Green Mountain (GMCR) Percolates Following Caribou (CBOU) Results, Insider Buy
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Green Mountain Coffee Roasters (Nasdaq: GMCR) is higher on a few bits of good news today.
First, Caribou Coffee (Nasdaq: CBOU) reported its second-quarter earnings after the market closed Monday. Results were mixed with a miss on the top-line and beat on the bottom. The coffee shop giant guided fiscal 2012 earnings of 46 cents per share, shy of the 49 cents expected on the Street. Though Caribou said the outlook was lower from slower Keurig sales expectations, the conference call took a bit of a different tune.
CEO Mike Tattersfield said, in part, "...the second quarter marked the 11th consecutive period of positive comparable coffeehouse sales for Keurig...[a]s Green Mountain indicated on their call last week, the fundamentals of the Keurig system remained very strong. Consumer penetrating of the system continues to grow. Keurig Brewers continue to be the best selling brews in the category and consumers continue to be highly engaged with the Keurig platform...Keurig is now and we believe will continue to be the leading single-serve platform on the market between Mountain Coffee Roasters, expect to see steady growth for the foreseeable future."
Negative comments from Caribou show Tattersfield noting that there have been challenges placing Caribou K-Cup portion packs in the club channel, particularly with Sam's Club. Caribou noted that it recently lost its Costco (Nasdaq: COST) distribution deal. The company noted this might be due to Caribou being placed in the Green Mountain portfolio with more premium pricing...both an honor and challenge, it seems.
Looking ahead however, Caribou sees its portion packs gaining solid traction in mid-2013 as grocery sales make up for lagging club channel sales.
In addition to the Caribou news, it was disclosed this afternoon that Director Mike Mardy picked up a few shares in the open market. According to a Form 4 filed with the U.S. SEC, Mardy acquired 1,500 total shares for gross cost of about $32,350. It wasn't a huge transaction, but brought Mardy's overall stake in the company to 7,000 shares, a 27.3 percent increase over his prior position.
Shares of Green Mountain are 8.8 percent better in late Tuesday trading.
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First, Caribou Coffee (Nasdaq: CBOU) reported its second-quarter earnings after the market closed Monday. Results were mixed with a miss on the top-line and beat on the bottom. The coffee shop giant guided fiscal 2012 earnings of 46 cents per share, shy of the 49 cents expected on the Street. Though Caribou said the outlook was lower from slower Keurig sales expectations, the conference call took a bit of a different tune.
CEO Mike Tattersfield said, in part, "...the second quarter marked the 11th consecutive period of positive comparable coffeehouse sales for Keurig...[a]s Green Mountain indicated on their call last week, the fundamentals of the Keurig system remained very strong. Consumer penetrating of the system continues to grow. Keurig Brewers continue to be the best selling brews in the category and consumers continue to be highly engaged with the Keurig platform...Keurig is now and we believe will continue to be the leading single-serve platform on the market between Mountain Coffee Roasters, expect to see steady growth for the foreseeable future."
Negative comments from Caribou show Tattersfield noting that there have been challenges placing Caribou K-Cup portion packs in the club channel, particularly with Sam's Club. Caribou noted that it recently lost its Costco (Nasdaq: COST) distribution deal. The company noted this might be due to Caribou being placed in the Green Mountain portfolio with more premium pricing...both an honor and challenge, it seems.
Looking ahead however, Caribou sees its portion packs gaining solid traction in mid-2013 as grocery sales make up for lagging club channel sales.
In addition to the Caribou news, it was disclosed this afternoon that Director Mike Mardy picked up a few shares in the open market. According to a Form 4 filed with the U.S. SEC, Mardy acquired 1,500 total shares for gross cost of about $32,350. It wasn't a huge transaction, but brought Mardy's overall stake in the company to 7,000 shares, a 27.3 percent increase over his prior position.
Shares of Green Mountain are 8.8 percent better in late Tuesday trading.
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