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COSI - Cosi Inc.


hyten1

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lloyd miller keeps buying, what does he see in this?

 

i took a look, a declining restaurant chain, lots of NOL ($200mil), 1/4 market cap in cash, no debt, management trying to stabilize the biz (closing stores etc.), not much else i see. i guess lloyd think the management can prob stabilize this thing, considering the nol and cash its a decent risk and reward opportunity?

 

 

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lloyd miller keeps buying, what does he see in this?

 

i took a look, a declining restaurant chain, lots of NOL ($200mil), 1/4 market cap in cash, no debt, management trying to stabilize the biz (closing stores etc.), not much else i see. i guess lloyd think the management can prob stabilize this thing, considering the nol and cash its a decent risk and reward opportunity?

 

I am not sure.  I know that their sandwiches used to cut up the inside of my mouth.  For anyone who hasn't had Cosi before, they use a flatbread that they bake right there in front of people.  It tastes good, but can be sharp.  It's like Captain Crunch when you're a kid.  Tastes good, but the inside of the mouth is road kill after you eat.

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I don't think investing in COSI is a good idea. They don't own any of the real estate and the restaurant business is a tough business, especially in NYC. The foods Cosi offers aren't unique, and their menu items are comparable to Panera Bread. NYC has plenty of these places that offer similar food at cheaper prices. Weirdly, Korean-Americans efficiently run these place and for some reason that's the business they go into. It's hard for me to imagine that Cosi can compete with these guys on top of other places, like Panera and Chipotle.

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