On Jul 9, 2013, Zacks Investment Research upgraded
Green Mountain Coffee Roasters Inc.
) to a Zacks Rank #1 (Strong Buy) as it has secured numerous
strategic alliances with other beverage giants for its
single-serve Keurig brewers and K-cups.
Why the Upgrade?
Since March 2013 Green Mountain is roping in more and
more beverage giants into its Keurig distribution system to
increase the popularity of this single serve brewer. In March
2013, it formed a strategic alliance with
) under which the Lipton iced teas will be available in the
K-cups of GMCR's Keurig business unit. Again, in May 2013, the
coffee giant joined forces with The Coffee Bean & Tea Leaf to
launch the Coffee Bean & Tea Leaf K-Cup for Keurig
Green Mountain aims to popularize the single-cup brewing
system in America and has therefore, entered into several
strategic distribution agreements to rope in popular brands like
Dunkin' Brands Group Inc.
Through these agreements, Green Mountain is aligning with the
strongest beverage brands to support a range of consumer choices
and taste profiles in Keurig Single-Cup Brewing system.
Estimates were mostly revised upwards following the strategic
alliances of the company and its effort to gear up the Keurig
brewer and K-cups. For fiscal 2013, the estimate moved up 1.0% to
$3.16 over the last 60 days. The Zacks Consensus Estimate for
fiscal 2014 increased 2.0% to $3.56 over the same period.
Green Mountain also gave an encouraging outlook for the third
quarter of fiscal 2013, when it expects earnings per share in the
range of 71 cents - 78 cents and sales growth in the range of 11%
to 15%. The guidance reflects the company's continuous efforts to
increase brand investments and product innovations.
Moreover, GMCR delivered a stellar second-quarter fiscal 2013
earnings (announced on May 09, 2013) on the back of solid top
line growth during the quarter. The results were ahead of both
the year-over-year results as well as the Zacks Consensus
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