Research Report ►(comments)

Caribou Coffee Company, Inc. is an operator and franchiser of gourmet coffeehouses throughout the US. In addition to coffees and coffee beans, Caribou Coffee Company also retails specialty teas, baked goods, branded merchandise, and related products, which are both sold in-store and distributed to grocery stores, mass merchandisers, airlines, hotels, and more.

Investment Impacts (help)

USA Country Analysis ► (edit / improve) The United States (US) has a highly productive, capitalist economy and is the largest and most diverse market in the world. Currency Analysis: the US dollar (USD) has the potential to increase in value especially versus the Australian and Canadian dollar because of the significant potential of undervalued companies (see investment flows analysis). Investor Survey: the economic environment is very favorable for long term economic growth due to high scores on economic freedom and economic diversity. Trade Analysis: China, Japan, Mexico, and Canada are the top US trading partners, while the leading export and import are electrical machinery and vehicles, respectively. Commodity Analysis: The US produces a significant amount of coal and wheat for use at home and as an export. However, the US consumes a larger amount of oil, which contributes to their trade deficit. SWOT Analysis: The leading US strength is its entrepreneurial culture, while the main weakness is high health care cost. Energy independence has the opportunity to propel growth, while the housing crisis may lower growth. Profit Conclusion: An undervalued currency, high investment flow potential and favorable business environment lead to a positive outlook for US investments, which will also benefit from positive international actions.

Commodity Investment Analysis

Coffee Commodity Analysis ► (edit / improve) Coffee is a brewed beverage derived from the coffee plant beans. It is one of the most popular drinks in the world. Commodity Analysis: Coffee is rated a Buy. Coffee demanders have an average potential to increase in value, while coffee suppliers have low potential to increase in value. Investor Survey: Coffee’s long term growth potential is average due to high scores on SWOT opportunities, but low scores on lack of good substitute commodities. SWOT Analysis: Strength: Coffee is one of the most popular beverages in the world; Weakness: the cost of producing coffee increased. Opportunity to grow: coffee’s widespread use could aid growth as the world’s population increases; Threats to growth: plant disease may compete against coffee. Profit Conclusion: The commodity analysis buy rating indicates that coffee should increase in price over the short term, whereas an average investor survey means coffee may stay the same in price over the long term.

Discretionary Industry Analysis ► (edit / improve)

WikiWealth.com Industry Description: The consumer discretionary industry includes companies whose sales come from consumer discretionary income purchases. Discretionary income = gross income less taxes and necessities such as rent, mortgage and food. Read More.

WikiWealth.com Industry Profit Analysis: The best way to profit from discretionary stock investments is to find the most undervalued investments (Wall Street and Main Street buy ratings) during economic recessions. Those investments should be undervalued (see Wall Street Analysis on left side), and have high Main Street Common Sense investment ratings (see Main Street Analysis on right side). When an economic recovery occurs, discretionary stocks tend to outperform the general stock market, because consumers quickly resume spending on items they wanted, but resisted buying during tougher economic times. Eventually those investments become overvalued, because profits and stock prices increase past their fair values. In other words, the margin of safety becomes low or negative. During the last stages of an economic business cycle, just before a recession, it is best to sell discretionary stocks, because they are likely to decrease in price the fastest. Selling an stock investment is difficult to do properly. Expensive (overvalued) stocks with low Main Street Common Sense ratings should be sold at any time to invest in better stocks. Two buys ratings are the best and two sell ratings are the worst possible stock investments. As a general rule, the larger the investment potential (margin of safety), the safer the investment. Click for more information: stock research ratings.

WikiWealth.com Industry Analysis: During economic recessions, consumers tend to cut back on discretionary expenses to save money. Less spending by consumers eventually decreases business revenue and stock prices. During economic recoveries, consumers have more discretionary income, so spending quickly increases. Higher spending increases business revenue and eventually increases stock prices. During long economic expansions, discretionary income increase, but at a slower pace than during the initial economic recovery stage.

¹ Investment potential (margin of safety) is a weighted average of the discounted cash flow analysis (DCF), the enterprise value (EV) market multiple analysis, and the Warren Buffett investment analysis. WikiWealth obtains 80% of their quantitative investment potential from fundamental investment analysis.
² The weighted average cost of capital (WACC) analysis for the industry is a broad representation of the WACC for each individual company. A sub-industry WACC analysis offers both stability and accuracy for each individual company.

SWOT Analysis - Caribou Coffee Company ► Add Your Input Below

WACC Discount Rate Analysis - Caribou Coffee Company ► Experiment with CBOU's Analysis ►

Discounted Cash Flow Analysis - Caribou Coffee Company ► Experiment with CBOU's Analysis ►

Comparative Value Multiple Analysis - Caribou Coffee Company ► Experiment with CBOU's Analysis ►

Warren Buffett Intrinsic Value Analysis - Caribou Coffee Company ► Experiment with CBOU's Analysis ►

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