Hot cereal launch boosts Caribou Coffee results
November 12, 2010
by Eric Schroeder
MINNEAPOLIS — Caribou Coffee Company, Inc. posted net income of $1,607,000, equal to 8c per share on the common stock, in the third quarter ended Oct. 3. This compared with income of $654,000, or 3c per share, in the same period a year ago. Net sales for the third quarter rose 12% to $70,173,000 from $62,739,000.
Caribou, the second largest company-owned gourmet coffeehouse operator in the United States, said coffeehouse sales in the third quarter totaled $56,626,000, up 4% from the same period of fiscal 2009. The gain was attributed to increased traffic in coffeehouses and a higher average guest check, primarily due to higher food sales, attributable to the launch of hot cereal in all of Caribou’s coffeehouses at the beginning of the year and the phased roll-out of breakfast sandwiches during the third quarter.
“Our third-quarter results demonstrated successful execution across our three business lines as we delivered on our commitment to providing our shareholders with profitable growth,” said Michael Tattersfield, president and chief executive officer. “In addition to the continued momentum we experienced in our comparable coffeehouse sales, our commercial and franchise sales generated an exceptionally strong performance, reflecting increased traction in our consumer packaged goods business. With our success to date and long-term strategic growth initiatives in place, we are well on our way to building the Caribou brand through a disciplined multi-channel growth strategy.”
For the nine months ended Oct. 3 net income was $5,066,000, or 26c per share, up 134% from $2,168,000, or 11c per share, in the same period a year ago. Net sales were $206,108,000, up 11% from $186,073,000.