This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

5 Stocks to Quench Your Portfolio's Thirst

Caribou Coffee

Content on this page requires a newer version of Adobe Flash Player.

Get Adobe Flash player

Caribou Coffee (CBOU) is the second-largest company-owned premium coffeehouse operator in the U.S. based on the number of coffeehouses. The company sells premium coffee and hand-crafted espresso-based beverages, as well as specialty teas, baked goods, whole bean coffee, branded merchandise and other coffee lifestyle items. In addition, Caribou Coffee supplies its products to grocery stores, mass merchandisers, club stores, office and foodservice providers, hotels, entertainment venues and e-commerce channels. Furthermore, Caribou Coffee licenses third parties to use the Caribou Coffee brand on quality food and merchandise items.

Caribou Blend coffee can be purchased across the country and can be brewed using the Keurig K-Cup system at home or at the workplace. Think of the Keurig system as the razor and the coffee cups as the razor blades. While Keurig is owned by the troubled Green Mountain Coffee Roasters (GMCR), the patent for the Keurig system is about to expire. This will mean that more companies can sell a version of the system, which will provide more channels of distribution for Caribou's products.

>>5 Stocks Set to Soar Off Bullish Earnings

As of Jan. 1, Caribou had 581 coffeehouses, including 169 franchised locations, in 20 states, the District of Columbia and nine international markets. This compares with 407 company-owned coffeehouses and 147 franchised and licensed locations as of July 3, 2011. More domestic and international expansion is planned for 2012 and beyond.

The coffee market continues to grow domestically and internationally. Starbucks (SBUX) is all too saturated in the U.S. and is looking toward the Far East for growth. Dunkin Donuts (DNKN) is too concentrated in the Northeast. Caribou, on the other hand, is headquartered in Minnesota and is slowly spreading through the nation with significant opportunities for expansion in its future.

Coffee prices have been on the decline since peaking in the spring of 2011. I expect those prices to continue to decline in early 2012 and then moderate. With consumers now accustomed to higher coffee prices, this will result in increased margins for a company like Caribou.

2 of 5

Select the service that is right for you!

COMPARE ALL SERVICES
Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
DOW 17,083.80 -2.83 -0.02%
S&P 500 1,987.98 +0.97 0.05%
NASDAQ 4,472.1080 -1.5890 -0.04%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs