Caribou Provides The Brew

Now that Starbucks (NASDAQ: SBUX) is a “boring” dividend paying value stock, growth investors may want to look elsewhere in the coffee sector to get their caffeine jolt. Starbucks’ rival Caribou (NASDAQ: CBOU) recently posted analysis beating second quarter earnings per share earnings of 12 cents. Caribou Coffee’s net sales for the quarter climbed nearly 9.4 percent to $68.9 million.

Moving to a less capital intensive strategy of franchising, rather than operate company owned stores, CBOU is posting better year over year EPS growth than its main rivals. Caribou posting 103 percent growth versus 34 percent for SBUX and 19 percent for Peet's Coffee & Tea (NASDAQ: PEET).

As the company continues to move forward with its franchising strategy and increases its Keurig partnership with Green Mountain (NASDAQ: GMCR), Caribou should see its brew strengthen. Investors wanting to play the long term story in CBOU should use any pullback in shares as a buying sign.

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