Second Cup reports reduced losses in Q3

Canadian specialty coffee retailer Second Cup is reducing the number of corporate stores through franchising to strong operators and returning to an asset light model, according to the company’s earnings statement. Second Cup has reported a net loss of CA$75,000 in the third quarter of 2016, which represents a significant improvement compared to their net loss of CA$441,000 in the second quarter, according to the statement. Net loss year to date is CA$1,122,000, compared to a loss of CA$1,247,000 in 2015. The company is attributes much of this result to the reduction in the number of company-owned cafes, down to 26 from 42 at the same time last year. Second Cup has said that this is consistent with the company's strategy of returning to an asset light business model. Second Cup has also announced that it no longer expects to achieve the growth targets set out in its three-year plan, released in 2015, and has withdrawn its previously-disclosed forward-looking information. Second Cup’s spokespeople say that the company is evaluating options for future financing and strategic alternatives. The Board has formed a special committee to review the various options and will make an announcement when a decision is made.