Jun. 26, 2014, 3:56 PM
- Dougherty (apparently citing IRI) reports Keurig (GMCR -2%) saw 11.5% Y/Y K-Cup unit growth over the 4 weeks ending June 15. That's an improvement from the 8.9% reported in the prior 4-week period, but still slower than the 15.4% growth seen in the period before that one.
- Expectations are high following a 59% YTD rally fueled by strong earnings reports reports and the Coca-Cola deal.
- Keurig's portion pack sales rose 13% Y/Y in the March quarter to $898.2M, thanks largely to a 15% increase in sales volume.
Jun. 19, 2014, 10:15 AM| 1 Comment
Jun. 17, 2014, 2:49 PM
- Shares of Keurig Green Mountain (GMCR +5.2%) race to new all-time highs on a momentum swing.
- On the fundamental side of the equation, analysts continue to edge long-term earnings estimates higher on Keurig with the firm's partnerships with Subway and Coca-Cola looking promising.
- GMCR traded at over $128 a share before settling back.
Jun. 17, 2014, 6:57 AM
- Coffee output in India is forecast to rise after suffering a setback last year.
- Higher production from the region could increase global supply to pressure prices after a drought in Brazil has had major impact on the coffee market.
- Prices on bagged coffee has been increased by a wave of companies including J.M. Smucker and Kraft Foods.
- Wholesale coffee prices still have a big wildcard in the mix with the emergence of El Nino.
- Related stocks: SJM, KRFT, THI, SBUX, GMCR, MCD, JVA, KRFT, DNKN.
- Related ETF: JO
Jun. 10, 2014, 3:04 PM
Jun. 9, 2014, 12:45 PM
Jun. 6, 2014, 2:51 PM| 5 Comments
May. 29, 2014, 12:12 PM
- Keurig Green Mountain (GMCR -2.3%) trades lower after fresh data from IRI indicates a deceleration in sales growth for the 4-week period ending on May 18.
- Unit growth fell to a 8.9% pace from 15.4% over the previous four-week period.
- The unit growth coincides with overall lower pricing from the company.
May. 14, 2014, 11:25 AM
- Coffee prices could be driven higher later this year due to high demand for premium beans and a tight supply as a result of a harsh drought in Brazil.
- The International Coffee Organization forecasts H1 coffee production will be down close to 5%.
- The wildcard: An early outbreak of El Nino could also disrupt crops across South America.
- What to watch: Starbucks (SBUX), Tim Hortons (THI), McDonald's (MCD), and Keurig Green Mountain (GMCR) could get pinched if coffee prices push significantly higher. Analysts note not all of the input costs can be passed off to consumers and hedging strategies weaken above a price level of $3/pound.
- Related ETF: JO
May. 13, 2014, 3:59 PM
- Today’s news that Coca-Cola (KO +0.6%) has increased its equity position in Keurig Green Mountain (GMCR +7.5%) to 16% from the original 10% purchase leads Canaccord analysts to believe that KO favorably views GMCR's positioning and growth opportunity in coffee, and has confidence in the upcoming Keurig Cold launch.
- Regardless of the timing of adding to its stake, Canaccord says the move illustrates the value in single-serve and with Coke as a 16% holder, "the strongest potential partner in cold beverages is fully engaged" with a significant material interest in the upcoming Keurig Cold launch, and the stake also could boost GMCR's valuation reflecting the addition of a premium over the speculation of a future take-out by KO.
May. 13, 2014, 9:15 AM
May. 13, 2014, 7:29 AM| 8 Comments
May. 8, 2014, 9:16 AM
May. 7, 2014, 5:45 PM
May. 7, 2014, 4:33 PM
- Keurig Green Mountain (GMCR) +6.4% AH as FQ2 earnings and revenues beat estimates, buoyed by strong coffee sales and cost cuts.
- Sales of single-serve packs rose 13% to $898M, while sales of brewers and accessories rose 8.5%.
- FQ2 gross profit increased 10% and gross margin improved to 41.5% from 41.3%.
- Sees FY 2014 EPS of $3.63-$3.73 vs $3.72 analyst consensus estimate; sees revenues in the high single digits.
- Says it is expanding its partnership with J.M. Smucker (SJM) with a multi-year agreement to make and sell Folgers and other SJM brands in formats that work with new Keurig brewing systems.
- Authorizes a new share repurchase program of up to $1B over the next two years.
May. 7, 2014, 4:15 PM| 4 Comments
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