In the summer of 2012, this stock looked like yesterday’s news. In less than a year, shares had crumbled from a high above $100 to $17, as traders jumped ship in advance of the company’s key patent expiring. They feared the market would be flooded with single-serve coffee brands. Yet, two years later, Keurig Green Mountain (Nasdaq: GMCR) and its K-Cups continue to reign supreme. And shares of the undisputed king of the single-serve coffee market are back in the triple digits and trading near their all-time highs. The competition still lags far behind, having penetrated only 13%… Read More
In the summer of 2012, this stock looked like yesterday’s news. In less than a year, shares had crumbled from a high above $100 to $17, as traders jumped ship in advance of the company’s key patent expiring. They feared the market would be flooded with single-serve coffee brands. Yet, two years later, Keurig Green Mountain (Nasdaq: GMCR) and its K-Cups continue to reign supreme. And shares of the undisputed king of the single-serve coffee market are back in the triple digits and trading near their all-time highs. The competition still lags far behind, having penetrated only 13% of U.S. households. Keurig controls the other 87%, with an estimated 16 million of its coffee machines in U.S. homes. The company continues to grow by strategically partnering with major brands like Starbucks (Nasdaq: SBUX) and Dunkin’ Brands (Nasdaq: DNKN) to license its K-Cup technology. In its most recent quarter, sales of K-Cups increased 13% year over year, helping boost revenue 10% to $1.1 billion. Keurig recently inked a potentially mammoth deal — a 10-year partnership with Coca-Cola (NYSE: KO). Together the companies will produce Coca-Cola products in single-serve pods for the new Keurig… Read More