Second Cup posts first rise in sales since 2015
MISSISSAUGA, Ont. - Things may be perking up at the Second Cup Ltd. (TSX:SCU). The coffee chain says during its second quarter ended July 1 it had a 0.7 per cent increase in same-store sales a key retail metric measuring sales at locations open for at least a year.
That marks its first positive quarter since the fourth quarter of 2015.
The Mississauga, Ont.based company trimmed its net losses to $315,000 or two cents per share from $441,000 or three cents per share in the same period a year ago.
Revenue was down to $6.2 million from $7.8 million, though it had 13 fewer cafes than it did last year. Second Cup says it also plans to rid itself of its debt after an agreement announced earlier this week to convert $8 million of debt into equity at $1.90 per share is finalized. Founded in 1975, Second Cup has been struggling in recent years to ward off the likes of Tim Hortons, Starbucks and McDonald’s in the hyper-competitive cafe industry.
There are 291 franchised and company-owned Second Cups in the country.