As if Green Mountain Coffee Roasters
So let's take a roll call of the Keurig army.
- Keurig parent Green Mountain has done amazingly well. It moved 479,000 single-cup brewers this past quarter, after shipping a whopping 711,000 K-Cup brewers during the holiday quarter.
- Cuisinart is hitting the market with its K-Cup brewer.
- And now, so is Mr. Coffee.
"I would hate for Green Mountain to wake up one day and see Mr. Coffee in the mirror," I wrote earlier this year, when I recommended the stock to Motley Fool Rule Breakers subscribers. But I was referring to having this growth stock settling for a life of kitchen hardware. If Green Mountain is staring at Mr. Coffee on the other side of a negotiating table, brokering a deal that will populate the planet with yet more machines that require K-Cup refills, I'm all for that.
See, Green Mountain essentially sells its Keurig machines at cost. The real money comes in the high-margin K-Cup sales. There were 432 million K-Cup refills sold during the company's most recent quarter.
Oh, and that was before Wal-Mart
If you're wondering why there's a little more elbow room at your local Starbucks
Who will be the next to enlist in Green Mountain's Keurig army?
Some other Green Mountain sips:
Green Mountain Coffee Roasters is a Motley Fool Rule Breakers pick. Starbucks and Wal-Mart are Inside Value recommendations. Starbucks is a Stock Advisor recommendation, and the Fool owns shares as well. Try any of our Foolish newsletter services free for 30 days.
Longtime Fool contributor Rick Munarriz can walk to three Starbucks stores from his home, but he's still not much of a coffee sipper. He's had a Keurig brewer in his home for two years now. Rick doesn't own shares in any of the companies in this story and is also part of the Rule Breakers newsletter research team, seeking out tomorrow's ultimate growth stocks a day early. The Fool has a disclosure policy.