Starbucks and Caribou Coffee Benefit From Strong North American Market
February 01 2012 - 8:20AM
Marketwired
Coffee stocks have performed well in the early stages of 2012.
While Europe's economic crisis weighs on demand in the region,
coffee companies have benefited from strong North American demand
as well as increased coffee consumption in emerging markets. The
Paragon Report examines the outlook for companies in the Coffee
industry and provides equity research on Starbucks Corporation
(NASDAQ: SBUX) and Caribou Coffee Company, Inc. (NASDAQ: CBOU).
Access to the full company reports can be found at:
www.paragonreport.com/SBUX
www.paragonreport.com/CBOU
A drop in coffee bean prices could assist profit margins in the
industry. Coffee prices on the Nairobi Coffee Exchange (NCE)
retreated last month in response to a correction in the
international market following record prices of the commodity last
year. "Prices last year were abnormal and we expected a correction
of the prices both globally and locally," David Muriithi,
communications manager at NCE, argues.
Coffee prices on the international market dropped to below $2
per kilogram starting October last year for the first time in ten
months, signalling the end of abnormal prices, Business Daily
reports.
The Paragon Report provides investors with an excellent first
step in their due diligence by providing daily trading ideas, and
consolidating the public information available on them. For more
investment research on the coffee industry register with us free at
www.paragonreport.com and get exclusive access to our numerous
stock reports and industry newsletters.
Last week Starbucks announced that profit rose 10 percent to
$382.1 million, or 50 cents per share, for the quarter that ended
December 31 2011 -- up from $346.6 million, or 45 cents per share,
in the same quarter last year. Revenue increased to $3.44 billion
with growth from all its business lines. The company posted a 9
percent gain for its America unit, chiefly from the United States,
while sales in Europe lagged. Chief Financial Officer Troy Alstead
said on a webcast that Starbucks has been underperforming internal
targets in Europe and that the company has taken steps to improve
results there.
Caribou Coffee Company offers premium coffee and espresso-based
beverages, as well as specialty teas, handcrafted beverages, foods,
coffee lifestyle items, branded merchandise, and related
products.
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that all investment entails inherent risks. Please view the full
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