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.
Free Article
You're reading a free article with opinions that may differ from The Motley Fool's Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More
Premium Investing Services
Invest better with The Motley Fool. Get stock recommendations, portfolio guidance, and more from The Motley Fool's premium services.