Well they are in fact a licensed roaster to Keurig, however the packaging into k-cups is done by Keurig:
"Under the terms of the arrangement, Caribou Coffee will blend and sell its gourmet coffee beans to Keurig. Keurig will be responsible for packaging the coffee into K-Cups in accordance with Caribou Coffee's specifications. Under license from Caribou Coffee, Keurig will also serve as the wholesale distributor and a direct retailer for all Caribou Coffee K-Cups."
PEET has retail locations so why the difference? If Tattersfield succeeds in making them profitable CBOU will retain more diversified business model while continuing to expand K-Cup / Commercial business as well. I'm not ready for them to throw in the towel just yet - they generate A LOT of cash. Don't let depreciation expense fool you into believing the retail locations should be ditched. The investment has been made. Unfortunately a non-cash expense makes the bottom line look bad but this is changing due to reduced capital spending.
CBOU has close to three times the retail locations as PEET.
PEET has the wholesale grocery & distribution business. CBOU does too, but on a much smaller scale.
PEET has great mgmt. CBOU is still tring to find it's footing.
CBOU is closer to what DDRX was BEFORE they sold their retail operations. Why pay all the costs associated with keeping the stores open plus labor when you get sell your brand wholesale and make better profit margins?
How do you tell your shareholders that all the money you've spent opening stores has not been the success you planned for , except for the management?
Look at revenue per employee for CBOU (177K) vs. PEET (400K) and you'll see why PEET has a market cap almost 3x that of CBOU.
Disclosure: I am long Caribou and have been for quite awhile. I'd just wish they would pare down the number of stores they have and stop opening new ones.