The major stock indexes tumbled more than 5% Monday following an unprecedented downgrade to the U.S. government's AAA credit rating by Standard & Poor's on Friday.
Caribou Coffee was no exception; the small-cap coffee shop chain's stock shed 8% to $14.24 in afternoon trading, but not before it rose to a 52-week high of $16 in morning trading.
The only other stocks to hit 52-week highs on Monday were capital goods maker Argan (AGX), authentication provider Collectors Universe (CLCT) and National Research (NRCI), a surveyor of business performance for the healthcare industry. Caribou posted an 83.3% jump in second-quarter earnings last week as revenue grew by 16.5%, and the company raised its full-year outlook. The introduction of breakfast sandwiches to its menu helped drive quarterly results. Caribou also announced a partnership with Crossmark, a sales and marketing services company, to help it expand its packaged coffee business and better compete with coffee giants like Starbucks (SBUX), Green Mountain Coffee Roasters (GMCR) and Dunkin' Donuts (DNKN).
-- Written by Miriam Marcus Reimer in New York.
>To contact the writer of this article, click here: Miriam Reimer. >To follow the writer on Twitter, go to http://twitter.com/miriamsmarket.
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