Caribou Coffee Company Inc. (NASDAQ: CBOU) is perhaps the least well known of the coffee stocks, but that shouldn't deter you from taking a sip from their cup. The Minneapolis-based company is the second largest company-owned gourmet coffeehouse operator in the United States, based on the number of coffeehouses.
At the end of Q1, Caribou Coffee had 515 coffeehouses, including 101 franchised locations. The company offers high-quality gourmet coffee and espresso-based beverages, as well as specialty teas, baked goods, whole bean coffee, branded merchandise, and related products.
The company's earnings are reflecting the change.
On August 4, Caribou announced earnings per share of 6 cents, which was 6 cents better than analysts expected (yes, you read that right). This was Caribou's third quarter of positive earnings. And although the company's total sales were down (mostly because coffeehouse sales were down), Caribou did open eight franchise units, and commercial sales were up 28%.
I like Caribou's strategy of focusing on the commercial market. I rate CBOU an A, or strong buy.
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