Caribou Coffee Company, Inc. (NASDAQ:CBOU)

CAPS Rating: 3 out of 5

The Company is an owned gourmet coffeehouse operator in the U.S. It offers its customers gourmet coffee and espresso-based beverages, as well as teas, baked goods, whole bean coffee, branded merchandise and related products.

Recs

0
Player Avatar TurbulentTime (24.20) Submitted: 5/7/2012 3:19:42 PM : Outperform Start Price: $12.14 CBOU Score: +10.13

Outperform for Caribou Coffee. For those who have missed Starbucks expansion in both America and Overseas, it is our chance to buy into the coffee chain. Yes, it is not Starbucks, it is better than Starbucks. We have seen how Starbucks overexpanded in America and its stock prices tumbled to $15 in 2009. Starbucks has been doing the same fast expansion in China again, meaning it is running the same risk of overexpanding in China as it had in America during 2002-2007. Yet, Caribou is more of well paced growth, about 23% annually. Do not care for the single K-cup too much. Even without it, Caribou will still grow at about 23% annually. Where can we find a company with increasing profit margin when coffee bean prices come down, and a solid company with a clean balance sheet with no debt? It has the Minnesota market to itself, even Starbucks once had to close stores in Minnesota. If it is some company with a strong focus on good paced growth, it is Caribou Coffee. With only 550+ location nationwide so far and a handful worldwide, there is still a lot of room to grow. And about its coffee offerings, it is commonly said that its coffee are better than Starbucks, and its store decoration is more relaxing than that of Starbucks.

Featured Broker Partners


Advertisement