Don't think so as KKD or any other Brick & Mortar business model seems inefficient to the GMCR model. Not a big enough footprint for GMCR to disrupt their model. DNKN's larger footprint might make more sense, but even then, why do it? GMCR's model is the right one.
Honestly, I never heard of GMCR before they bought shares in KKD. Why they bought shares? I don't really know ... maybe a way to influence KKD to allow them to be KKD's sole coffee supplier?
First, I don't like to talk 'buyout' of a company that can sustain its business on its own. When people start pushing for a buyout, I interpret that as the company not being able to manage the business effectively enough by itself that will in turn raise the stock price; hence, they need a buyout to do what they can't do on their own.
Second, I believe that if any buyout offer is made, it would more likely be made by an investment firm, just as Toys-R-Us and Burger King had been bought out by one. These investment firms would need to be able to see some factor of growth that the target company is not accomplishing ... in KKD's case, a much higher store count, but that would take a lot of additional investing, not to mention establishing a manufacturing/distribution network to support the larger number of stores - something Dunkin did 20+ years ago, but their quality suffered.
And if KKD were to expand their presence, how rewarding will it be? Is Dunkin profitable? Is Dunkin producing enough revenue, whereas if KKD were to take 20% of Dunkin's customer base, would that be enough to bring profits to KKD?
And on the coffee front, the market is flooded with participants on every street corner already, half of those offering lunch and dinner items that KKD will most likely never have.
GMCR did not take a position. Its CEO- Bob Stiller made a took a personal position.
If you haven't heard of GMCR, respectfully where have you been?
Its been one of the hottest stocks for the last few years, a Wall Street darling, many financial articles written about it and you must have seen the Keurig single serve machine or K-cups somewhere.
GMCR is redefining a way to drink coffee. They have 8% household penetration now and one analyst is looking for 40% penetration.
Well, I am not a coffee drinker, so that could be one reason I never heard of them, although the term "K-cups" does seem to ring a bell for some reason.
Yes, I see GMCR has been quite the explosive stock.
Now that you clarified that it was a personal position taken by the CEO and not GMCR itself, I would guess the most likely reason for him buying shares was, it appeared to be a good investment ... I thought the same thing when I bought shares of KKD last year in the high $2's.
Of course the only way to know his true reason, is to ask him, right? :)
I would have to imagine that the new coffee flavors will come from Green Mountain.
There coffee has a wonderful reputation.
As a matter of fact thats why Stiller bought thye company.
On a ski trip to Vermont many years ago he tried Green Mt, which was being sold in bage at convenience stores, gas stations etc.
In 2006 GMCR bought the Keurig single serve machine. It was then that they developed the K-cup.
The rest as they say is history.
The Qt just announced had revenues over 700 million and the market cap is close to 15 billion.
The fact that Bob Stiller owns 5% of KKD was one of the major reasons I bought stock in KKD.
Following a leader is imo good thinking
Have a good night!