The Second Cup Ltd. spilled more red ink last year as the Canadian coffee shop operator worked to refresh its brand and revive its operations.
The Toronto-area company posted an annual loss of $27-million or $2.66 for the 52 weeks ended Dec. 27, including a net loss of $469,000 or four cents per share in the fourth quarter.
In 2013, it lost $7.4-million or 74 cents per share for the year, but earned a profit of $1.2-million or 12 cents per share in the fourth quarter.
The 2014 fourth quarter included a $391,000 provision for café closures and a $692,000 item for acquisition of some franchise cafés. The 2013 fourth quarter including $883,000 for restructuring charges, a $105,000 provision for closures, and a $299,000 charge for asset impairments.
Second Cup earned an adjusted profit of three cents per share in the fourth quarter of 2014 – down from 22 cents per share a year earlier.
Fourth-quarter revenue for the Toronto-area company was $8.4-million, up from $8-million a year earlier, while sales within its café network fell to $49.4-million from $51.9-million.
Same-store sales at locations open at least a year was down 3.9 per cent in the fourth quarter and down 4.7 per cent for the full year, while the number of cafés as of Dec. 27 was 347, down from 356 a year earlier.
For the full year, Second Cup had adjusted earnings of 20 cents per share, down from 54 cents per share in fiscal 2013. Annual revenue for Second Cup rose to $28.2-million from $27.2-million while system sales dropped to $182.8-million from $191.4-million in fiscal 2013.