Dougherty Comments On Keurig's K-Cup Unit Growth Deceleration

Shares of Keurig Green Mountain GMCR were down over two percent following IRI data showing drastic K-Cup unit growth rate decline.

Dougherty analyst Greg McKinley commented on the weakening decline in his report.

According to IRI data, McKinley noted that K-Cup year-over-year unit growth rate for the four-week period ending May 18 was 8.9 percent. Although Keurig Green Mountain saw solid growth for that period, the growth rate is drastically down from the 15.4 percent growth for the four-week period ending April 20.

Dougherty reminds investors and the general public that realized pricing was -530 bpts year-over-year for the May 18 period versus -700 bpts for the four weeks ending April 20.

The analyst cited lower coffee input costs and remarked that the company is, “protecting market share with high trade spending as drivers of lower pricing.”

Dougherty holds a Neutral rating on Keurig Green Mountain.

Shares of Keurig Green Mountain closed at $114.36 on Wednesday. Shares are currently trading at $112.40, down 1.71 percent.