Here’s Why Caribou is Sinking Fast
Shares of Caribou Coffee (NASDAQ:CBOU) landed in the dumpster this morning, losing over 18 percent as investors reacted to the company’s downwardly revised revenue forecast for 2012.
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Yesterday, Caribou cited slower growth in its sales of K-cup portion packs designed for use in the Keurig coffee brewing machines sold by Green Mountain Coffee Roasters (NASDAQ:GMCR) as the reason for cutting its 2012 sales view.
The company also cut the sales growth outlook on its commercial business to 6 percent to 10 percent from the earlier forecast of 20 percent. This division accounts for almost one-fifth of Caribou’s total sales.
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