Sec­ond Cup posts first rise in sales since 2015

The Guardian (Charlottetown) - - BUSINESS -

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.

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