On Aug. 2, Caribou Coffee
- Caribou brewed up strong sales, which increased 11.1% to $62.8 million. This was a primary result from the 36 new locations opened in the past year, as comps was a meager 1%.
- Management initiated a domestic franchising program in order to expand their coffee house growth into new markets.
- Losses widened in the quarter to $3.9 million, as growth efforts have increased labor and marketing costs.
- Caribou's actions haven't perked up investors; they give it a rating of two stars (out of a possible five) over at Motley Fool CAPS. The competition fairs no better, as Peet's Coffee & Tea
(NASDAQ:PEET) also earned two stars, while coffee king Starbucks(NASDAQ:SBUX) garners three stars.
(Figures in millions, except per-share data.)
Income Statement Highlights
|
Q2 2007 |
Q2 2006 |
Change |
|
|---|---|---|---|
|
Sales |
$62.8 |
$56.6 |
11.1% |
|
Net Profit |
($3.9) |
($2.4) |
N/A |
|
EPS |
($0.2) |
($0.12) |
N/A |
|
Diluted Shares |
19.3 |
19.3 |
0.2% |
Get back to basics with the income statement.
Margin Checkup
|
Q2 2007 |
Q2 2006 |
Change* |
|
|---|---|---|---|
|
Gross Margin** |
57.8% |
58.0% |
(0.2) |
|
Operating Margin |
(6.4%) |
(4.3%) |
(2.1) |
|
Net Margin |
(6.2%) |
(4.2%) |
(2.0) |
**Includes Related Occupancy Costs
Margins are the earnings engine.
Balance Sheet Highlights
|
Assets |
Q2 2007 |
Q2 2006 |
Change |
|---|---|---|---|
|
Cash + ST Invest. |
$8.4 |
$18.5 |
(54.8%) |
|
Accounts Rec. |
$2.4 |
$1.3 |
91.1% |
|
Inventory |
$9.3 |
$10.2 |
(8.9%) |
|
Liabilities |
Q2 2007 |
Q2 2006 |
Change |
|---|---|---|---|
|
Accounts Payable |
$6.5 |
$7.7 |
(15.4%) |
The balance sheet reflects the company's health.
Cash Flow Highlights
How about brewing up a cash flow statement, Caribou?
Free cash flow is a Fool's best friend.
Related Foolishness:
Fool by Numbers is designed to give you the raw earnings information in a timely fashion, putting all the numbers you need in one easy-to-read place. But at The Motley Fool, we believe numbers tell only part of the story, so check Fool.com for more of our in-depth discussion of what the numbers mean.
At the time of publication, Fool contributor Mike Cianciolo held no position in any of the companies in this article. Starbucks is a Motley Fool Stock Advisor pick. The Fool has a disclosure policy.
