Just when you think Green Mountain Coffee Roasters
Excluding one-time items, Green Mountain's third-quarter net income increased 31% to $18.6 million, or $0.13 per share. Revenue skyrocketed 64%, to $311.5 million. Green Mountain's acquisition of the Keurig single-cup brewing system continues to give it an edge that keeps boosting its net sales higher and higher.
During the quarter, Green Mountain managed to sell 683 million K-cups -- a 72% boost year over year. Don't forget that K-cups are the recurring, high-margin part of Green Mountain's business. The company's operating margin ticked up to 12.2%, from 12% in the year before.
Many other companies clearly covet a slice of the coffee-slinging market, including McDonald's
Still, Green Mountain's valuation is reaching seriously high altitudes. It trades at a nosebleed multiple of 61 times trailing earnings, compared to Starbucks' not-exactly-cheap 23 times earnings. Can Green Mountain keep growing fast enough to convince investors that it deserves such a premium valuation? Sip these shares carefully, Fools -- overconfidence could leave you badly burned.