Contact the Board of Directors on this: Benckiser is not paying enough. Starbucks trades at 2.9x sales and 15x EBITDA and Peet's Coffee just got taken private by these guys at 2.4x sales and 21x EBITDA. This company is being stolen at less than 0.9x sales and 10.5x EBITDA.
but who cares...my cost basis is 11.50 YIPPEE...i held a few weeks and get a huge return. would have liked to see this company grow and get huge but i'll take what i can get...on to BBRG (the financials are eerily similar to CBOU).
A very strong argument can be made for a $30-$35/share price, given the deal Benckiser just did only two months ago taking Peet's private at 2.4x sales and given the upside potential of generating closer to $1 million in revenue/store at Caribou. Even at today's sub-par average unit volume (AUV) of around $600,000, this deal only values Caribou sales at 0.9x. It should be closer to twice this, with the upside to Benckiser coming from the synergies with Peet's and the increased AUV. Strabucks trades at 3x sales, and Carbou is the second largest coffeehouse behind Starbucks.