Caribou Coffee net up on strength in all channels
May 6, 2011
by Eric Schroeder
MINNEAPOLIS — Sales gains across its coffeehouse, commercial and franchise units led to a sharp gain in earnings at Caribou Coffee Co., Inc. in the first quarter of fiscal 2011. Net income in the quarter ended April 3 was $24,071,000, equal to $1.21 per share on the common stock, up from $1,092,000, or 5c per share, in the same period a year ago. Net sales rose 8% to $72,275,000 from $67,051,000.
“Our financial performance during the recent quarter underscores our successful execution against our strategy of becoming a true multi-channel coffee company,” said Michael Tattersfield, president and chief executive officer. “We continue to see success across our three lines of business, each of which contributed significantly to our 8% growth in consolidated sales and earnings per share performance.”
Coffeehouse sales totaled $57,611,000 in the first quarter, up 4% from $55,597,000 in the same period of fiscal 2010. Caribou said the gain reflected the successful expansion of the company’s food platform through the launch of breakfast sandwiches.
Commercial sales rose 30% to $11,700,000 behind growth from existing and new customers in the company’s grocery channel, sales related to the Keurig single-serve platform and increasing penetration in food service channels.
Franchise sales increased 22% to $3 million, driven by higher product sales and royalties and a net increase of 12 locations on a year-over-year basis.