News

Caribou Coffee posts strong Q4 gains

February 23, 2012

Caribou Coffee Company Inc. has reported financial results for the fourth quarter and fiscal year 2011 for the period ending Jan. 1, and confirmed fiscal year 2012 guidance.

Highlights for the fourth quarter include:

• Consolidated sales increase of 18.8 percent
• Comparable same-store sales increase of 5.6 percent
• Commercial and franchise sales growth of 68.6 percent
• Net income attributable to Caribou Coffee Company of $4.9 million

Highlights for the year include:

• Consolidated sales increase of 15 percent
• Comparable same-store sales increase of 4.7 percent
• Commercial and franchise sales growth of 62.3 percent
• Net income attributable to Caribou Coffee Company of $35.2 million

"Our fourth quarter marked the conclusion of a fantastic year for Caribou Coffee, in which we made progress strategically, financially and culturally. We are pleased to have delivered another solid quarter, one that rounds out a record year of financial performance for Caribou," said Michael Tattersfield, Caribou president and CEO. "Looking ahead, we are optimistic about what we can achieve across each of our business lines, but are particularly excited to be resuming meaningful development of company-owned coffeehouses. As always, we will continue to provide the meaningful experiences our guests love, while enhancing returns for our shareholders."

Q4 results

Coffeehouse sales were $66.0 million in the fourth quarter of 2011, an increase of 6.1 percent compared to the fourth quarter of 2010. The company's food platform, specifically the addition of breakfast and lunch sandwiches, continued to drive comparable coffeehouse sales, which were a 5.6 percent increase in the quarter.

Commercial sales were $23.3 million, an increase of 77.5 percent compared to $13.1 million in the fourth quarter of 2010. The increase was largely driven by sales related to the Keurig single-serve platform, as well as new and existing customers in the company's grocery channel and increased penetration in foodservice channels.

The company's net income attributable to Caribou Coffee Company for the quarter was $4.9 million, or $0.24 per diluted share, compared to $4.3 million, or $0.21 per diluted share, in the same period in 2010. The company ended the quarter with $44.5 million in cash and cash equivalents and no long-term debt.

FY 2012 outlook

Looking ahead, Caribou Coffee confirmed the following fiscal year 2012 guidance:

• Net sales growth of approximately 10 percent
• Comparable coffeehouse sales growth of 2 percent to 4 percent
• Commercial sales growth of approximately 20 percent
• New coffeehouse unit growth of 55 — 70, of which approximately 20 will be company-owned coffeehouse openings.