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Caribou Coffee Company Inc. Reports Operating Results (10-Q)

May 07, 2010 | About:
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Caribou Coffee Company Inc. (CBOU) filed Quarterly Report for the period ended 2010-04-04.

Caribou Coffee Company Inc. has a market cap of $163.4 million; its shares were traded at around $8.15 with a P/E ratio of 34 and P/S ratio of 0.7. Caribou Coffee Company Inc. had an annual average earning growth of 0.7% over the past 5 years.CBOU is in the portfolios of Jim Simons of Renaissance Technologies LLC, Chuck Royce of Royce& Associates.
This is the annual revenues and earnings per share of CBOU over the last 10 years. For detailed 10-year financial data and charts, go to 10-Year Financials of CBOU.


Highlight of Business Operations:

Net sales increased $6.7 million, or 11%, to $67.1 million in the first thirteen weeks of 2010 from $60.4 million in the first thirteen weeks of 2009. Each of our business segments contributed significantly to our consolidated revenue growth. Coffeehouse net sales increased $2.7 million, or 5.2%, to $55.6 million in the first thirteen weeks of 2010 from $52.9 million in the first thirteen weeks of 2009. Commercial and franchise sales increased by $3.9 million, or 52%, to $11.4 million for the first thirteen weeks of 2010 from $7.5 million for the first thirteen weeks of 2009. Commercial segment sales grew by $3.3 million or 58%, based on increased sales to existing customers, primarily do to distribution growth achieved during the second half of 2009. Franchise sales grew by $0.7 million or 36% primarily due to new franchise and license locations added in the second half of last year, as well as international product sales related to new store development pipeline fill.

Operating expenses. Operating expenses increased $1.6 million, or 6.7%, to $25.0 million in the first thirteen weeks of fiscal 2010, from $23.4 million in the first thirteen weeks of 2009. On a dollar basis, this increase was primarily driven by an increase in variable expenses related to our increase in sales volume, as well as a $1.1 million increase in marketing and product management initiatives as compared to the comparable quarter of the prior year. Operating expenses as a percentage of total net sales decreased to 37.2% in the first thirteen weeks of 2010 from 38.8% in the first thirteen weeks of 2009 as we were able to gain leverage on these categories from our increase in sales, particularly in labor costs needed to support our operating sements.

Coffeehouse sales increased $2.7 million, or 5.2%, to $55.6 million in the first thirteen weeks of 2010 from $52.9 million in the first thirteen weeks of 2009. This increase is attributable to a 5.2% increase in comparable coffeehouse sales in the first thirteen weeks of 2010 as compared to the same period in 2009. The increase in comparable coffeehouse sales was driven by increased traffic in our coffeehouses and a higher average guest check, primarily due to higher food sales, attributable to the launch of hot cereal in our coffeehouses.

Cost of sales and related occupancy costs. Cost of sales and related occupancy costs increased $1.9 million, or 8.6%, to $23.6 million in the first thirteen weeks of 2010, from $21.7 million for the first thirteen weeks of 2009. The increase in total dollars was driven primarily by increase cost of goods related to our 5.2% growth in comparable coffeehouse sales. Cost of sales and related occupancy costs as a percentage of coffeehouse net sales increased to 42.4% for the first thirteen weeks of 2010 from 41.1% for the first thirteen weeks of 2009. The increase was primarily due to a shift to higher quality product platforms launched in our retail coffeehouse segment, particularly shifting from a powder based chocolate ingredient to real, all natural chocolate in all of our chocolate based beverages.

Operating expenses. Operating expenses increased $1.3 million, or 5.7%, to $23.7 million for the first thirteen weeks of 2010, from $22.4 million for the first thirteen weeks of 2009. On a dollar basis, this increase was due to an increase in variable expenses, such as supplies and credit card fees related to our 5.2% increase in comparable coffeehouses sales, as well as $1.0 million in incremental spending on marketing and product management initiatives in the retail coffeehouse segment, when compared to the prior year. As a percentage of coffeehouse net sales, operating expenses increased to 42.6% in the first thirteen weeks of 2010 from 42.4% in the first thirteen weeks of 2009. This increase is primarily attributable to a year over year increase in marketing and product management initiatives, which offset efficiencies gained in other operating expenses, such as coffeehouse labor.

Cost of sales and related occupancy costs. Cost of sales and related occupancy costs increased $0.5 million, or 47.3%, to $1.5 million for the first thirteen weeks of 2010, from $1.0 million for the first thirteen weeks of 2009. As a percentage of sales, cost of sales and related occupancy costs increased to 62.0% for the first thirteen weeks of 2010, from 57.3% for the first thirteen weeks of 2009. The increase in cost of sales and related occupancy costs as a percentage of sales was primarily due to a change in revenue mix in the franchise segment, as a greate portion of sales were product sales.

Read the The complete Report

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