Caribou Coffee (CBOU) closed October 3 at $10.51 per share after having hit a high of $17.06 on August 12. Since its high on August 12 Caribou is down 38% despite no fundamental change in the company or its growth prospects.
Company Overview
Caribou Coffee (CBOU) was founded in 1992 and is the second largest company-operated premium coffeehouse operator in the United States behind Starbucks (SBUX). As of July 3, 2011, Caribou operated 407 company-owned coffeehouses and 147 franchised coffeehouse in U.S. and international markets.
Caribou is focused on a multi-channel approach and, in addition to their coffee houses, their coffees are also available via grocery stores, mass merchandisers, club stores, office coffee and foodservice providers, hotels, entertainment venues and e-commerce channels.
Current Valuation
At its current price of $10.51 Caribou has a market capitalization of $228.0mm and an enterprise value of $195.5mm. The company has no debt and $32.5mm in cash on its balance sheet.
Caribou is trading at a discount to comparable companies (see table below).
Company | Enterprise Value / LTM EBITDA |
Caribou Coffee (CBOU) | 7.2x |
Starbucks (SBUX) | 12.6x |
Dunkin’ Brands (DNKN) (EBITDA for 12 month period ended 3/26/11) | 24.6x |
Peets Coffee (PEET) | 13.5x |
Teavanna (TEA) | 24.3x |
Panera Bread (PNRA) | 10.2x |
Krispy Kreme (KKD) | 14.4x |
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