There is good and bad for Caribou. More bad but a little hope I feel. 1st quarter same store sales fell 1% while first-quarter sales where up 10 percent to $61.5 million.The company said other sales, which consist of sales to commercial customers, licensees, mail order and Internet sales, grew 39 percent to $3.7 million from $2.7 million a year ago. If I was a shareholder I wouldn't want to see anymore red. I think its better off to get profitable and grow slowly than to open stores like crazy and hope for the best. I guess this is why they are getting help from Tom Zosel Assoc. See link below. Heck, even stay out of Starbucks way if you have to and focus on the better segments like bean sales for awhile. I wonder where these analysts come up with the price target of 8 for Caribou. Price targets are useless in my opinion. Earnings guidance isn't even a science. Anyway, I might pay a little more than liquidation value right now for CBOU assuming they ever make money again.
Tom Zosel Associates Helps Caribou Coffee Model Its Supply Chain Network to Tap Logistics Efficiencies
http://biz.yahoo.com/bw/070409/20070409005041.html?.v=1
Apparently they blamed the weather for impacting comps. I think its unaccountable when companies blame the weather for not getting it done.
It's going to be awhile until the company shows any hope of being worth investing in. Disclosure:author has no position in CBOU
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