Just as it did last quarter, Caribou Coffee
For the second quarter, Caribou's total sales increased 11.1% to $62.8 million, and other sales, which include commercial customers, licenses, and mail and Internet sales, were up 48%. However, comps were just 1% higher as the company's revenue growth was attributed to the opening of 36 company-owned coffeehouses. Management is extremely pleased with its growth, particularly the launching of its domestic franchising program. However, with just 1% growth at existing stores, I wouldn't be in such a rush to add so many more.
The sales growth has done nothing to help Caribou earn a profit. Losses expanded in the quarter to $3.9 million, or $0.2 per share. The company is simply dumping all of its money into growing its business, increasing labor and marketing expenses.
I am fully aware that in order for Caribou to compete with the likes of Starbucks
As the coffee market continues to become even more crowded with Dunkin' Donuts and McDonald's
For more on what's brewing with the coffee makers, check out:
Starbucks is a Motley Fool Stock Advisor recommendation. The Gardner brothers have beat the S&P by 38%, so far this year so join them free for the next 30 days to get their latest marketing beating picks.