) --

Green Mountain Coffee Roasters


is crushing the one-cup coffee brewing market, and its strong profit numbers are driving rival coffee stocks like


(SBUX) - Get Report


Tim Hortons




(MCD) - Get Report


Following a stellar earnings beat after the closing bell Wednesday, Green Mountain shares surged nearly 22% at their all-time peak on Thursday, coming off their highs in early afternoon trading but remaining up by 19.2% at $104.98. Starbucks gained 4%, Tim Hortons added 2.9%,

Peet's Coffee & Tea

( PEET) rose 2.7% and

Dunkin' Donuts

(DNKN) - Get Report

jumped 3.2% following its highly successful IPO on Wednesday.

>> Don't Buy Dunkin' Donuts IPO: Value Analyst

"A Q3 for the record books", Canaccord Genuity analyst Scott Van Winkle noted. "A big holiday for brewers implies a big 2012 for K-cups and we haven't even discussed Keurig brewers' availability in Starbucks stores in 2012 yet. The story isn't over yet for investors, despite a stock chart that would probably intimidate the best rock climbers from Utah to Vermont."

Green mountain earned $56.3 million, or 37 cents a share, in the third quarter, more than double year-earlier earnings. Excluding one-time items, its profit came in at 49 cents a share, beating estimates by 13 cents. Revenue also came in more than double, to $717 million, topping expectations by $110 million.

>> Starbucks: Coffee Perks or Putters?

K-Cup portion pack sales surged 136% to $485 million, while Keurig brewer and accessory sales soared 66% to $105 million. Green Mountain said it sold 1.1 million Keurig machines in its recent third quarter.

It forecast fiscal 2012 EPS between $2.55 and $2.56 much higher than the $2.17 analysts had expected. Green Mountain expects sales next year to improve by 60% to 65% over this year.

Green Mountain already is the clear leader in the single-serve coffee market through the success of its Keurig brewing system. Van Winkle said earlier this year he raised his market share expectations for Keurig from 15% to 25% and then to 30%, but sees the one-cup brewer garnering upwards of 40% market penetration "given the strong line-up of brands available and further innovation lying ahead."

>> Green Mountain Wins With Dunkin K-Cups

"We expect several years of rapid growth, driven by rising penetration of Keurig single-cup coffee makers in coffee-drinking households that should drive higher revenue growth and even higher rates of earnings growth as the margin story unfolds," Van Winkle said Thursday.

Green Mountain recently inked a deal with

Dunkin' Donuts

for K-Cup distribution as well. "All aspects of the Dunkin' distribution deal appear to meet our prior expectations," Van Winkle said in June.

>> Bankruptcy Watch: 14 Risky Restaurant Stocks

Green Mountain said it expects the popularity of its Keurig one-cup brewing system to continue growing at a steady clip in the U.S., especially as brands like

Dunkin' Donuts





(CAG) - Get Report

Swiss Miss offer brewing pods for the system.

-- Written by Miriam Marcus Reimer in New York.

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Miriam Reimer


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