Caribou Coffee 2009 Financial Statements Analysis

Caribou Coffee Company, Inc.

2009 Financial Statements Analysis

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Robert Sarmiento

MJ Stein

John Broussard

Xinzhu Bao

Siyuan Li

Table of Contents

Company Profile 3

Ratios Analysis 6

Income Statement Analysis 12

Balance Sheet Analysis 15

Cash Flow Analysis 18

Future Growth 20

Investor Recommendation 21

Works Cited 22

COMPANY PROFILE

Caribou Coffee was founded in 1992 and issued an initial public offering (IPO) in 2005. Caribou’s main revenue channels are its: (1) company-owned retail coffeehouses, (2) commercial business (selling packaged coffee and other coffee products to retail organizations like grocery stores and warehouses and exclusive distribution deals with other organizations like Keurig and Sun Country Airlines), and (3) franchise and kiosk arm. As of January 3, 2010, Caribou operated 413 company-operated coffeehouses located in 16 states and the District of Columbia. An extreme concentration of coffeehouses exists in Caribou’s home state of Minnesota as well as in the greater Midwest region; 211 and 54 coffeehouses exist in Minnesota and Illinois, respectively. In addition, Caribou has 121 franchised coffeehouses and kiosks, mostly located in the Middle East, for a total of 534 coffeehouses globally.

Caribou is considered the “second largest company-operated premium coffeehouse operator in the United States based on the number of coffeehouses operated.” Its main competitor is retail coffeehouse behemoth Starbucks (8,900 coffeehouses globally), and, to lesser extents, Peet’s Coffee and Green Mountain Coffee. On the commercial packaged goods sector of its business, Caribou competes with the likes of Proctor & Gamble, Nestle and Kraft Foods, Inc. For the purpose of this analysis, we will be comparing Caribou’s fiscal year 2009 financial statements with those of Starbucks.

In 2009, Caribou had its first profitable year in five...