Caribou Coffee suffers $8.8 million loss in Q3
November 07, 2008
by Eric Schroeder
MINNEAPOLIS — Caribou Coffee Company, Inc. sustained a loss of $8,766,000 in the third quarter ended Sept. 28. The loss compared with a loss of $8,463,000 in the same period a year ago.
Net sales also finished lower, easing 2% to $60,910,000 from $61,981,000. While sales in the commercial and franchise segment rose 64% year-over-year, coffeehouse sales within the retail segment fell 6% during the quarter.
Michael Tattersfield, president and chief executive officer, said Caribou Coffee is focused on four key strategic initiatives: improving profitability of the coffeehouses, rationalizing the cost structure of the organization with the current revenue stream, aligning the current real estate portfolio, and profitably growing the commercial and franchise business channels.
"We are facing some headwinds, but nothing that we view as insurmountable," Mr. Tattersfield said. "The turnaround is a multi-year process, but we have already made some progress as evidenced by the improving EBITDA ($2 million during the third quarter of fiscal 2008 versus a loss of $700,000 during 2007)."