-wide comparable restaurant sales for the first quarter of 2011 spiked 1.7%, despite inclement weather conditions. The comparable restaurant sales represent a key figure, which measures growth at restaurants in operation for more than 15 months. Cosi has succeeded in increasing its comparable restaurant sales for the fourth consecutive quarter.

The company-owned comparable restaurant sales grew 3.0%, driven by a 1.5% rise in traffic and 1.5% increase in average guest check. However, the same-store sales at franchise operated restaurants inched down 0.5%. Despite lower consumer discretionary spending, Cosi continues to make marketing efforts to expand its customer base and drive traffic by providing catering services for breakfast as well lunch day parts. 

During the fourth quarter of 2010, Cosi posted a 10.2% year-over-year decline in total revenue, as company-owned restaurant sales tumbled 11.1%. However, franchise fees and royalty revenues leaped 36.4%. In the reported quarter, system-wide comparable sales were up 4.5%, driven by a 6.1% rise in company-owned comparable restaurant sales and a 1.8% growth in franchise operated same-store sales. 

Cosi is slated to release its first quarter 2011 results on May 12, 2011. One of Its prime competitors Panera Bread Co. (PNRA) recently posted first quarter 2011 earnings of $1.09 per share, beating the Zacks Consensus Estimate of $1.07 on double-digit growth in the top line.

Cosi currently operates 141 restaurants, of which 82 are company-owned and 59 are franchised. The company operates in 18 states, including the District of Columbia in the U.S. and the United Arab Emirates.

 
COSI INC (COSI): Free Stock Analysis Report
 
PANERA BREAD CO (PNRA): Free Stock Analysis Report
 
Zacks Investment Research