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Mario Gabelli Tacks On Another 80% to His Caribou Coffee Stake

January 15, 2013 | About:
Billionaire investor, Mario Gabelli of mutual fund GAMCO Investors, awakens his stake in Caribou Coffee Company (CBOU), increasing it by 80.57 percent according to GuruFocus Real Time Picks. The purchase added 323,867 shares to Gabelli’s current holding, elevating his total share amount to 725,841.

The transaction bumps up his ownership to 3.57 percent of the company’s outstanding shares, compared to 1.98 percent just last month, when Gabelli re-introduced Caribou Coffee back to his portfolio. (See Gabelli Buys Caribou on News of Company Merger)

Founded in 1992, Caribou is a coffee company with a multi-channel approach to its customers, not only offering its signature coffee to its 610 coffeehouses, but also selling its products in grocery stores, mass merchandisers, club stores, office coffee, foodservice providers, hotels, entertainment venues and e-commerce channels, according to its website.

Caribou’s latest reported quarterly earnings report was released last November, highlighting its third quarter.

For the period, Caribou’s store sales increased by 3.5 percent, while its net sales decreased by 5.2 percent comparable to 2011 data. Caribou CEO Michael Tattersfield said in a statement:

“Our third quarter performance was in-line with our expectations. We leveraged on-going product innovation and an unyielding focus on customer service to grow comparable coffeehouse sales of 3.5% in the quarter. We also opened 20 new coffeehouses in the quarter, six of which were company owned. We continue to focus on our multi-channel premium coffee business model to build the Caribou brand, and are confident in our ability to drive future growth across all of our lines of business.”

For 2013, the company forecasts its net sales to grow 6 percent to 8 percent. It anticipates its coffeehouse sales to grow 2 percent to 4 percent, its commercial sales to grow 10 percent, its coffeehouse unit growth to grow by 15 to 20 units and its diluted earnings per share from $0.52 to $0.55.



Currently, the company’s EBITDA per share trendline exhibits a five-year annual trendline of 56.13 percent. (View its 10-Year Financials.)

It’s priced at $15.99, up 0.06 percent for this afternoon’s trading.

Besides Gabelli, the only other Guru who holds Caribou in its portfolio is Pioneer Investments, who owns 2.17 percent of its outstanding shares.

To view the rest of Gabelli’s latest trades, go to Mario Gabelli’s Stock Picks. Also view his undervalued stocks, his high yield companies and his top growth stocks.

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About the author:

Dianne Tordillo
Dianne Tordillo is staff writer for GuruFocus.com. She reports on a variety of financial news, primarily dealing with investor portfolios and stock trades. Her articles also highlight insider trades, as well as the many useful features of GuruFocus.

Visit Dianne Tordillo's Website


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