Sunday, December 21st4.6°C
24563
23931

Coffee chain Second Cup suspends dividend as it refocuses on growing business

MISSISSAUGA, Ont. - Coffee chain The Second Cup Ltd. (TSX:SCU) has suspended its quarterly dividend as part of a plan to refocus on growing the business.

The company, which has struggled amid heightened competition in the coffee business, posted a second-quarter adjusted profit of eight cents per share versus 14 cents a year ago.

Sales fell 3.9 per cent to $45.8 million while same cafe sales dropped five per cent, in the three months ended June 28.

Meanwhile, revenue for the company — which includes royalties — slipped to $6.5 million from $6.6 million a year earlier.

Operating expenses grew to $4.1 million from $3.8 million.

The suspension of the dividend comes as the company considers "attractive opportunities to invest capital."

Second Cup has been reworking its operations in an attempt to compete against larger competitors like Tim Hortons (TSX:TSX), Starbucks and McDonald's, which made an aggressive foray into coffee several years ago.

In recent quarters, the company has reduced its management structure and focused on improving profitability at its franchise locations.

Second Cup says it plans to unveil a "store of the future" in downtown Toronto later this year that will showcase innovative ideas that will eventually rollout across the country.

The Canadian Press


Read more Business News

24200


Recent Trending




Today's Market
S&P TSX14468.26+121.51
S&P CDNX676.54+11.04
DJIA17804.8026.65
Nasdaq4765.38+16.983
S&P 5002070.65+9.42
CDN Dollar0.8618+0.0001
Gold1197.20+2.50
Oil56.50+2.39
Lumber336.20-0.70
Natural Gas3.446-0.196

 
Okanagan Companies
Pacific Safety0.12-0.01
Knighthawk0.01-0.005
QHR Technologies Inc1.25-0.03
Cantex0.03-0.005
Anavex Life Sciences0.1726+0.0026
Metalex Ventures0.05-0.005
Russel Metals25.58-0.42
Copper Mountain Mining1.55-0.02
Colorado Resources0.120.00
ReliaBrand Inc0.011-0.0089
Sunrise Resources Ltd0.05-0.005
Mission Ready Services0.215-0.01

 
23744


24175

FEATURED Property
21458051191 peak point drive
2 bedrooms 2 baths
$283,900
more details
image2image2image2
Click here to feature your property
Please wait... loading


My final thoughts on real estate

This will be the last column I write on real estate. Largely because at the end of the year I will be handing in my license. After 20+ years of working in land development, resort development and rea...


Reflecting on the end of the year

The importance of the end of the year and the Christmas holidays is profound. It is a time to reconnect with family and traditions that have made us who we are. But the year-end has always been a time...


Parenthood: Estates, insurance & taxes

It is now even more important to ensure your loved ones are well looked if anything should happen to you. Here are a few topics to consider helping you prepare for some of the unexpected events that c...

_



24111

24111


Member of BC Press Council


24409