DEERFIELD, Ill.—Sandwich chain Cosi Inc. said Thursday its loss narrowed in its first quarter due to a rise in both restaurant sales and franchise fees and royalties.
For the quarter ended March 31, the company reported a loss of $3 million, or 8 cents per share, compared with a loss of $4.2 million, or 11 cents per share in the prior-year quarter.
Excluding discontinued operations, the company said it had a loss of 7 cents per share.
Analysts polled by Thomson Financial expected a per-share loss of 8 cents.
Revenue rose 7 percent to $33.2 million from $31.1 million in the first quarter of 2007. Analysts predicted revenue of $32.4 million.
Restaurant sales -- which make up the bulk of the company's revenue -- jumped 6 percent while franchise fees and royalties rose 69 percent.
Same-store sales, or sales at stores open at least a year, were flat at company-owned locations. Same-store sales is a key indicator of retailer performance since it measures growth at existing stores rather than newly opened ones.
Cosi said calendar shifts for New Year's and Easter led to lower same-store sales.
Shares rose 24 cents, or 10. 8 percent, to $2.47 in aftermarket trading. The shares closed at $2.23 in the regular session.
