The Canadian Press - ONLINE EDITION

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

  • Print

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.

Fact Check

Fact Check

Have you found an error, or know of something we’ve missed in one of our stories?
Please use the form below and let us know.

* Required
  • Please post the headline of the story or the title of the video with the error.

  • Please post exactly what was wrong with the story.

  • Please indicate your source for the correct information.

  • Yes

    No

  • This will only be used to contact you if we have a question about your submission, it will not be used to identify you or be published.

  • Cancel

Having problems with the form?

Contact Us Directly
  • Print

You can comment on most stories on winnipegfreepress.com. You can also agree or disagree with other comments. All you need to do is be a Winnipeg Free Press print or e-edition subscriber to join the conversation and give your feedback.

You can comment on most stories on winnipegfreepress.com. You can also agree or disagree with other comments. All you need to do is be a Winnipeg Free Press print or e-edition subscriber to join the conversation and give your feedback.

Have Your Say

New to commenting? Check out our Frequently Asked Questions.

Have Your Say

Comments are open to Winnipeg Free Press print or e-edition subscribers only. why?

Have Your Say

Comments are open to Winnipeg Free Press Subscribers only. why?

The Winnipeg Free Press does not necessarily endorse any of the views posted. By submitting your comment, you agree to our Terms and Conditions. These terms were revised effective April 16, 2010.

letters

Make text: Larger | Smaller

LATEST VIDEO

City Beautiful trailer: How architecture shaped Winnipeg's DNA

View more like this

Photo Store Gallery

  • MIKE.DEAL@FREEPRESS.MB.CA 100615 - Tuesday, June 15th, 2010 The Mane Attraction - Lions are back at the Assiniboine Park Zoo. Xerxes a 3-year-old male African Lion rests in the shade of a tree in his new enclosure at the old Giant Panda building.  MIKE DEAL / WINNIPEG FREE PRESS
  • PHIL HOSSACK / WINNIPEG FREE PRESS 070619 LIGHTNING ILLUMINATES AN ABANDONED GRAIN ELEVATOR IN THE VILLAGE OF SANFORD ABOUT 10PM TUESDAY NIGHT AS A LINE OF THUNDERSTORMS PASSED NEAR WINNIPEG JUST TO THE NORTH OF THIS  SITE.

View More Gallery Photos

Poll

Who will you vote for in Wednesday's mayoral race?

View Results

View Related Story

Ads by Google