Green Mountain Coffee Roasters (NASDAQ: GMCR) had shares climb 20% after coming out with a great earnings report. Is this finally the bounce back for the company that many wondered if it would ever come? On the company's most recent conference call, they discussed a strategy of focusing on lower cost machines and selling more cups. Although they did see their patent expire, they don't as yet see non-licensed cups to be a significant threat, as there are big cost and distribution barriers for any competitor that are keeping competition down. There will be increased competition from companies such as Starbucks (NASDAQ: SBUX), Kroger (NYSE: KR), and Dunkin' Brands (NASDAQ: DNKN), driving margins thinner, but Motley Fool analyst Blake Bos still sees the company as reasonably priced today, and at a good entry point.
Blake Bos and Isaac Pino have no positions in the stocks mentioned above. The Motley Fool owns shares of Costco Wholesale and Starbucks and has options on Starbucks. Motley Fool newsletter services recommend Costco Wholesale, Green Mountain Coffee Roasters, and Starbucks. Try any of our Foolish newsletter services free for 30 days. We Fools don't all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.