It’s safe to say that a lot of people were happy about His Holiness Pope Francis’ recent visit to the United States. In fact, some people may have even felt touched by his visits to New York City, Philadelphia and Washington D.C. If you ask Cosi, though, they would probably say that the recent visit of His Holiness was not exactly a good thing. After all, its sales went down.
Cosi, Inc. has recently announced that its restaurant sales for the third quarter are down, whether it be for most of September or during the last 13 weeks. During the last four weeks that ended last September 28, the company suffered a 4.5% decline in sales among its company’s owned restaurants, with the exception of the those in Hearthstone. Meanwhile, Cosi’s franchised restaurants experienced a 1.7% in sales. In sum, the company suffered a system wide sales loss of about 3.6%.
Cosi had said that the Pope’s visit from September 22 to 26 actually resulted in “business interruptions” for its restaurants. In fact, the company believes the said visit actually impacted company-owned restaurants by as much as 30%. Meanwhile, the dip in sales may also have been caused by the closure of two of the company’s franchise locations in California due to the termination of franchise agreements.
Nonetheless, Cosi President and Chief Executive Officer RJ Dourney has said that he is “confident about the momentum I continue to see.” The company has been steadily adopting the Hearthstone Model throughout its locations and Dourney believes this will be just the strategy the company needs to get out of its current sales slump.
Cosi’s stock is currently down by 16.82% and is at $0.89.