NEW YORK (TheStreet) -- Keurig Green Mountain (GMCR) shares are climbing, up 0.7% to $114.86 in early market trading on Thursday, after the company announced that it will raise its coffee prices by 9% in November in an effort to offset the rising cost of coffee, packaging materials, energy and transportation.
The price of green coffee alone has increased 55% over the past year.
“Many of our competitors already have implemented price increases in light of the reality of sustained input cost increases. After careful review, we determined that it is necessary for us to adopt a small price increase in light of these higher costs," the company said.
EXCLUSIVE OFFER: See inside Jim Cramer’s multi-million dollar charitable trust portfolio to see the stocks he and Stephanie Link think could be potentially HUGE winners. Click here to see the holdings for FREE.
TheStreet Ratings team rates KEURIG GREEN MOUNTAIN INC as a Buy with a ratings score of B. TheStreet Ratings Team has this to say about their recommendation:
"We rate KEURIG GREEN MOUNTAIN INC (GMCR) a BUY. This is driven by some important positives, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover. The company's strengths can be seen in multiple areas, such as its revenue growth, largely solid financial position with reasonable debt levels by most measures, expanding profit margins, good cash flow from operations and impressive record of earnings per share growth. We feel these strengths outweigh the fact that the company has had somewhat disappointing return on equity."